Its been a week of ups and downs and turn-arounds in New Jersey, the first coming with an update on the PokerStars and Atlantic City Club legal battles. After each filed suit against the other the decision was finally handed down and it looks like the it was not in the cards for PokerStars parent the Rational Group.
After the Rational Group failed to meet the deadline in the proposed agreement set by Colony Capital, the owner of the Atlantic Club Casino, both parties decided to get down and dirty with restraining orders and civil lawsuits.
All this “tit for tat” came about when PokerStars missed the deadline, Stars called foul and felt they were being taken advantage of with an $15 million investment going down the tubes.
Colony Capital played the ignorance card claiming they knew nothing of PokerStars involvement with “serious criminal activities more extensive and unresolved than previously disclosed,” this pertains to Black Friday and the involvement of
All this back and forth tug of war ended with PokerStars on their butts in the mud with hopes of attaining a foothold into New Jersey’s newly regulated online gaming market squashed, however temporarily.
But if you read a very detailed and convincing argument to PokerStars benefit, “PokerStars raised two primary arguments in its initial Complaint and Motion for TRO: a) Breach of Contract—claiming that the contract termination date was void pursuant to gaming laws requiring a 120-day window between submission of a gaming license application and the closing date for a casino purchase agreement, and b) Promissory Estoppel / Unjust Enrichment—claiming that the Atlantic Club knew the Division of Gaming Enforcement (DGE) would not rule on PokerStars gaming license application prior to the contract’s termination date, and yet the Atlantic Club nonetheless improperly misled PokerStars into believing the Atlantic Club had agreed to extend the deadline for PokerStars to obtain its license.“
In other online gambling news, Atlantic City gaming regulators released a draft of proposed regulations where it states that casinos are required to apply to the Division for an Internet Gaming Permit Application. This permit allows the casino ttto offer all types of casino gaming through an Internet casino site, as well as mobile gaming within their casino property and simulcast live-table gaming over the Internet.
Players 21 and older, this includes residents and non residents, must be registered and can only play within New Jersey with an authorized and verified password protected log in.
Deposits to player accounts can be funded through the onsite casino cage by cash, check, money transfer or with online deposits using a debit, credit or prepaid card, or a transfer from the player’s casino deposit account. Withdrawals must be first done as a credit to any credit or debit card used to deposit, up to the amount deposited.
The casino must hold all player account balances in a New Jersey bank account “independent from all other operating accounts of the licensee.” Casinos must pay the Governor Christie imposed 15% taxes on gross revenue (rake, fees, etc.). They also pay a permit fee of “not less than” $400,000 the first year and “not less than” $250,000 yearly thereafter, as well as a Responsible Internet Gaming Fee of $250,000 per year.
For poker players, W2-G reports currently are only required for tournament net winnings which exceed $5000. There is also a player protection and gambling awareness set of rules implemented that help to protect players.
And to round things up well turn all this over to J. Todd where he weighs in on “the drama in New Jersey between PokerStars and the Atlantic Club Casino drags on. Meanwhile in Nevada, Ultimate Poker hits its first snag.”