In a stunning announcement on Friday, Ultimate Gaming – the force behind both Nevada’s Ultimate Poker and the provider of services in New Jersey through the Trump Entertainment properties – announced that they have terminated their contract due to “multiple contract breaches” with the Trump organization.
Ultimate Gaming issued a press release late yesterday afternoon stating that the contract between the two entities had been terminated by Ultimate and they would immediately leave the New Jersey market. “We are grateful to the state of New Jersey and the New Jersey Division of Gaming Enforcement (DGE) for allowing us to be one of the first companies to bring online gaming to the citizens of New Jersey,” Tom Breitling, the Chairman of Ultimate Gaming, stated in the announcement. “We are working closely with the DGE to ensure a smooth transition for our online gaming customers as we wind down our New Jersey operations.”
The reason for the termination of the contract is in the current doldrums that the Atlantic City casino industry is experiencing. On September 16, one of the two Trump properties on the Boardwalk, the Trump Plaza, closed its doors and the other Trump owned property, the Trump Taj Mahal, is on the cutting block due to Chapter 11 bankruptcy filings by Trump Entertainment. Even though a Chapter 11 filing doesn’t end a company’s existence, Trump Entertainment has stated that the Taj Mahal may have to also close as soon as November if situations do not improve.
According to the Las Vegas Review-Journal’s Howard Stutz, the bankruptcy filing by Trump Entertainment reveal how dire the situation is for both the longtime New Jersey casino group and Ultimate Gaming. One of the creditors listed on the bankruptcy report is that of Fertitta Acquisitions Co., the owners of Ultimate Gaming, which is owed $1.5 million by the Trump Taj Mahal. Because of this debt, the owners of Ultimate Gaming (who would see that $1.5 million owed to them disappear under the Chapter 11 filing by Trump Entertainment) took action because of the contract breach.
While the cessation of operations (the company immediately stopped accepting any new deposits following their announcement) in New Jersey, Ultimate Gaming looks to be forging ahead with plans for their Nevada operations. Breitling alluded to this in the New Jersey closure announcement, saying that its Nevada-based Ultimate Poker “would be enhanced” by the end of the year. Those enhancements will include a Mac-based format for players and mobile options.
Although they were in at the start of the game last November in New Jersey, Ultimate Gaming never seemed to find a firm footing. Since the opening of the online gaming industry in New Jersey, the Ultimate Gaming/Trump partnership has only pulled in approximately $5 million through online casino gaming and poker. Contrast that with the two powerhouses in the New Jersey market, the Borgata/partypoker partnership and the Caesars/888 Holdings team, which have pulled in almost $54 million between the two groups.
The move by Ultimate Gaming could also be a harbinger of change in the burgeoning online gaming industry in New Jersey. It is expected within the next few weeks that PokerStars will be granted their online gaming license in the Garden State, which could completely change the playing field. Instead of challenging the recognized #1 operation in the online poker industry. Ultimate Gaming may have decided to cut their losses and retreat to Nevada, where they still enjoy a spirited battle with the Caesars-owned WSOP.com.
As a final note on the closure of Ultimate Gaming in New Jersey, the most powerful argument for regulation of online gaming and poker has become very evident. Those regulations protect any player money that is currently in action on the site. For those that have money on the site and wish to be compensated, players are encouraged to go to either www.ucasino.com or www.ultimatepoker.com for refunds.
