PokerStars' New Jersey casino deal off
Demise of deal could end up in legal proceedings, according to one source
PokerStars’ acquisition of the Atlantic Club Casino Hotel in New Jersey has been cancelled after the online poker operator failed to obtain a licence from the state’s regulator in time for the deal to be finalised.
Atlantic Club COO Michael Frawley told the Associated Press on Wednesday that the deal, which would have seen Stars acquire the property for around $30m if it gained an interim casino licence from the state, was off “in accordance with its terms”. The initial deal agreed in December reportedly stipulated a 30 April deadline for Stars to be licensed in order for the acquisition to proceed.
A source close to the matter told eGaming Review Stars was considering legal action over the losses associated with the deal’s demise. PokerStars could not be reach for comment and Colony Capital, the owners of the Atlantic Club casino, declined to comment when contacted by eGR.
Frawley told the AP the casino will “aggressively pursue” other egaming opportunities in New Jersey, where online casino and poker was legalised by Governor Chris Christie in February. Since then, Stars’ potential re-entry into the United States has come under scrutiny from rival operators and lobby groups.
Rational Group confirmed in January it had agreed to buy the casino and had filed an application to become an interim casino operator. It was widely expected that this would be followed by an application for an online gaming licence when the process opened, after New Jersey removed a clause blocking post-UIGEA operators from applying for a licence from legislation last year.