New Jersey Denies Pokerstars Igaming license for two years

curtinsea · Dec 11, 2013

DGE’s official statement reads as follows:

"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. 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 State following the enactment of UIGEA."

curtinsea · Dec 11, 2013

Response from pokerstars

“We are disappointed that the N.J. Division of Gaming Enforcement has suspended the review of our application at this time,” Eric Hollreiser, a PokerStars spokesman, said in a statement. “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.”

curtinsea · Dec 11, 2013

Essentially, DGE is looking at the unresolved criminal case of Isai Sheinberg, and the involvement of other Pokerstars execs in igaming post UIGEA. This leaves open the possibility that a restructuring of the company, or some other resolution that may satisfy the DGE, would allow the process to resume.

Debi · Dec 11, 2013

Yea Isai is going to have to step away if they want any chance at all.

horizon12 · Dec 12, 2013

All the matter is that the U.S. is still continuing federal investigation, when it's over, then begin negotiations about Licence ..I think two years is enough what to talks resumed..

themosthigh · Dec 15, 2013

This is a shame but I think we all knew this was going to be the case with regards to NJ and PS.

curtinsea · Dec 18, 2013

As much as players want to see Pokerstars come back to the US, the approach they are trying to take to gain entry into the US is one that is unlikely to ever be successful. Rather than trying to storm into the US market and dominate it, which would effectively leave all US gaming institutions on the sidelines, including the all-powerful tribes, they should have come in as a vendor. Had they taken the latter approach, they would have been making allies instead of enemies, and their platform would be spreading quickly across the country, instead of being fought against at every turn.