The Rational Group, Poker Stars parent company, have abandoned plans to purchase the Atlantic Club Casino in New Jersey. The Division of Gaming Enforcement in New Jersey has already been advised by the company that they are no longer interested in the acquisition.
The move was regarded as an attempt to build a platform for Poker Stars to start a legal online poker site in United States. However, the company has ran out of time for necessary licensing, while owners of the Atlantic Club didn’t agree to extend the acquisition deal and are looking to keep the $11 million advanced payment.
Although litigation followed immediately, the initial judicial ruling didn’t now allow Rational Group to win back the pre-payment. The group has now abandoned its legal claim for the advanced payment under American gambling laws. Rational is intending to win back the $11 million it agreed to pre-pay as part of the total purchasing price of $15 million.
New Jersey upkeeper of American gambling laws received confirmation of Rational’s decision to withdraw from the deal and subsequently released a letter confirming that intent. The letter was later confirmed by Eric Hollreiser, Rational Group Communications Director.
The company has not abandoned plans to establish New Jersey presence, and is already deep in negotiations with Resorts Casino Hotel. The presence in this jurisdiction is extremely crucial for operators planning to enter legal and regulated market of New Jersey soon to allow poker and online casinos in United States.
The Press of Atlantic City has reported that Rational Group is looking for a regulatory approval to be labeled as “casino service industry enterprise”, potentially allowing Poker Stars to strike a deal with Resorts to establish a New Jersey online gambling enterprise.