PokerStars Deal for New Jersey Casino “Dead” or Dead?
UPDATE 5/2/13: PokerStars spokesperson Eric Hollreiser has released a formal statement via Twitter. This statement – combined with yesterday’s oddly short statement from the ACC – suggests there’s possibly more to this situation than meets the eye.
Note especially Hollreiser’s use of “purported” below.
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
With that in mind, consider this excellent point from Dave Behr:
@opreport well it’s weird that they signed in Dec and had an april 26 CP to get the ICA, which takes upwards of 120 days.
— Dave Behr (@ftrainpoker) May 2, 2013
Weird indeed.
Original story follows:
After reports yesterday that PokerStars missed a key conditional deadline in its pending deal to purchase the Atlantic Club Casino, word today from the ACC indicates the deal is dead – at least for now.
The story was first reported by John Brennan:
Breaking: PokerStars deal to buy Atlantic Cllub casino in AC officially dead, casino says
— John Brennan (@BergenBrennan) May 1, 2013
Excerpt from a statement by Atlantic Club Casino COO Michael Frawley:
“Our purchase agreement with PokerStars has been terminated. The Atlantic Club remains committed to the aggressive pursuit of the opportunities presented by online gambling.”
‘The advent of New Jersey’s online gaming legislation has changed Atlantic City’s future for the better and The Atlantic Club is absolutely going to be a part of that future,”
Timeline of PokerStars’ attempt to purchase the ACC
The timeline of PokerStars’ (apparently failed) attempt to purchase the ACC is a strange one:
- Dec 2012 – Reports emerge that PokerStars is in negotiations to purchase the ACC.
- Jan 2013 – PokerStars confirms they have reached a conditional agreement to purchase the ACC.
- Jan 2013 – Reports from several sources indicate that PokerStars filed their application for an Interim Casino Authorization license with NJ state officials at the end of December. The filing of the application would trigger a 90-day review window.
- March 2013 – AGA files a brief opposing PokerStars’ interim application. PokerStars files a brief in response.
- March 2013 - PokerStars asserts that Caesars had offered to sell them the Rio and the WSOP.
- March 2013 – Reports reveal that PokerStars’ Interim Authorization application – thought to be already filed – is actually not complete.
- April 2013 – PokerStars actually completes the Interim Authorization application. No word on what caused the delay.
- April 2013 – The WSJ reports that PokerStars’ deal for the ACC has “expired without a new contract in place, according to people familiar with the matter”. The expiration was due to a condition in the contract that required PokerStars to have secured the Interim Authorization by April 24th.
- April 2013 – The ACC announces the contract to purchase has been terminated.
Deal “really” dead? PokerStars done in NJ?
While certainly not a positive development for those who wish to see PokerStars operating in New Jersey, the news is hardly a death knell for the site’s chances to be a part of regulated online gambling in the state.
For example, this news could simply be part of a negotiating ploy on the part of the Atlantic Club Casino. It’s also possible that PokerStars could participate in the state as a software provider in partnership with a licensed operator, a role that does not require ownership of a land-based casino. Finally, PokerStars could always seek to purchase another NJ property, although the list of bargain-priced gambling halls looks pretty thin after the ACC.
Not everyone is certain that the deal has completely fallen through. Howard Stutz of the LVRJ tweeted these responses to the news:
I was at the Atlantic Club last week; PokerStars folks were still upbeat about the transaction @bergenbrennan @opreport @unlvgaming
— Howard Stutz (@howardstutz) May 1, 2013
Via @ap – Atlantic Club COO Michael Frawley says PokerStars deal is off “in accordance with its terms” but did not provide further details.
— Howard Stutz (@howardstutz) May 1, 2013
… and in a story on NJ.com that preceded Brennan’s, online gambling proponent State Sen. Raymond Lesniack said:
“I wouldn’t believe anything right now and just wait until the decision from the Division of Gaming Enforcement [...] What I know is that the opponents of PokerStars are out there in full force trying to prevent them from operating in New Jersey.”
Again, note that Lesniack’s comments were in response to the WSJ story about the missed deadline, not Brennan’s report that the deal is dead.
I will update this story as events warrant.
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