And the decision has left the World Professional Snooker and Billiards Association (WPSBA) facing a potential crisis with a number of crucial events still lacking sponsorship.
The WSE was appointed last August to run the WPSBA's World Snooker Ltd - its commercial operation.
But despite being hailed as the time as securing snooker's commercial future, the tough economy and tobacco advertising ban has meant sponsorships for several leading events have been hard to come by.
As players prepare for the start of the season in October, the Masters and British, Scottish and Welsh Opens are all still without main sponsors.
Said a statement from the WPBSA: "We have terminated our current contract with World Snooker Enterprises owing to their inability to perform under the terms of the contract.
"A letter has gone out to members advising them of our reasons for taking this action."
