NJ Suspends PokerStars Application, Leaves Them With Few Outs

Home » Poker News » NJ Suspends PokerStars Application, Leaves Them With Few Outs

Monday, December 16th, 2013 | Written by Adam Brown

PokerStars received another disappointing blow this past week.

Following the official launch of legal online poker in New Jersey, which PokerStars was not apart of, they received word from the NJ Division of Gaming Enforcement that their application was suspended for 2 years.

The application was suspended for several reasons, but primarily because of PokerStars ties with one time CEO, Isai Scheinberg, who was charged of violating several laws, including the Unlawful Internet Gambling Enforcement Act (UIGEA) and the Illegal Gambling Business Act.

Isai Scheinberg stepped down as CEO of PokerStars about a year ago. This was apart of the deal made with the Department of Justice to clear the charges set against (the companies) PokerStars and Full Tilt Poker. His role was filled by his son Mark.

However, Isai hasn’t dealt with the personal charges stemming from Black Friday. And that’s a problem for the DGE.

According to their press release:

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 UIGEA.

They also have a problem with “certain PokerStars executives,” whom happened to go unnamed.

But it’s not all doom and gloom. Many sites have been reporting that PokerStars has been banned or suspended indefinitely. That’s not entirely true.

In their statement the DGE mentioned that during the 2 year suspension that they “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 individual will be resumed to asses suitability.”

In short, if PokerStars can correct these issues and fulfill the requirements set by the Division of Gaming Enforcement, the application process can be continued.

There’s no word as to what will happen if the 2 years runs out. It’s not a situation that the DGE has dealt with before.

Hopefully it doesn’t come to that, for PokerStars’ sake. Many states are looking to New Jersey to see what’s possible with intrastate poker. If PokerStars can’t get licensed here, it’ll damn near be impossible for them to get licensed in other states.

On the bright side, keeping PokerStars at bay does give the other sites in New Jersey some time to establish themselves and earn some market share before the 800lb gorilla of online poker is released.