PokerStars Blames Failure on Owners of the Atlantic Club In New Jersey

PokerStars Blames Failure on Owners of the Atlantic Club In New Jersey

Rational Group, which is the parent company of PokerStars, has blamed the shutdown of the casino-hotel Atlantic Club in New Jersey on the owners. PokerStars was ready to purchase the hotel-casino for $15,000,000 but the owners of the Atlantic Club backed out of the deal when Rational Group was a little too slow in getting state approval.

Now the Atlantic Club has been completely shutdown and was sold in a bankruptcy auction. Unfortunately, the purchasers are competitors and are closing down the project.

“It’s always sad when hardworking people lose their jobs, especially during the holiday season,” says a representative of the Rational Group. “This is particularly sad, though, because it simply didn’t have to happen. At this time last year, PokerStars reached an agreement that would secure a new future for the casino, save the jobs of 1,800 employees and inject new blood, new technology and new finances into the Atlantic City casino economy. As spring approached, the economic prospects for the Atlantic Club appeared to brighten even more with the newly-enacted iGaming legislation and the promise of summer tourism business on the horizon. That’s when the casino’s then-owners gambled with their employees’ future. In hopes that the improved economic picture could lead to more rewards for them, they walked away from our contract rather than wait another few months for the regulatory approval process to be completed. Now, the Atlantic Club will be stripped for parts and its employees will be put out onto the Boardwalk in search of new jobs in 2014. PokerStars does not share the vulture-like management practices that led to the coming job losses and disappointment of thousands of people in New Jersey with the closure of the Atlantic Club.”

PokerStars is looking into various states to get an online gambling license, including an online casino license in New Jersey.

It seems PokerStars and the Rational Group are very upset about how they advanced money to the owners of the Atlantic Club. In all, they sent over $11,000,000 of the $15,000,000 total price to purchase.

“We’re active in many states that are considering online poker and/or online gaming regulations, and are discussing opportunities as they arise and as legislation progresses,” said PokerStars spokesman Eric Hollreiser. Eric has said PokerStars still has a healthy business relationship with Resorts Casino Hotel (also in Atlantic City). PokerStars seems to be very optimistic about this project.

COO of Atlantic Club Michael Frawley was reached out to but gave a no comment.

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