PokerStars’ lawyers have filed a brief with New Jersey regulators opposing the recent petition filed against it in New Jersey by the American Gaming Association.
The 15-page brief characterises the casino trade group’s recent petition against the application of PokerStars owner Rational Group for interim casino authorisation in NJ as a “thinly veiled anti-competitive campaign”, and argues that both the AGA and its petition fail to meet the requirements for participation in the licensing process.
According to the brief addressed from Stars lawyers to the NJ Casino Control Commission and Division of Gaming Enforcement, the AGA’s petition should be denied on two fronts.
First, the AGA “lacks a significant interest in the outcome of proceedings” , other than “economic warfare”, and that its petition fails to “identify any concrete interest that the AGA has in the sale or operation of the Atlantic Club Casino.”
Stars also argues that allowing the AGA to participate would set a precedent for “transforming every licensing hearing into a platform for incumbents to make accusations of wrongdoing – including false ones – against aspiring licensees”. This causes the AGA’s petition to fall short of the other requirement under NJ regulations to “add constructively to the case without delay or confusion”.
Stars’ legal team also accuses the AGA of inconsistency in its claim that Stars is unfit for licensing in NJ, given leading member Caesars had on 8 February offered Stars the chance to buy the Rio Casino in Las Vegas, saying it would strengthen their relationship and “help” Stars get a licence in Nevada.
The AGA brief was filed “within weeks” of Caesars making this approach, PokerStars notes.
While not detailed in Stars’ brief, Nevada also in the interim period inserted a “bad actor” clause into its online gambling regulations, precluding all companies involved in providing online gambling to US customer post-31 December 2006 from licensing in Nevada for five years.
WSOP brand owner Caesars is perceived as the operator with the most to lose in New Jersey should PokerStars gain approval for its proposed buy of the struggling Atlantic Club casino. Gary Loveman recently told analysts he expected to translate its share of the bricks ‘n’ mortar casino market into the New Jersey online market. Caesars operates four casinos in New Jersey.
