PokerStars Seeks to Acquire Atlantic City Land Casino
PokerStars, the world’s biggest online poker room, has offered to acquire a struggling brick-and-mortar casino in Atlantic City, New Jersey, a move that could help bring legalized online poker to the US. It would also be the first time in the history of the industry that an online poker operator will acquire a land casino in the US.
Recently, the Atlantic Club Casino Hotel has been having a financially tough time, having reported a revenue fall of $13.6 million during the last fiscal year. PokerStars could help pull the struggling land casino to its feet, which simultaneously reaping the benefits of New Jersey’s newly regulated online gambling industry, provided New Jersey passes the bill. The move could also put PokerStars back into the US gaming market for the first time after the federal government cracked down on it and forced it to leave the US market.
However, PokerStars’ issues with the federal government are worrying New Jersey gambling regulators. To acquire the land casino, PokerStars requires a license issued by the Division of Gaming Enforcement as well as the Casino Control Commission. According to industry analysts, acquiring the casino will not be smooth sailing for the online poker operator, considering the fact that it has not yet ironed out several issues with the feds. While it is true that PokerStars got into a $731 million settlement deal with the DoJ, as part of which it acquired the Full Tilt Poker brand and assets and agreed to refund Full Tilt Poker’s international poker players, the settlement deal doesn’t appear to have covered all issues.
The settlement deal, however, leaves PokerStars free to return to the US provided the US federal government or a state government legalizes online gambling. If PokerStars acquires Atlantic Club Casino Hotel, it will offer games such as slots, blackjack, poker games, a fitness club, and a hotel. The online gambling operator will also become a staunch advocate for online gambling legalization.
New Jersey regulators are, therefore, cautious as they do not wish to violate federal regulations. The Rational Group has applied for “an interim casino authorization” as its first step to acquiring the casino. This gives the Division of Gaming Enforcement 90 days to decide and 30 more days to cast its vote.
New Jersey is on the verge of becoming a great online poker hub. A few days back, Chris Christie, the governor of New Jersey, issued a conditional veto on the state’s online gambling bill. The governor has expressed his willingness to sign into law an online gambling bill amended according to his suggestions. Rich Muny of Poker Players’ Alliance (PPA) called it “a conditional acceptance.”
Senator Ray Lesniak, who supports online gambling legalization, said, “It is great to see a modern, global company like PokerStars interested in investing in our state and teaming up with one of the iconic Boardwalk casinos. These kinds of opportunities can be transformative and provide more proof that New Jersey – not Nevada – can be the hub for a new wave of growth in the gambling industry.”
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