PokerStars appeal snubbed by NJ court
Operator fails again in attempt to reignite acquisition of Atlantic Club casino
A New Jersey court has ruled PokerStars’ proposed takeover of The Atlantic Club casino should not go ahead after rejecting the Isle of Man operator’s latest appeal.
Yesterday’s rejection of PokerStars’ appeal “ which had been designed to revive the collapsed agreement “ by the state’s appellate court upholds a previous ruling that the company must walk away from the deal.
Late last month The Atlantic Club’s lawyers said Stars should “live with the bargain [it] willingly struck” when it agreed the deal to acquire the casino.
Michael Frawley, The Atlantic Club’s chief operating officer, was quoted by the Associated Press as saying the casino was “obviously very pleased” with Monday’s appellate court ruling.
“Our intentions have, and will continue to be focused on the aggressive pursuit of New Jersey’s emerging online gaming opportunities,” Frawley said.
PokerStars had hoped to complete the takeover of the ailing property and subsequently apply for an online gaming licence in New Jersey.
Yesterday the state’s Division of Gaming Enforcement confirmed that all Atlantic City casinos had divulged their chosen partners for this year’s online gaming launch, placing fresh doubt on PokerStars gaining a foothold in what it the largest US market to regulate so far.
The proposed deal, in which PokerStars’ parent company Rational Group agreed to pay US$15m deal for the casino property in December 2012, began to fall apart in April after the online operator failed to obtain a state gaming licence before the agreed deadline of 26 April.
PokerStars later filed an appeal argued that the trial court misinterpreted a statute which requires any deal to buy a casino to provide regulators with a 120-day period for review, however The Atlantic Club’s owner Colony Capital moved quickly to terminate the deal.