PokerStars has suffered some setbacks in its drive to begin online gaming operations in the United Sates—and specifically New Jersey—in 2013 and a recent report in the Associated Press outlines some of the company’s first comments on recent setbacks.
The news service reported on a year-end blog post by the PokerStars parent company the Rational Group that comments on its failure to purchase Atlantic City’s Atlantic Club casino in 2013 and the suspension of its application for a New Jersey online gaming license.
First, the company blames the owners of the Atlantic Club—which was just sold at bankruptcy auction and will now close its doors—for the botched sale of the casino early in 2013. The Rational Group signed a deal to buy the casino for $15 million, but the casino owners canceled the deal in April when Rational didn’t get state approval quickly enough.
“It’s always sad when hard-working people lose their jobs, especially during the holiday season,” the company wrote. “This is particularly sad, though, because it simply didn’t have to happen. At this time last year, PokerStars reached an agreement that would secure a new future for the casino, save the jobs of 1,800 employees and inject new blood, new technology and new finances into the Atlantic City casino economy.”
The company’s move to buy the casino came as the state was considering allowing online gambling within its borders. That move was eventually approved an online gaming started in New Jersey in November.
PokerStars had been advancing the casino money—$11 million—to keep it afloat.
“As spring approached, the economic prospects for the Atlantic Club appeared to brighten even more with the newly-enacted iGaming legislation and the promise of summer tourism business on the horizon,” the company wrote. “That’s when the casino’s then-owners gambled with their employees’ future. In hopes that the improved economic picture could lead to more rewards for them, they walked away from our contract rather than wait another few months for the regulatory approval process to be completed.
“Now, the Atlantic Club will be stripped for parts and its employees will be put out onto the Boardwalk in search of new jobs in 2014,” the company wrote. “PokerStars does not share the vulture-like management practices that led to the coming job losses and disappointment of thousands of people in New Jersey with the closure of the Atlantic Club.”
Michael Frawley, the chief operating officer of the Atlantic Club, declined to comment, the AP reported.
The New Jersey Division of Gaming Enforcement has also suspended PokerStars’ application for an Internet gambling license for two years, citing an unresolved indictment against the company’s founder.
Company spokesman Eric Hollreiser told the AP that Rational will continue to seek licensing in New Jersey while also exploring potential deals in other states.
“We’re active in many states that are considering online poker and/or online gaming regulations and are discussing opportunities as they arise and as legislation progresses,” Hollreiser said.
A recent published report suggests that New York is one state where the company is lobbying for online gambling.
Hollreiser also said the company’s partnership with Resorts Casino Hotel in Atlantic City remains intact as Rational continues to pursue a New Jersey Internet gambling license.
