Don't Bet on It

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I love the World Poker Tour on the Travel Channel. The innovative use of cameras that allow audiences to see players' hole cards opened up the mysterious world of Texas Hold 'Em to the average person. The recent explosion of interest in poker can probably be attributed solely to this terrific television program. Tournament entries have exploded. The World Series of Poker used to attract the same old crowd for its $10,000 entry fee. Now, John or Jane Doe can just as easily gain entrance by winning satellite tournaments such as those held at MGM Mirage's (NYSE: MGG) Bellagio hotel in Las Vegas.

So it stood to reason that somebody would try to make money off of poker, and I don't mean the players. WPT Enterprises (Nasdaq: WPTE), which is 80% owned by Lakes Entertainment (Nasdaq: LACO), went public last August and its stock price has since doubled. But what exactly does WPT Enterprises have as its hole cards?

It believes it can make money through three divisions: its WPT Studios division, which generates revenue from the licensing of broadcast rights and membership fees from casinos and card rooms that host WPT events; WPT Consumer Products, which licenses and sells WPT-branded products; and WPT Corporate Alliances, which sells corporate sponsorships.

This is all well and good, but what if -- imagine the thought -- poker turns out to be a fad? Pros have told me they're in their golden era because of all the fresh, inexperienced meat coming to the card rooms, ready to be fleeced. After losing a ton of money, these newcomers will never visit a card room again. Who'll remain? Of course card rooms aren't the only poker-playing venue (the Fool -- ever trendy -- is in the throes of an in-house tournament), but just how big an audience can WPT Enterprises capture with its poker shows if fans' passion starts to fizzle? Why would anybody buy WPT-branded products when they are no different from any other poker products on the market? How many sets of chips, cards, and felt table coverings can it sell? Finally, how many corporate sponsors will latch on to the game, and how long will they stick around?

For me, there are too many questions surrounding this enterprise. Too many variables, and any player knows not to go all-in with a shaky hand. As far as I'm concerned, you can deal me out of this one.

Fool contributor Lawrence Meyers does not own shares of any companies mentioned herein. He placed 12th in his last poker tournament.