PokerStars Wins Delay in Casino Battle
Last Monday a judge agreed to temporarily block the investment firm Colony Capital LLC from terminating a casino-sale agreement with PokerStars.
The New Jersey Superior Court judge issued the restraining order which prevents Colony from negotiating with other companies to sell the Atlantic Club Casino for 10 days.
There will be a second hearing on May 17th when the judge will consider extending the restraining order.
Last autumn PokerStars agreed to buy the Atlantic Club Casino and were hoping to use it to enter the online poker market in the state. A price of $15 million was agreed which included $11 million of advances which PokerStars has already paid to Colony in order that the casino could continue operating while PokerStars awaited approval from New Jersey regulators.
However, the deal said that PokerStars must receive an interim license by April 26 and when regulators said that it will take a further three months to consider PokerStars’ application it threw the deal into question.
Last week Colony said that the purchase agreement has been terminated, however, PokerStars responded with a statement declaring that it would continue its efforts to acquire the casino.