PokerStars, the international leader in online poker, may be contemplating a sale to allow it to enter the burgeoning U.S. online gambling market.
At least that’s the rumor—or more correctly, one of a bunch of rumors.
PokerStars has been unable to enter the small, but growing U.S. online gambling market because of its past dealings with the U.S. Department of Justice, which shut down the site in the U.S. in 2011 for illegally accepting bets from U.S. players.
Now that online gambling is legal in three states—New Jersey, Delaware and Nevada—and being contemplated by several more, PokerStars wants back in, but has been blocked by regulators.
That led to rumors that major players at PokerStars, such as founder Isai Scheinberg—who is still under indictment stemming from the shutdown—is working to divest himself from the company to appease regulators.
But now reports are surfacing that say the entire company is up for sale. One report, in CalvinAyre.com, claimed Amaya Gaming was planning to merge with PokerStars and an agreement is already in place.
After the report, Amaya’s stock prices shot up a reported 14 percent—though they later retreated to an about 3 percent overall increase.
Some analysts viewed the acquisition as unlikely, even though putting a price on the privately owned PokerStars is not easy. Amaya has made a number of acquisitions of online companies recently and may not have the capital for a major acquisition like PokerStars.
Amaya, however, is already licensed for online gambling in New Jersey and could become the corporate face of PokerStars, allowing it to enter the market. Analysts were also quoted in reports as saying that Amaya seems to be interested in “trading up” on its current poker platform Ongame network.
Still, Amaya officials deemed it necessary to comment—or rather offer no comment—on the stock increase.
“In response to trading activity that may stem from market rumors that have come to the company’s attention regarding a potential strategic acquisition,” the company said in a statement. “Strategic acquisitions have been and are one component of the company’s growth strategy and, as such, Amaya regularly evaluates potential acquisition opportunities. From time to time, this process leads to discussions with potential acquisition targets. There can be no assurance that any such discussions will ultimately lead to a transaction. As a general policy, Amaya does not publicly comment on potential acquisitions unless and until a binding legal agreement has been signed.”
Several other rumors of potential buyers for PokerStars have also been floated recently—including Steve Wynn, bwin.party and William Hill.
PokerStars officials have also been working to back off from the company to satisfy U.S. regulators. Company CEO, Mark Scheinberg, has reportedly been reducing his role at the company and looking for a successor after the indicted Isai Scheinberg supposedly left operations to the younger Scheinberg. The elder Scheinberg still has yet to resolve his DOJ “Black Friday” indictment, another sticking point in any licensing procedure.
New Jersey regulators denied PokerStars entry into the state, but did not kill the company’s application completely or ban the company, instead leaving room for the PokerStars to restructure its management and apply again in two years or earlier. The state’s Division of Gaming Enforcement specifically pointed to the indictments against Isai Scheinberg as one of the reasons for the denial.
Meanwhile, officials with Resorts casino hotel in Atlantic City—which partnered with PokerStars to provide online gambling in New Jersey—reaffirmed its partnership with PokerStars in several reports saying they are still waiting for PokerStars to be licensed in the state.
