PokerStars' Atlantic Club acquisition delayed
Parent company Rational Group understood to be yet to complete interim casino authorisation application.
PokerStars’ entry into New Jersey is set to be delayed, with a verdict on its application for a casino licence needed to acquire the Atlantic Club Casino unlikely to take place until late summer at the earliest.
According to NorthJersey.com, Stars’ parent company the Rational Group has not yet completed all parts of the required paperwork “ despite claiming otherwise in January – meaning that the state Division of Gaming Enforcement’s (DGE) 90-day review period has not begun.
Once the DGE has reached its verdict, the Casino Control Commission would then have 30 days to make a decision.
However, Atlantic Club COO Michael Frawley has underlined the Rational Group’s commitment to the purchase, saying in an interview on the NJ Today programme that the Rational Group plans to invest approximately $20m in the first year after the acquisition, and $40m over the first five years.
He also suggested that so far the licensing process was going well for the Rational Group: “I am very pleased with the things that I’m hearing from the governor’s office. I’m very pleased with the things I’m hearing from PokerStars.”
The American Gaming Association (AGA) has objected to Stars’ application, accusing the operator of “systematically flouting US law”, but an item intended to discuss the AGA’s petition was removed from the DGE agenda at this month’s meeting. Ifrah Law has also filed a response to the AGA countering its arguments.
Earlier this month, bwin.party CEO Norbert Teufelberger said he believed the New Jersey egaming market would be “between us and Caesars”, who have a partnership deal with 888, if Stars’ licensure in the state is not successful. Online gambling was legalised in New Jersey in February.
PokerStars is also one of 14 applicants to the Delaware State Lottery’s Request for Proposals (RFP) to provide online gambling services.