When the state of New Jersey started issuing licenses to online gambling companies towards the end of 2013, most of the poker community expected PokerStars to be one of the first companies to be awarded its license. However, PokerStars the biggest online poker room in the world was not given a license and hence could not launch in the state of New Jersey.
PokerStars has taken the setback well and will do its best to get approval during 2014 to launch its operations in New Jersey as well as other states in the United States.
Towards the end of 2013, Eric Hollreiser, the Head of Corporate Communications for PokerStars’ released a blog post which confirmed that the company was serious about getting a license in New Jersey and is also on the lookout for setting up operations in other U.S. states.
PokerStars will continue to pursue our goals and remain confident that we will have a strong presence and positive economic impact in the American market in 2014, whether that is in New Jersey or another state seeking the benefits of being home to a world-class online gaming company
During the end of 2013, the New Jersey Division of Gaming Enforcement (DGE) confirmed that it had suspended PokerStars Internet gaming license application for up to two years. According to the DGE, the main reason behind the suspension was due to the fact that Isai Scheinberg, the founder of PokerStars founder is currently under U.S. federal indictment. Scheinberg is being investigated for apparently violating the Unlawful Internet Gambling Enforcement Act and Illegal Gambling Business Act. Another reason that did not go in favor of PokerStars was because its deal with the Atlantic Club fell through.
We continue to share the vision that online gaming will be a boon for New Jersey. Unfortunately, PokerStars is no longer in a position to help the Atlantic Club employees and the local economy in general. The continued delays in our regulatory review prevent us from entering the market at this time and bringing the marketing and operational investment we have planned for the past year. Those investments included establishing a U.S. office in NJ which would employ 250-300 people in the first two years and launching extensive marketing programs to energize our loyal customer base in the area and grow the online gaming market in the state.
We’ve delivered on similar commitments in newly licensed markets around the world and these investments and management practices established us as an industry leader and we’ve been recognized as a Great Place to Work in 2012 and 2013.