PokerStars Aims For Land Casinos
A bid by Pokerstars to purchase the struggling Atlantic Club casino in New Jersey has been denied by the gaming commission of New Jersey. The purchase has been in the works for some time as many Atlantic City casinos are desperate for cash and the Atlantic club was no exception.
One can assume that Pokerstars were looking to not only stretch its reach into land based gambling, but also the soon to be New Jersey online poker scene.
A bill has been passed to legalize intrastate online poker with some restrictions. One of the most important and notable restrictions are that only land based casinos residing in New Jersey may apply for a license to legally offer online poker in the state.
To reverse the decision to block the purchase of the Atlantic Club, Poker stars have filed a court order to buy the casino.
With the publication of the court order order, facts of the deal have surfaced that include a lowball purchase of only $15 million, which is $5 million less than a California based company had offered to purchase the casino. What’s more interesting is the fact that Pokerstars has been funding the Atlantic during the 2012 winter season to keep the casino from going into bankruptcy.
There’s obviously a great deal of money at stake in this deal and Pokerstars should fight this to the end. Not only does Pokerstars stand to lose the money already given to the Atlantic Club which includes $11 million of the $15 million purchase price, but it also includes a large stake in the online gambling market that is sure to heat up in the coming months.
Pokerstars is the number one poker site in the world and has huge cash reserves that should be able to sustain a long, drawn out court battle. If I were a betting man, I would let it ride on Pokerstars becoming the new owners of the Atlantic Club Casino in the future