\n
![\"\"](\"http:\/\/i40.tinypic.com\/so6e7d.jpg\")
<\/p>\n
\n<\/p>\n
\tBy JENNIFER BOGDAN, Staff Writer Press of Atlantic City http:\/\/www.pressofatlanticcity.com\/communities\/atlantic-city_pleasantville_brigantine\/state-suspends-pokerstars-application-to-offer-web-gambling\/article_1749f1e2-628d-11e3-a838-001a4bcf887a.html<\/a><\/p>\n \tFollow Jennifer Bogdan on Twitter<\/p>\n \tAn application by an online gambling giant that lobbied for the legalization of Internet wagering in New Jersey has been suspended by the state for two years. No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":" By JENNIFER BOGDAN, Staff Writer Press of Atlantic City http:\/\/www.pressofatlanticcity.com\/communities\/atlantic-city_pleasantville_brigantine\/state-suspends-pokerstars-application-to-offer-web-gambling\/article_1749f1e2-628d-11e3-a838-001a4bcf887a.html Follow Jennifer Bogdan on Twitter An application by an online gambling giant that lobbied for the legalization of Internet wagering in New Jersey has been suspended by the state for…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-6687","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/posts\/6687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/comments?post=6687"}],"version-history":[{"count":0,"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/posts\/6687\/revisions"}],"wp:attachment":[{"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/media?parent=6687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/categories?post=6687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crapsclub.goldentouchserver.com\/index.php\/wp-json\/wp\/v2\/tags?post=6687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\tPokerStars, which operates the largest online poker website in the world, was notified Wednesday that the New Jersey Division of Gaming Enforcement would suspend its application due to lingering concerns about the company\u2019s founder, Isai Scheinberg, who is tied up in a federal indictment involving illegal online operations.
\n\tThe application for a casino service industry license, necessary to begin operations in New Jersey, could be opened again before the two-year window, but only if major changes are made to the company\u2019s operations, DGE spokeswoman Lisa Spengler said
\n\tAt stake, some experts say, is the revenue New Jersey\u2019s online gambling industry can be expected to make without PokerStars\u2019 immediate involvement. Lawmakers have said Internet gambling will not come close to hitting the state\u2019s expected $160 million tax revenue mark by the close of the fiscal year. A stamp of approval from New Jersey\u2019s historically tough regulators could open up doors for the company to operate in other U.S. locations.
\n\t\u201cIt\u2019s a blow, obviously. PokerStars is going to have to decide just how much they want to be in the market,\u201d said Brad Polizzano, a New York-based tax and gambling attorney. \u201cThey could just stay out of the U.S. if they wanted to. Obviously being here means a lot to them because they\u2019ve hired lobbyists to pull for their interests. They may have to be willing to make some changes.\u201d
\n\tPokerStars spokesman Eric Hollreiser and William J. Pascrell III, a state lobbyist who represents PokerStars, both said the company expects to continue the fight for New Jersey licensing.
\n\t\u201cPokerStars is committed to continuing the dialogue, working towards licensure and fulfilling their commitment to the state of New Jersey,\u201d Pascrell said.
\n\tPokerStars had plans to team with Resorts Casino Hotel to offer online gambling. The move was expected to result in a $10 million poker room built by PokerStars at the land-based property that hasn\u2019t had live poker since early 2010. What\u2019s more, the company had committed to establishing its North American headquarters in New Jersey, a plan expected to create 150 jobs by the second quarter of 2014.
\n\tThe DGE on Wednesday issued Resorts an Internet gambling permit, but casino officials did not say whether they would pursue a partnership with another online gambling firm. Internet wagering in the state went live Nov. 26, with six casinos participating.
\n\t\u201cWe are disappointed that PokerStars was not issued a license. We are hopeful that they can resolve their issues with the DGE in an expeditious fashion,\u201d Resorts President and CEO Mark Giannantonio said in a written statement.
\n\tCourtney Birmingham, a spokeswoman for Resorts, said the casino was not making any further statements Wednesday when asked about the possibility of other partnerships.
\n\tPokerStars has had a controversial history with Atlantic City in the past several months. It aligned itself with Resorts in July after a deal to buy Atlantic Club Casino Hotel collapsed. A legal battle continues in New Jersey Superior Court over whether the casino can keep the $11 million PokerStars paid toward the purchase price.
\n\tPokerStars would have been the first online-gambling company to own a U.S. land-based casino. At the time, the company also saw delays in licensing that would have been required for the deal. That, in part, led to speculation that PokerStars may face an uphill battle in licensing for online gambling.
\n\tOn Wednesday, the DGE said its decision to suspend the application was based on concerns about Scheinberg and the involvement of unnamed PokerStars executives with illegal gambling operations in the U.S.
\n\t\u201cThe division \u2026 may consider a request for relief to reactivate the application if significantly changed circumstances are demonstrated at which time the division\u2019s investigation of PokerStars and its affiliated entities and associated individuals will be resumed to assess suitability,\u201d Spengler said in a written statement.
\n\tPolizzano said while there\u2019s no way to know exactly what Wednesday\u2019s decision means, he speculated the division may have given the company options it didn\u2019t take, such as removing certain individuals from operations.
\n\tLast month, two shareholders of Borgata Hotel Casino & Spa\u2019s online gambling partner, bwin.party, agreed to divest their holdings. Bwin said for reasons of privacy, Ruth Parasol DeLeon and James Russell DeLeon chose to give up their shares rather than go through the DGE\u2019s licensing process for substantial shareholders. Industry analysts, however, speculated the decision removed individuals who may have faced difficulty in the state\u2019s licensing.
\n\t\u201cClearly the DGE has the bargaining power here,\u201d Polizzano said. \u201cThe biggest issue (PokerStars faces) is that other states are going to look to see what New Jersey did. If another state allows them in, that state faces the risk of being perceived as not a tough regulator. There\u2019s a pressure on other states to follow New Jersey.\u201d
\n\tState Sen. Raymond Lesniak, D-Union, who sponsored the legislation creating Internet gambling in New Jersey, said the decision isn\u2019t good for revenue streams, but he downplayed the notion that New Jersey needs PokerStars to be successful.
\n\t\u201cLook, it\u2019s not good when you don\u2019t have the big name in the business in play,\u201d Lesniak said. \u201cHowever, we have plenty of sites in operation, and I\u2019m sure they\u2019ll be able to step up and fill the gap.\u201d
\n\tRatings agencies have suggested New Jersey will see $200 million to $500 million in online gambling revenue in the first year, far from the governor\u2019s predictions of more than $1 billion by the end of the fiscal year.
\n\t\u201cThe revenue projections were way too high from the start,\u201d Lesniak said. \u201cPokerStars would have made an immediate impact because they have such a huge name in the Internet gaming business.\u201d
\n\tContact Jennifer Bogdan:
\n\t609-272-7239
\n\tJBogdan@pressofac.com<\/a><\/p>\n
\nReplies:<\/h3>\n