PokerStars agrees deal for NJ casino
Rational Group, the operator's parent company, has applied for approval from the New Jersey Division of Gaming Enforcement.
PokerStars parent company Rational Group has filed for approval from the New Jersey Division of Gaming Enforcement as it looks to complete the acquisition of the Atlantic Club Casino Hotel in Atlantic City.
If approved, the operator would subsequently be permitted to apply for an online gaming licence once relevant legislation is passed, after last July’s Black Friday settlement with US authorities left the door open for PokerStars to re-enter the US market where regulation allows.
A statement from the gaming authority, published by the Press of Atlantic City, confirmed the application for an “interim casino authorisation” from the operator, which is believed – according to media reports last month – to have agreed a purchase price of less than US$50m for the loss-making casino.
The venue reported gross operating losses of $13.6m for the first nine months of 2012, with gambling revenues falling 11% to $127.2m across the same period.
In a joint statement, the online operator and the land-based casino said: “The acquisition of the Atlantic Club Casino Hotel will secure up to 2,000 jobs and maintain the economic benefits the casino brings to New Jersey.”
The Atlantic Club, which offers slots and table games, will continue to operate under current management even after the completion of the acquisition, according to local media in the Garden State.
New Jersey Senator Raymond Lesniak also continues to push for regulated online gambling and sports betting in the state, however PokerStars has made no statements regarding future plans on either front.
If approved by New Jersey authorities, the Atlantic Club would become the fourth land-based venue worldwide with ties to PokerStars. The operator last year took a minority stake in London’s Hippodrome Casino, while it also has a branded poker room at the Grand Waldo Hotel in Macau and an agreement with Casino de Namur in Belgium.
The Hippodrome agreement will also see PokerStars provide the venue with an online poker offering, however the possibility of a similar agreement in New Jersey hinges at least in part on the passage of Senator Lesniak’s egaming bill.
The bill was passed by the State Senate late last year and now awaits the signature of Governor Chris Christie before it can officially become law. Christie vetoed a similar bill from Senator Lesniak in March 2011, and has until 7 February to make a decision on the current legislation.