PokerStars Moves On; Gives Up Bid to Buy Atlantic Club Casino

07 August 2013

It’s official. Any possible relationship between the Rational Group (parent company of PokerStars) and the Atlantic Club is over.

The decision delivered this weekend after months of fighting in and out of the courtroom. “We are no longer pursuing an acquistion of the Atlantic Club,” said a Rational Group spokesman in an emailed statement.

The Rational Group had originally signed on to purchase the Atlantic Club for a scant $15 million. The discounted price would have rescued the financially-spiralling casino and given PokerStars the platform it needs to enter the massive online potential of the Atlantic City market. The relationship was opposed by the American Gaming Association as well as several local casinos, and several statements were made publicly with regards to the character of a company who was penalized with violating US Federal Law and UIGEA.

The deal between Rational Group and Atlantic Club fizzled in May, when the Atlantic Club claimed the Rational Group didn’t hold to its contractual obligations when it failed to receive an interim casino authorization to operate in time for the closing. The Rational Group fought back, took it to court, and lost, which allowed the Atlantic Club to start courting new, and one could guess higher, offers.

The Rational Group has since moved on to greener pastures, aligning itself with Resorts Casino Hotel to provide its iGaming technologies. It has since applied for a license to operate as a “casino service industry enterprise”, which will allow it’s PokerStars brand to provide Internet gaming.

While the NJ Division of Gaming Enforcement has declared that the Rational Group’s application for licensure will be “reviewed as any other provider for Internet gaming“, PokerStars is expected to face additional scrutiny because of its torrid history. While it has worked hard to make the $731 million settlement to the US Justice Department lawsuit water under the bridge, questions surround the accusations of money laundering, illegal gambling, and bank fraud, even though PokerStars admitted no fault or wrongdoing.

Related News

  • 08 March 2013

    Caesars v. PokerStars: A Battle for Online Poker

    Forget the poker faces, the battle of online gambling is live on the felt and cards are hitting the table. Only days old, the New Jersey online gambling legislation is still warm from the presses, and already it’s the source of contention between the US casino industry and foreign interests. Some say it started with the 26-page brief filed with the New Jersey Casino Control Commission and Division of Enforcement by lawyers representing the American Gaming Association.

    Read full article
  • 03 May 2013

    PokerStars Says Atlantic Club Deal Not Over

    The Rational Group, parent company of PokerStars online poker, stated its intention to salvage the deal with the Atlantic Club Casino Hotel, even as the Atlantic Club announced on Wednesday that it is calling off the sale. Said company spokesperson Eric Hollrseiser in a statement, “The Rational Group is remains entirely committed to resolving this situation and to our investment in New Jersey.

    Read full article
  • 07 May 2013

    PokerStars Reveals Atlantic Club Purchase Price with Restraining Order

    The drama continues between PokerStars and Atlantic Club Casino Hotel and, as more details of the sale have been revealed, the rest of the world. It’s your standard online poker giant falls in love with land-based casino, online poker giant offers to wed casino, casino calls off the engagement, poker giant pursues court to prevent casino from marrying anyone else kind of story. Only this story has a few more players, a few more plot twists, and a surprising lack of initial investment.

    Read full article