American internet casino gambling has progressed from ban to legalization in several states in less than a year. Legalization, however, is just one of the many steps required to get those tax dollars flowing in.
Having approved online gambling in February, New Jersey is definitely staking its economic hopes on the positive impact this legalization is expected to have on the casino industry.
The USD 160 million in projected tax revenues is just one side of the coin. Of even greater importance is the number of jobs created by profitable casinos.
In order to realize the potential in online gambling, casinos have been signing deals with experienced online companies and working hard to set up shop on the internet as soon as possible.
One of the (former) biggest names in American poker rooms, however, may be left out of the party after all. We are talking about Poker Stars, of course, which is struggling to re-establish itself in America.
The company has been trying to buy The Atlantic Club, a NJ brick-and-mortar casino, thereby securing a foothold in the US market.
The move was originally welcome by the casino as much needed lifeline. The Rational Group, which owns PokerStars has been faced with serious problems, making it difficult to obtain a casino license in the Garden State.
Although it settled with the US government for allegedly breaking American gambling laws in the past, and paying USD 731 million in the process – Rational has always denied any wrongdoing. Still, this past has made it difficult to re-enter the market, and The Atlantic Club has become worried that the suitor is unsuitable after all.
On Monday a NJ appellate court ruled that the casino is free to seek new buyers, while Rational and PokerStars are also free to work on buying the casino.
Business delayed could be business denied in this case, as PokerStars’ early entry into the newly liberalized market is now in serious jeopardy.