On the 1st of May, we reported comments from The Atlantic Club, a New Jersey casino, that the deal for PokerStars to take over ownership of the venue was not going to be completed.
The deal has been thought to hinge on the ability of PokerStars to enter the newly regulated New Jersey online gambling market.
At around midnight UK time, we got an official response from PokerStars Head of Corporate Communications via his Twitter account:
In December 2012, The Rational Group (d/b/a PokerStars) entered into a purchase agreement for the acquisition of the Atlantic Club. (1/5)
— Eric Hollreiser (@erichollreiser) May 2, 2013
Several days ago we received a purported notice of termination of this agreement from the current owners of the Atlantic Club (2/5)
— Eric Hollreiser (@erichollreiser) May 2, 2013
It was the Rational Group’s expectation and understanding, based on the ongoing dealings between the parties that the closing date …(3/5)
— Eric Hollreiser (@erichollreiser) May 2, 2013
would be extended to allow the transaction to be completed. (4/5)
— Eric Hollreiser (@erichollreiser) May 2, 2013
The Rational Group remains entirely committed to resolving this situation and to our investment in New Jersey. (5/5)
— Eric Hollreiser (@erichollreiser) May 2, 2013
It seems that something is going on between these two parties, and that PokerStars were as surprised as the rest of us the hear the deal was not going forward to a conclusion.
This deal has attracted criticism from the American Gaming Association (AGA), who have raised questions over PokerStars’ suitability for holding a gaming licence, primarily based on the situation surrounding the legal complications of “Black Friday.” In the community at large, these actions from the AGA have been seen as an action of protectionism for it’s members, and has apparently been bankrolled by the owners of the WSOP, Caesar’s Entertainment.
We’ll have to keep a very close eye on this developing situation, as it will be continually moving.
