PokerStars' Review Suspended In New JerseyFirm Won't Be Involved With New Jersey Online Poker For Now |
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There was very bad news Wednesday for poker players in New Jersey.
Industry-leading PokerStars, which did not kick off games on Nov. 26 like its competitors did, has had its review process suspended in the Garden State, Forbes reported.
“The Division of Gaming Enforcement has determined that the application of [PokerStars] casino service industry licensure will be held in a suspended status for a period of two years,” the state said in a statement. “The Division, within that period, may consider a request for relief to reactivate the application if significantly changed circumstances are demonstrated at which time the Division’s investigation of PokerStars and its affiliated entities and associated individuals will be resumed to assess suitability."
Regulators added:
“The Division’s determination is based primarily on the unresolved federal indictment against Isai Scheinberg for the alleged violation of federal gambling statutes, namely, the Illegal Gambling Business Act and [UIGEA], and the involvement of certain PokerStars executives with Internet gaming operations in the United States following the enactment of UIGEA.” Forbes reported that the firm has had “continued association” with Scheinberg.
PokerStars was one of the targets of the Black Friday crackdown in April 2011. In July 2012, the firm settled with the U.S. government for $731 million and didn’t admit to any wrongdoing. It also acquired Full Tilt in the deal. The DOJ said it had permission to re-enter the U.S. market if a jurisdiction with legal online poker decided to give it a license.
PokerStars originally had planned to buy the Atlantic Club Casino Hotel, but that deal fell through. It later agreed to a deal with Resorts Casino Hotel and said it was willing to spend $10 million on a live poker room at the property.
“We are disappointed that the N.J. Division of Gaming Enforcement has suspended the review of our application at this time,” PokerStars said in a statement. “We note that the DGE will resume the review of our application if our circumstances change. We will remain in open dialogue with the DGE and will update them on changes in our situation as they occur.”
Don’t go feeling sorry for PokerStars, though. It’s still by far the most successful online poker site on the planet and can pursue online gaming plans in other U.S. states, ones that will likely consider legalization in 2014. The big player is California.
It is worth noting that PokerStars had originally planned to be licensed in Nevada, and even had a tentative partnership with Wynn Resorts in the Silver State. Those plans dissolved when Black Friday struck and left the company to pursue other options. It will have to do so again.
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