PokerStars Issues Statement on New Jersey Court Ruling

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Monday, May 20th, 2013 | Written by Shane Larson

Last week we brought you coverage of the latest chapter in the saga of PokerStars’ attempt to purchase the Atlantic Club Casino.

After winning a temporary victory early in May, PokerStars was handed a defeat when a judge in New Jersey ruled that the ACC could break their deal with PokerStars and solicit other buyers.

PokerStars has now formally responded to that ruling. Their official statement on the lifting of the temporary restraining order was issued via the Twitter account of corporate spokesperson Eric Hollreiser.

The statement was brief (as Twitter statements tend to be) reading simply:

“RE TODAY’S NJ HEARING: We are reviewing today’s ruling. We remain committed to New Jersey and to contributing to its economy.”

Does PokerStars have additional options?

Without digging too deeply into the minutiae of New Jersey law, it does appear that PokerStars still has an array of legal options at their disposal. They can pursue additional action, appeal the ruling issued Friday or consider completely other routes to seek punitive damages against the Atlantic Club Casino.

Observers shouldn’t have to suffer too long of a delay before learning what PokerStars’ actual plans for dealing with the situation are. This has been a very fast-moving case over the last few weeks, and that pace should continue – if not accelerate – as PokerStars seeks to stop the ACC from selling their casino to another party.

What happened at the latest ruling?

The latest hearing was only focused on the temporary restraining order that was preventing the ACC from negotiating with parties other than PokerStars. A judge agreed with the ACC and lifted the order, meaning the ACC is free to discuss a sale with buyers other than PokerStars.

Quick background on PokerStars’ attempt to buy the ACC

While the story stretches back barely half a year, the ongoing story of the attempt by PokerStars to purchase the ACC contains more twists and turns than sagas spanning far longer periods.

The story begins back in September of 2012, when representatives from the ACC and PokerStars first formally discussed the possbility of a sale. Those talks evolved into a term sheet signed in October of 2012, and a more formal deal developed and executed in November of 2012.

While PokerStars – which is popular among players for a wide range of features such as Mac compatibility and mobile poker options – was pursuing a deal with the ACC, they were also starting the process of applying with the New Jersey Division of Gaming Enforcement. Initial reports indicated that PokerStars submitted their application with the DGE in December of 2012, but it was later reported that a completed application wasn’t actually submitted until April of 2013.

The deal appeared on track – at least from PokerStars’ point of view – even as licensing delays emerged. But the Atlantic Club took a different view, notifying PokerStars of their intent to terminate the contract due to PokerStars’ inability to secure a license by a deadline stipulated in the parties’ agreement.

PokerStars sued the ACC to force compliance with the contract. An initial ruling supported PokerStars’ position, but the most recent hearing reversed that decision and left the ACC able to pursue a sale to another buyer.