PokerStars looking to buy Atlantic City casino

[The Buzz]

In a move that might signal the company's intention to return to a regulate U.S. market, it appears that PokerStars is looking to buy an Atlantic City Casino for $50 million.

Considering it paid more than 10 times that much to acquire the assets of Full Tilt Poker, this would certainly be feasible for the online poker giant. And having a brick and mortar presence in the U.S. -- especially in New Jersey, as online gambling legislation is once again in the works -- would make it much easier to gain approval to operate online games for U.S. players.

http://www.bluff.com/news/report-pok...urchase-37994/

[vinism]

This is interesting news. Alexandra Berzon, the Wall Street Journal reporter who broke this story, is very good. So there's some substance to this. For those of you that know Atlantic City, PokerStars is targeting the Atlantic Club (formerly the Atlantic City Hilton and ACH). The hotel and casino is one of the smallest in Atlantic City. According to a very good newspaper report by John Brennan, prior to the news of the PokerStars deal coming out, the Atlantic Club had generated $109.7 million from Jan. 1 through Oct. 31. That places the Atlantic Club 10th among the 12 Atlantic City casinos in gaming revenue. And Revel, which has only been open since April, is only $3.5 million behind in terms of revenue through Oct. 31. Brennan's story also suggested Atlantic Club was a vulnerable operation.

The PokerStars deal is contingent on a couple of factors. The most obvious factor is New Jersey's online gaming legislation needs to pass. There is a decent chance that the New Jersey Assembly and New Jersey Senate will approve the online gaming legislation this year. If that happens, then it will be up to Gov. Chris Christie. He can veto it, like he did the last time. Or he can approve it. If he vetoes it, it might end still end up in front of the New Jersey voters because Christie's likely reason to veto it is the New Jersey constitution needs to be amended in order to allow gambling outside of Atlantic City.

The second factor, which nobody is talking about, is whether New Jersey regulators would approve PokerStars as a buyer. New Jersey has some of the toughest gaming regulators in the world. MGM is looking pull out of New Jersey (it owns part of the Borgata), because New Jersey regulators don't approve of their connections in Macau, while Nevada has no issue with it. Many current casino executives, legislators and others have been unhappy that PokerStars (and Full Tilt) continued to profit from what they thought was a closed U.S. market. If New Jersey gaming regulators take a dim view of PokerStars past behavior in the U.S., they can put the kibosh on this whole deal.

So this deal is nowhere close to being done. But that it's made it this far is certainly intriguing.

[TravG]

Wow, I can't 50 million will buy you a casino in AC. That just seems low but if the Atlantic Club has only generated 100 million I guess that is fair. I was just at the Revel a few weeks and it is a very nice hotel/casino but I hear they are on the verge of Bankrupcy. I like AC and it has come a long way in the last 10 years cleaning up the boardwalk and other parts of the town. I have casinos within an 1 hour drive but would rather go to AC any day of the week just because of the atmosphere.

[ocreditor]

Is it possible that real-estate prices came down post-Sandy on the Jersey Shore?
That might account for the low pricetag, to a degree.

[universal4]

Vin, concerning your quote

Atlantic Club was a vulnerable operation.

What are your feelings on that statement?

Did you take that to mean a hostile takeover?

Rick
Universal4

[maxima191]

wHY HASN'T pOKERsTARS start the process of a USA return I feel it would a breath of fresh air for players but the FTP Brand will never be welcomed back to the USA Market again