PokerStars Loses Court Bid to Extend Atlantic Club Deal
Following the ruling of a judge in the Atlantic County Superior Court, PokerStars will not be able to keep alive its attempts to purchase the Atlantic Club Casino Hotel in Atlantic City. Last December PokerStars agreed to buy the casino which would serve as its entrance point into the US online gambling market.
The property’s owner, Colony Capital LLC, refused to extend the contract with PokerStars when it expired last month. The judge’s decision has been confirmed by both PokerStars spokesman Eric Hollreiser and Atlantic Club spokeswoman Cathleen Kiernan.
PokerStars had already invested $11 million in the casino as part of the deal.
The money was used to keep the casino functioning while the deal was finalised.
However, the deal was terminated on April 26th and Colony has asked for the remaining $4 million of the purchase price as a termination fee.
PokerStars parent company has said that it believes the deal was terminated in order for Colony Capital to sell the property at a higher price following New Jersey’s online gambling legislation.
In a statement the Atlantic Club Chief Operating Officer, Michael Frawley, said, “We are pleased that the New Jersey court has dissolved the restraints it entered on May 6. We are now free to build on the tremendous opportunity provided by online gaming.”