This story is sponsored by PokerStars
PokerStars and Full Tilt’s parent company has agreed a deal to buy the struggling Atlantic Club casino in New Jersey.
Rational Group filed papers with the New Jersey Division of Gaming Enforcement seeking preliminary approval for the purchase of the casino from current owners Resorts International Holdings, according to Press of Atlantic City.
The two companies said in a joint statement that the proposed acquisition would secure up to 2,000 jobs, with Stars providing fresh funding to the casino “to maintain the required financial stability” under Atlantic City casino laws and declaring its intent to “improve the financial viability of the property.”
Atlantic Club, formerly the Hilton, ran a US$13.6m operating loss in the first nine months of 2012, with its yet-to-be-issued fourth-quarter figures set to include the devastating impact of Hurricane Sandy on Atlantic City’s casino business.
Although the cost of the proposed acquisition has yet to be disclosed, the sum agreed by PokerStars and Full Tilt brands is understood to be a fraction of that paid by the current owners back in 2005, when the property was valued at more than US$500m.
PokerStars’ application was lodged in the wake of the US state’s legislators’ bill to allow New Jersey’s ailing casinos to offer online versions of their games reaching Governor Chris Christie’s desk for a third time. Christie has until 7 February to either apply his signature or veto.
Bill sponsors Raymond Lesniak and Jim Whelan recently added language to the bill to enable PokerStars to seek regulatory approval for the transaction. A “bad actor” clause that would have prevented the licensing of companies such as Stars that took US bets post 2006 - when the federal Unlawful Internet Gambling Enforcement Act was passed – was removed from the bill ahead of passage in December.
PokerStars admitted to no “wrongdoing, culpability, liability, or guilt” as part of last year’s US$731m civil settlement with US authorities which saw it acquire the assets of Full Tilt. The settlement acknowledged PokerStars and Full Tilt’s eligibility to apply for a licence in the US “to offer real-money poker when states or the federal government offer such an opportunity”, according to Stars’ head of comms Eric Hollreiser.
Bill sponsor Senator Lesniak in December welcomed PokerStars’ potential investment and establishing its American headquarters in New Jersey, saying it was proof that “New Jersey – not Nevada – can be the hub for a new wave of growth in the gambling industry.”
The final decision on Stars’ suitability for licensing and whether the acquisition can complete now resides with New Jersey’s Division of Gaming Enforcement and its Casino Control Commission.
Article written by Stephen Carter
