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PokerStars Makes Deal to Enter Online Gaming Market in New Jersey

PokerStars Makes Deal to Enter Online Gaming Market in New JerseyPokerStars and Resorts Casino Hotel have announced a partnership agreement that will permit the world’s leading online poker site to provide online gaming software in New Jersey.

Just one day following the revelation that PokerStars was again prevented by New Jersey courts from succeeding in their quest to buy the Atlantic Club casino comes the news that parent company Rational Group has found another way to finagle into the U.S. market. The full details of the partnership agreement have not yet been released, but both companies are ecstatic to be joining forces.

“Resorts is a fantastic partner for us and we are looking forward to launch PokerStars in the U.S. in association with the other quality brands Resorts has brought to Atlantic City,” said Mark Scheinberg, Rational Group CEO.  “We are very happy to invest in New Jersey and we are excited about building a successful relationship with Resorts.”

Resorts Casino Hotel was the first brick and mortar to open on the Atlantic City boardwalk and has previously established partnerships with other brands such as Margaritaville and Mohegan Sun. “This [PokerStars] is another blue chip partner for Resorts to complete a wonderful series of brands,” Resorts’ Company Chairman Morris Bailey told a PRNewswire reporter.

New Jersey gaming officials must still approve the partnership agreement. It’s natural to assume that the American Gaming Association will again try to intervene in keeping PokerStars from gaining the green light to form an allegiance with the landmark casino.

PokerStars has been eyeing the U.S. online poker market for quite some time. Many believe that the deal brokered with the DoJ last year that saw Rational Group acquire Full Tilt Poker was done partly to get in the good graces of U.S. authorities. PokerStars did receive the DoJ’s blessing to enter the market if possible.

In the absence of federal online poker legislation, individual states have been enacting their own laws and some are including bad actor language to keep out the likes of PokerStars, who continued operating in the U.S. post-UIGEA. New Jersey has no such provisions in its statute, making the Garden State the best opportunity to get a foot in the door of the U.S. market.

That door has now been opened by Resorts Casino and PokerStars wants in. It will be up to state gaming officials to decide upon PokerStars’ suitability as a partner. PokerStars has shown tremendous tenacity in striving to be included in the newly-regulated online poker and gambling market in the U.S. I wouldn’t bet against them at this point.

 

article by Charles Rettmuller

 

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PokerStars To Fight Kentucky in Court

The USA is full of contrasting laws that seem to keep everyone guessing what’s what. An issue that stems back to 2008 in the State of Kentucky when 140 online gambling domains were seized based on the state’s legal definition of the confiscated domains as “gambling devices” illegally offering services to residents has again surfaced.
The parent firms of online poker operator PokerStars have filed a motion to dismiss with prejudice the Commonwealth of Kentucky’s claim on the PokerStars.com domain name. Kentucky made a similar claim at the federal level following the US Department of Justice’s seizure of PokerStars.com domain on April 15, 2011.
The latter claim resulted in the federal government writing a cheque in exchange for the state dropping its claims on AbsolutePoker.com and UltimateBet.com. Kentucky announced its $6m remittance it announced its intent to pursue the claim against PokerStars.com.

Lawyers for Rational Entertainment Enterprises Ltd. and Rational Intellectual Holdings Ltd. contend that Kentucky has never provided the firms with notice that the PokerStars.com domain had been targeted, nor allowed them the opportunity to challenge the alleged seizure in any court.

The parent companies also challenge Kentucky’s very broad definition of “gambling devices.” Both firms note that the state’s own Court of Appeals rejected the inclusion of domains as gambling devices when the Interactive Media Entertainment and Gaming Association contested the 2008 domain seizures, an opinion that was not challenged when the state Supreme Court reviewed the case one year later.

Paying the State of Kentucky has released another firm Bwin.party digital entertainment from any possible sanctions after Bwin. party paid Kentucky $15 million for civil suit violations back in 2010. The governor of Kentucky Steve Beshear, said in praise of Bwin.party for, “making every effort to comply with the laws of the United States.” It may be a less than profitable move by PokerStars to fight Kentucky while pursuing a license to operate in New Jersey.

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