PokerStars and Caesars Now Allies In Pursuit Of US Online Poker

Home » Poker News » PokerStars and Caesars Now Allies In Pursuit Of US Online Poker

Friday, February 20th, 2015 | Written by Shane Larson

The chances of PokerStars returning to the US online poker market received a huge boost last week, after longtime opponent Caesars Entertainment said it was no longer pursuing a bad actor clause against the poker room, and had instead decided to throw its support behind the Amaya Gaming owned business when it comes to internet poker in the US. Commenting on the encouraging turnaround from its original stance, Caesars Executive VP of Governmental Relations Jan Jones Blackhurst told Gambling Compliance reporter Chris Krafcik:

“We need to focus on where our opposition really lies, and clearly it’s not Amaya and PokerStars. They are a strong ally in the space.”

As well as smoothing the way for a PokerStars return to California in the event poker legislation is eventually adopted in the state, Caesars and PokerStars’s new relationship will also positively impact PokerStars’ chances of being included in other states currently considering online gambling, such as New York and Pennsylvania, as well as the states where legislation has already been adopted, in particular New Jersey.

PokerStars “Cleansed Of The Taint”

In the past, Caesars may have been in favor of online poker and gambling stateside, but the company opposed PokerStars taking part in any regulated industry, especially as it views PokerStars as a potential threat to its products which already include the World Series of Poker brand, and online gambling site WSOP.com. Recently, however, Caesars started sending out conciliatory messages on the issue, such as indicating it was willing to compromise on the “bad actor” clause in California where iPoker legislation is being debated, before Monday’s revelation that it was now willing to ally itself with PokerStars as far as internet poker in the USA was concerned. As Caesars’ Jan Jones Blackhurst, explains:

“We no longer are seeking a bad actor clause in any state. With the purchase by Amaya, we believe PokerStars is cleansed of the taint and regulatory approval should be left to the regulators.”

Amaya And Caesars Enjoy Good Relationship

Caesars Entertainment Corp’s sudden change in attitude comes just one month after the company filed for Chapter 11 restructuring in a Chicago court with an $18.4 billion debt load, of which senior bondholders are owed around $6.3 billion of that amount. Just over a week ago, it was then announced Chief Executive Officer Gary Loveman would be replaced by former Hertz Global Holdings CEO Mark Frissora on July 1st. With these changes taking place within Caesars, as well as the change of ownership at PokerStars, Caesars now seems willing to work with PokerStars, especially as it already has an established relationship with its new owner, and highlighting this point Amaya’s Head of Corporate Communications, Eric Hollreiser, explained:

“Amaya and Caesars have enjoyed a very good relationship and business partnership for a number of years. That has not changed since acquiring PokerStars. As part of our ongoing conversations we will work closely with Caesars to promote the US online gaming industry and support responsible legislation at the state and federal levels.”

Useful Both On A State And Federal Level

Having two major gaming companies now working together is bound to have a positive impact on online gambling lobbying efforts and helping to craft legislation on both a state and federal level. Amongst the states who could become the initial beneficiaries of such an alliance are California, Pennsylvania, and New York where the inclusion of a “bad actor” clause supported by Caesars threatened to lock PokerStars out of any future regulated iGaming market. PokerStars could further see its license application to provide iGaming in the regulated state of New Jersey fast tracked, especially with Caesars’ objections now lifted, something that has previously succeeded in blocking PokerStars’ progress for endless months now.

In the meantime, while the prospect of online poker regulation being introduced on a federal level continues to remain dim, Amaya Gaming and Caesars’s combined efforts could help slow down any momentum gained by Sheldon Adelson and his anti-online gambling coalition in Congress, and the progress of his Restoration of America’s Wire Act (RAWA) reintroduced in the House of Representatives earlier this month by Jason Chaffetz (R-Utah). Summing up what impact Amaya and Caesars’ new alliance could have on the success of online gambling in the US, Hollreiser commented:

“We are working at both state and federal levels. It’s clear that a successful and competitive online poker market drives innovation and growth in the overall poker industry, which benefits everyone.”