PokerStars Out of Atlantic Club Purchase

Atlantic City gaming has a history of interesting owners, some of which went on to other states, and some of which were forced to sell their holdings because they were to chummy with know Mobsters. It happens, in virtually every gaming jurisdiction. However, in a confusing twist this past week, PokerStars was left with nothing to show for their $11 million advance to the owners of the Atlantic Club in New Jersey after their purchase agreement expired. The Atlantic Club has struggled for years to turn a profit in the dismal market that is now Atlantic City gaming, even with a host of new owners. The latest deal, one that would bring online poker giant PokerStars into the US market, was seen as a chance for some resurgence in AC as well as a foothold for online poker on US soil. Instead, using a decidedly New Jersey-style business attitude, the current ownership of the Atlantic Club took the $11 million advance and left PokerStars with nothing.

Don't get me wrong, the Atlantic Club had the right to end the purchase agreement when PokerStars parent, The Rational Group failed to get preliminary approval for a gaming license, but considering the economic conditions of both Atlantic City itself and the the poor record of the Atlantic Club, you would think an extension, perhaps with a penalty, would be in order. But not today. Not at the Atlantic Club.

The $11 million loss is a drop in the bucket compared to the annual income PokerStars earns, so I won't worry about their future, but it would have been nice to have some deep pockets on the Boardwalk. As for the Atlantic Club, that $11 million will allow the casino to stumble along for another year before it again needs an infusion of cash to avoid bankruptcy. Way to go Atlantic Club, your future is, well, it's in the future. How far in  the future remains to be seen.

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