Resorts Casino Could Still Partner with PokerStars, If the DGE Finally Approves Its License
Despite being temporarily on hold due to unexplained reasons, Resorts Casino is ready to launch its New Jersey online poker portal, though the software being used will not be designed by PokerStars. Instead, Resorts Casino is partnering with the Sportech NYX LLC for its rollout.
The expected launch of Resorts Casino is a bad sign for PokerStars’ chances to enter the New Jersey market, because it appears the Atlantic City casino might be tired of waiting on their long time contractual partner and is moving in a different direction. Of the 8 remaining Atlantic City casinos, Resorts generated the lowest amount of revenue in 2014, with around $140 million generated throughout the year.
PokerStars Statement on the Deal
PokerStars appears to approve of the arrangement by Resorts Casino. In fact, from its only statement on the announcement, one would think that PokerStars and Resorts Casino still plan on a partnership. Whichever Atlantic City casino operation gets the PokerStars brand on its side is certain to have a major advantage, because of the sheer number of players in the PokerStars gaming community and the brand name recognition it has.
Everything sounds rosy, according to public pronouncements. Eric Hollreiser, Amaya Gaming’s Head of Corporate Communications, told PokerNews earlier this month, “We’re happy to see Resorts preparing to launch its online presence as it has always planned. Amaya continues to work with the DGE toward approval to bring PokerStars to New Jersey. We remain in partnership with Resorts and look forward to launching PokerStars following DGE approval.”
Resorts Casino and PokerStars
In June 2013, Resorts Casino signed a deal with PokerStars to partner on a licensed online poker site and casino when legalized online gambling launched in late-November 2013. Instead, the Division of Gaming Enforcement suspended the licensing process for PokerStars in October 2013, due to “bad actor” concerns.
Since that time, both Resorts Casino and PokerStars have been in a holding pattern. The process for PokerStars and FullTilt Poker was understandable, because those companies were still dealing with fallout from the Black Friday Scandal of 2010. At the time, the U.S. Justice Department seized the domains for those companies, accused them of breaking the UIGEA and also of money laundering, and wrote indictments for the various executives at both companies.
PokerStars Bad Actor Troubles
Eventually, PokerStars resolved its immediate troubles with the Justice Department by agreeing to pay over $700 million to the U.S. Treasury, to cover fines and indemnities. The company’s executives, such as PokerStars founder Isai Scheinberg, still faced indictments in the US, which is the immediate reason the DGE suspended the license process. At the time, the Division of Gaming Enforcement suggested PokerStars needed to get these situations resolved, before New Jersey would allow the company into their legal market.
When Amaya Gaming spent $5 billion to buy Rational Media in August 2014, it purchased PokerStars and FullTilt Poker (owned by Rational). The Canada-based Amaya Gaming is a company in good standing in the United States, holding 60 licenses in the USA. It was expected PokerStars soon would be entering the US market.
Ray Lesniak Predicts Return
State Sen. Raymond Lesniak predicted PokerStars would enter the New Jersey market in October 2014. When that didn’t happen, Lesniak blamed the delay on the fact Chris Christie was listening to the advice of Sheldon Adelson, in hopes of getting donations for his presidential bid. At the start of the new year, Lesniak once again predicted PokerStars would enter the New Jersey market, perhaps as early as March 2015. He once again suggested that delays would be due to Adelson’s influence.
With the predicted return of PokerStars in March 2015, it would be awfully strange for Resorts Casino to finally lose patience, unless it knows something the public doesn’t know. Two obvious scenarios come to mind. One, Resorts Casino has information that PokerStars won’t be given approval anytime soon, so the Atlantic City casino has decided it is tired of waiting on its troubled partner. Two, Resorts Casino suspects PokerStars will enter the market, but it has indications that the world’s #1 poker company won’t be working with Resorts Casino. In other words, it’s time to find an alternative business arrangement.
That second scenario is not as farfetched as one might think. Since Amaya Gaming bought PokerStars, there are indications that the software company might be ready to work with Caesars Entertainment on a collaboration. Amaya Gaming provides software support to many other gaming companies, both in the United States and on the international scene. Caesars Interactive is one of those companies. Therefore, PokerStars might eventually partner with Caesars Interactive in some capacity.
Giannantonio’s Statement
Resorts president and CEO Mark Giannantonio made no mention of PokerStars when he announced Resorts Casino’s partnership with SNG Interactive earlier this month. Giannantonio said in a statement, “As New Jersey’s first casino destination, Resorts is committed to delivering the best-in-class online gaming experience in the Garden State by partnering with gaming leaders, including SNG Interactive, which houses Sportech and NYX Gaming Group. With SNG’s flexible gaming solutions and exclusive game content, we’re excited to introduce Europe’s industry-leading casino slots and table games to the United States market for the best online user experience.“
