The world’s biggest on-line poker web page is attractive a judge’s ruling that cost it the ideal to purchase an Atlantic City casino.
The PokerStars website’s parent business, The Rational Group, had a deal to get The Atlantic Club Casino Hotel – and had currently paid $11 million of that to keep it afloat throughout the winter. But a judge final month let the Atlantic Club out of that deal, ruling that a deadline for Rational to obtain preliminary approval from state authorities to personal a casino had passed.
The Rational Group appealed that ruling this week.
“This is actually a matter of great public value, to the Atlantic Club’s workers, for the very regulated casino sector, to (state casino regulators) and to plaintiffs, who invested more than $11 million within the Atlantic Club in connection together with the purchase agreement,” Rational wrote in its appeal.
It mentioned the court contradicted the language with the state Casino Control Act as well as said a submission on behalf on the Atlantic Club by retired Superior Court Judge Steven Perskie really should not have been permitted to have been thought of. Perskie is often a former legislator who wrote the majority of the casino act.
PokerStars says Superior Court Judge Raymond Batten made several errors, which includes misinterpreting a time limit for getting the deal carried out. PokerStars says the 120-day deadline must have started in the day their application for state approval to run a casino was deemed full, not in the date with the sale contract.
The judge stated the contract clearly gave either celebration the correct to end the deal if Rational had not obtained the state’s authorization by April 26. The company’s application for temporary authorization to personal a casino was not deemed comprehensive by state regulators until early April.
The parties signed a contract Dec. 24 for The Rational Group to get The Atlantic Club for $15 million, by far the lowest price ever paid to get a casino in New Jersey. But it also promised to fund a $32 million shortfall in the casino’s employee pension account, and had discussed investing an extra $20 million to $40 million into the house after the deal was completed.
Atlantic Club lawyers mentioned it became clear this year that Rational would have a tough time obtaining a casino license in New Jersey.
The Rational Group agreed last year to spend $547 million to the U.S. Justice Division and $184 million to poker players overseas to settle a case alleging revenue laundering, bank fraud and illegal gambling. Rational admits no wrongdoing and says it can be in good standing with governments around the planet. Nonetheless, its recent history was expected to pose a hurdle towards the company’s efforts to win a new Jersey casino license.
In its appeal, Rational says The Atlantic Club knew of PokerStars history considerably earlier than the casino claims.
The Atlantic Club declined to comment Friday. A PokerStars spokesman would say only, “We remain committed to New Jersey and to contributing to its economy.”