PokerStars is not pleased that it was shut out of New Jersey’s regulated online gambling industry and it wants to tell you about it. In a post on the PokerStars corporate blog, Eric Hollreiser, Head of Corporate Communications for the world’s largest online poker room, criticized the Atlantic Club casino’s ownership for the death of the Atlantic City gaming property and painted his own company as would-be saviors.
Hollreiser explained that about a year ago, PokerStars’ parent, Rational Group, had reached a deal with the Atlantic Club’s owner, Resorts International Holdings, in which it would purchase the moribund Boardwalk casino. Early reports had the acquisition valued at $50 million, but later reports saw the purchase price as low as $11 million. At the time the deal was announced, Rational Group expressed its excitement and desire to save the casino, saying, “Rational US is a willing and enthusiastic prospective purchaser, and it intends to improve the financial viability of the property, and, therefore, the offerings available in Atlantic City.”
But in May 2013, the deal unexpectedly fell through. Atlantic Club CEO Michael Frawley told NorthJersey.com’s John Brennan, “The Atlantic Club remains committed to the aggressive pursuit of the opportunities presented by online gambling.”
Rational Group and PokerStars were not pleased. In the blog post, Hollreiser denounced the Atlantic Club’s decision:
As spring approached, the economic prospects for the Atlantic Club appeared to brighten even more with the newly-enacted iGaming legislation and the promise of summer tourism business on the horizon. That’s when the casino’s then-owners gambled with their employees’ future. In hopes that the improved economic picture could lead to more rewards for them they walked away from our contract rather than wait another few months for the regulatory approval process to be completed.
Now, the Atlantic Club will be stripped for parts and its employees will be put out onto the boardwalk in search of new jobs in 2014.
Last week, a bankruptcy court judge approved a deal in which Caesars Entertainment and Tropicana Entertainment would jointly purchase the Atlantic Club casino for a combined $23.4 million. Unlike what PokerStars would have done, however, they will not keep the casino up and running. Quite the opposite, in fact. Tropicana will take the slot machines and table games while Caesars will acquire the property itself, which it will strip to the bone.
Hollreiser wrote that had the PokerStars acquisition of the Atlantic Club gone through, it would have been able to “…secure a new future for the casino, save the jobs of 1,800 employees and inject new blood, new technology and new finances into the Atlantic City casino economy.”
Instead, PokerStars is shut out of the U.S. for the time being. On December 11, 2013, New Jersey’s Division of Gaming Enforcement (DGE) suspended its review of PokerStars’ online gaming license for two years. It did leave it open to re-evaluation, though, stating, “The Division (within the two year period) may consider a request for relief to reactivate the application if significantly changed circumstances are demonstrated…the Division’s investigation of PokerStars and its affiliated entities and associated individuals will be resumed to assess suitability.”
To conclude the blog entry, Hollreiser took one last jab at the Atlantic Club while looking forward to 2014:
PokerStars does not share the vulture-like management practices that led to the coming job losses and disappointment of thousands of people in New Jersey with the closure of the Atlantic Club. Instead, PokerStars will continue to pursue our goals and remain confident that we will have a strong presence and positive economic impact in the American market in 2014, whether that is in New Jersey or another state seeking the benefits of being home to a world-class online gaming company.