The US’ largest casino trade body has petitioned New Jersey regulators opposing approval of PokerStars for its proposed buy of the Atlantic Club Casino.
According to the American Gaming Association in a brief addressed to the Casino Control Commission and Division of Gaming Enforcement: “[The] integrity of the gaming industry would be gravely compromised by any regulatory approvals of PokerStars, a business built on deceit, chicanery and the systematic flouting of US law.”
The 28-page document details the AGA’s view of how PokerStars has “violated the laws of every state”, and that PokerStars-related entities named in the 2011 Black Friday indictments “chose not to contest the allegations they had conducted a criminal fraud and money laundering enterprise for five years”, instead agreeing a US$547m settlement with the DOJ in July 2012 which also saw them acquire the assets and liabilities of disgraced former rival Full Tilt.
The AGA said granting approval to PokerStars owner Rational Group would “send a damaging message” that companies which “engaged in chronic lawbreaking are welcome in the licensed gaming business”. This could “cripple the industry’s public image for years”, argued the lobby group.
PokerStars petitioned for interim casino authorisation from NJ gaming regulators for its proposed buy of the struggling Atlantic Club casino in January of this year. The casino recorded an operating loss of US$13.6m in the first nine months of 2012 prior to Hurricane Sandy forcing the highly damaging closure of Atlantic City, placing its 2,000-plus jobs under threat.
PokerStars’ head of communications Eric Hollreiser told the Press of Atlantic City that the ultimate decision resided with the regulators, “not self-interested partisans picking a public fight.”
Senator Jim Whelan, one of the co-authors of the internet gaming bill signed into law by Governor Chris Christie last week, accused AGA member Caesars of attempting to use the AGA as a vehicle to ensure future dominance of the market. Caesars owns four of the 12 land-based casinos eligible for licensing in NJ and the WSOP brand. “I’m fed up with these guys and their ‘holier than thou’ crap,” Whelan said. Caesars has yet to comment.
Caesars was heavily criticised by Whelan’s co-sponsor Ray Lesniak in 2011 for allegedly undermining support among members of the New Jersey Casino Association for the legislators’ first attempt to pass an internet gaming bill. The casino giant has since abandoned its unwavering support for federal-only regulation of online poker, as Congressional initiatives have floundered and intrastate efforts in Nevada, Delaware and New Jersey have come to fruition.
Caesars chief Gary Loveman told analysts during the company’s fourth-quarter earnings call last week that he would be “disappointed” if Caesars’ eventual share of New Jersey internet gaming “did not compare favourably with the market share we have in Atlantic City overall”.
Article written by Stephen Carter
