Cookies on the PokerWorks Website

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the PokerWorks website. However, if you would like to, you can change your cookie settings at any time.

Continue using cookies

Poker News | World Poker News

Is PokerStars out? Judge rules Atlantic Club casino can look for a new buyer!

Share this

The Rational Group, parent company of the world's biggest online poker site, took a beat on Friday when Superior Court Judge Raymond Batten gave the Atlantic Club casino the right to terminate the contract because the British parent company of PokerStars did not meet the deadline of April 26th for receiving New Jersey's preliminary approval to own a casino.

If Rational did not obtain state authorization by the April date, the judge's interpretation of the contract is that either party could end the deal. Along with the ruling, the judge dissolved the temporary restraining order that would keep the casino from selling to other interested parties. The Rational Group obtained the TRO when the Atlantic Club backed out of the deal after enjoying a big slice of Rational's payments to keep the casino afloat through last winter.

"We saved their butts," Wayne Positan, a lawyer for The Rational Group, told Batten. "And we got the short end of the stick." Positan said it was like the casino said: "Let's take that money and the heck with those guys. Ha, ha, ha."

According to testimony given in court, a provision in the contract specified a date for the deal to be completed and if the deal was not finalized, all money Rational advanced to the Atlantic Club could be kept by the casino in forfeiture. The advanced funds were credits against the $15 million purchase price.

The details of the deal were reached on December 24th, 2012, and the state Division of Gaming Enforcement began its evaluation process in early april when Rational's application was completed — the evaluation is known to be at least a three month process.

"They (Rational) took the risk they could get it done," Tariq Mundiya, a lawyer for the Atlantic Club lawyer, told the judge. "They couldn't get it done, and now they want to rewrite the contract. Once that date came and went, Your Honor, all bets were off."

The purchase price of $15 million for a casino is a small sum in today's market, especially when online gambling is a key factor in tomorrow's revenue plan, but The Rational Group also promised to cover a $32 million shortfall in the Atlantic Club's employee pension account along with the possibility of investing additional funds once the deal was completed of $20 million--$40 million in the property.

Rational is reviewing the decision and still has hopes of entering the New Jersey market according to a spokesman.

Michael Frawley, the Atlantic Club's chief operating officer, said after the ruling on Friday: "We are now free to build on the tremendous opportunity provided by online gaming."

It's time to follow PokerWorks on Twitter! And like us on Facebook to stay updated with poker news, events, and promotions.

News Flash

The IRS Scores Big at 2015 WSOP ME Final Table

The IRS managed to snag 34.13 percent from the payouts of the 2015 November Nine, totaling $8,467,091.

Read more

Quick Room Review

Bonus Room review

Subscribe to the Nightly Turbo

Be the first to know all the latest poker news, tournament results, gossip and learn all about the best online poker deals straight from your inbox.

RSS Feed