- “Rational Group remains entirely committed to resolving this situation and to our investment in New Jersey.”
- On Wednesday, Michael Frawley, COO of the Atlantic Club, issued a statement to New Jersey press stating that the purchase agreement with PokerStars had been terminated..
- The surprise turn of events comes just weeks after PokerStars completed its New Jersey application to receive a temporary license to operate gaming in the state, its success a condition of the Atlantic City deal.
PokerStars parent company Rational Group has asserted its continued commitment to the New Jersey gaming market, following the apparent collapse of its deal to purchase the troubled Atlantic Club Casino Hotel.
“In December 2012, The Rational Group (d/b/a PokerStars) entered into a purchase agreement for the acquisition of the Atlantic Club,” reads a statement a Rational Group spokesperson issued to pokerfuse late Thursday. “Several days ago the Rational Group received a purported notice of termination of this agreement from the current owners of the Atlantic Club.”
“It was the Rational Group’s expectation and understanding, based on the ongoing dealings between the parties, that the closing date would be extended to allow the transaction to be completed. The Rational Group remains entirely committed to resolving this situation and to our investment in New Jersey,” the statement concludes.
On Wednesday, Michael Frawley, COO of the Atlantic Club, issued a statement to New Jersey press stating that the purchase agreement with PokerStars had been terminated, adding only that it remained “... committed to the aggressive pursuit of the opportunities presented by online gambling.”
The surprise turn of events comes just weeks after PokerStars completed its New Jersey application to receive a temporary license to operate gaming in the state, its success a condition of the Atlantic City deal.
Following its application, New Jersey’s Division of Gaming Enforcement has a 90-day review period to assess Rational Group’s suitability, followed by a final 30-day review period by the New Jersey Casino Control Commission.
Without a casino to purchase, the application is moot.
As recently as late March, Frawley spoke of how happy the club was at the deal’s progress, and how the deal’s completion hinged only on the time the regulatory process takes.
“Right now, we are not a profitable casino,” Fawley stated in an interview with NJ Today. “With PokerStars, with Internet gaming, and the capital investment they’re prepared to make in the property, we expect to be more than profitable.”
He stated that Rational was committed to making an initial $20m capital investment, which would grow to over $40m over five years. He also added Rational had plans to invest in other places in the state.
The purchase of the Atlantic Club has drawn heated protest from the American Gaming Association, which represents many, but not all, of the United States’ largest casino/entertainment corporations. It publicly accused PokerStars of being a “criminal enterprise,” and has previously attempted to intervene in the PokerStars approval process by supplying separate briefs and documentation to New Jersey regulators.