NJ DGE Places Hold on PokerStars’ Application
Earlier this week news broke that New Jersey gaming officials have put a two year suspension on PokerStars’ iGaming application.
DGE cites UIGEA, other violations
In a statement quoted by Forbes.com, the New Jersey Division of Gaming Enforcement stated, “The Division’s determination is based primarily on the unresolved federal indictment against Isai Scheinberg for the alleged violation of federal gambling statutes, namely, the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA), and the involvement of certain PokerStars executives with Internet gaming operations in the United States following the enactment of the UIGEA.”
Scheinberg, who is not a U.S. citizen, was indicted in New York federal court relating to PokerStars’ post-2006 operation of U.S.-facing real money online poker games.
He has not come to the United States to surrender to the charges, though rumors have circulated in the poker media that Scheinberg may be working with the U.S. Department of Justice to resolve the indictment. Whether that resolution would involve jail time or merely a monetary settlement is unknown.
Application can be re-visited during this period
The DGE’s move, it should be noted, does not permanently shut PokerStars – the world’s largest online poker room – out of what is now the nation’s largest legalized online gambling market, New Jersey.
Real money gambling web sites launched in the Garden State in late November, and by all accounts, the start of regulated Internet betting in New Jersey has largely been deemed a success, despite some issues pertaining to depositing and geolocation problems. New Jersey is the third state in the nation to see its regulated online gambling market get off the ground, behind Delaware and Nevada.
“The Division of Gaming Enforcement has determined that the application of Rational Services Limited (PokerStars) casino service industry licensure (CSIE) will be held in a suspended status for a period of two years. The Division, within that period, may consider a request for relief to reactivate the application if significantly changed circumstances are demonstrated at which time the Division’s investigation of PokerStars and its affiliated entities and associated individuals will be resumed to assess suitability,” read the DGE’s statement, in addressing the fact that should PokerStars work to resolve the sticking points cited by the Division, its application could be re-opened at any time.
For its part, PokerStars expressed a willingness to work with the DGE with the company spokesman Eric Hollreiser releasing his own statement.
“We are disappointed that the N.J. Division of Gaming Enforcement has suspended the review of our application at this time. We note that the DGE will resume the review of our application if our circumstances change. We will remain in open dialogue with the DGE and will update them on changes in our situation as they occur,” Hollreiser remarked.
PokerStars’ land-based casino partner has been approved
PokerStars, which entered into a partnership agreement with the oldest land-based casino in Atlantic City, Resorts, first attempted to gain access to the New Jersey online gambling market by purchasing the now-bankrupt Atlantic Club Casino Hotel.
On the wake of that deal being terminated by the Atlantic Club, PokerStars announced that it would be teaming up with Resorts and, if approved, would construct a brand new live poker room at the property.
For its part, Resorts has been given the green light by New Jersey regulators to launch an online gambling web site, however it remains unclear if the casino plans to find a new gaming partner now that the freeze has been placed on PokerStars’ application.
