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Poker News | Gambling and the Law

PokerStars Application Review suspended for two years by New Jersey DGE

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Nathan Vardi of Forbes ran an article today with the news that PokerStars' application for an online gambling license in New Jersey has been suspended for two years by the New Jersey Department of Gaming Enforcement (DGE).

“The Division of Gaming Enforcement has determined that the application of Rational Services Limited (PokerStars) casino service industry licensure (CSIE) will be held in a suspended status for a period of two years,” the New Jersey DGE said in a statement. “The Division, within that period, 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 individuals will be resumed to assess suitability.”

PokerStars founder Isai Scheinberg is still under federal indictment from Black Friday for violating the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act and that is one of the main reasons for the suspension in the DGE's statement. Scheinberg hasn't appeared in the United States to face charges against him by the U.S. Department of Justice.

“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, and the involvement of certain PokerStars executives with Internet gaming operations in the United States following the enactment of UIGEA,” the New Jersey DGE said in its statement.

Eric Hollreiser, Head of Corporate Communications for PokerStars, was contacted by and Hollreiser offered the following:

"We are disappointed that the NJ Division of Gaming Enforcement has suspended the review of our application at this time. We note that the DGE will resume the review of our application if our circumstances change. We will remain in open dialogue with the DGE and will update them on changes in our situation as they occur."

The state of New Jersey officially launched online gaming on November 25th with six casinos having received full license to operate in the state. Resorts Club Casino and PokerStars partnered in July in hopes of receiving a full license and being part of the online gaming launch. PokerStars pledged $10 million to build a new card room at Resorts Club Casino.

Check back for more news from PokerWorks as it develops.

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