stars in us slightly more likely

[!Luck]

http://www.onlinepokerreport.com/126...-and-analysis/

Will this deal allow the PokerStars brand / software to enter New Jersey?

On face, the answer appears to be yes.
DGE director David Rebuck provided the following statement to John Brennan at NorthJersey.com:

“The Division is aware that current New Jersey authorized Internet gaming provider, Amaya Gaming Group, is acquiring the assets of PokerStars. Regulatory integrity is always paramount to the Division and we will review all aspects of this acquisition to ensure compliance with our high regulatory standards. We are also encouraged by this development and the expanded opportunities it might provide for New Jersey’s Internet gaming industry.”

When the DGE announced the decision to suspend PokerStars’ NJ application in December, they also laid out the roadmap for Stars’ return. Key excerpt:

The Division’s determination is based primarily on the unresolved federal indictment against Isai Scheinberg for the alleged violation of federal gambling statutes, namely, the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA), and the involvement of certain PokerStars executives with Internet gaming operations in the United State following the enactment of UIGEA.

As this deal sees all previous owners of PokerStars – including Isai Scheinberg – exit the company in the transition, it would appear to satisfy the DGE’s call for divestiture by Scheinberg and “certain PokerStars executives.”
David Rebuck, head of the DGE, has previously referred to the decision to suspend PokerStars’ license application as “a tough one” and that the PokerStars product was “better than anything we’ve tested elsewhere” in comments to GamblingCompliance.com.
Baazov said that PokerStars would be able to be operating in NJ within “a short time” following DGE approval.

[Keith]

I reckon that its a lousy deal for rest of the world players. "stars" is now saddled with 2.9bn dollars of debt which needs to be serviced.Along with a another $2bn of equity . those new shareholders are going to be looking for a return. I can't see how they can do it and maintain player rewards as they are and/or rake. Also since they own ongame are we likely to see some sort of essence vip program introduced.

[80108]

I am failed to see How this gonna help American players. Even if stars get license in one or two states, they will be playing with players of that states only. and also I do not think they will be changing their VIP program. It is one of best in industry.

[Eric]

I am failed to see How this gonna help American players.

I don't think it helps much in the short run. The long run is another story - this helps as certain people will no longer be with the company.

[dhubermex]

It has to do with "Bad Actor" language that is included in some state-wide legislation (not New Jersey). Bad Actor clauses exclude certain operators, executives, software and other peripherals from entering specific regulated US markets within a stipulated time frame following legalization.

Bad Actors refer to unlicensed online gaming operations that were offered in the US after a certain cutoff date--typically December 31, 2006 (a couple of months following passage of UIGEA). This cutoff date is hotly debated by opposing interests in the i-Gaming industry and is considered anywhere from legitimate to arbitrary depending on which side is offering an expert opinion.

I've personally listened in on the Amaya Gaming conference call from a week ago, in which Amaya's CEO David Baazov referenced Rational Group's eventual entry into the US. It will be very interesting to see how it all plays out and in what time frame.

80108: You're right. For now, Stars (if the company eventually becomes licensed to operate in one or more US states) would indeed be participating in state-only market(s) with no shared liquidity. They would essentially be operating in roped-off US jurisdictions unless current laws are modified to allow shared liquidity among licensed US operators.

As far as the VIP program goes, PokerStars Director of Poker Room Operations Steve Day has already communicated that the VIP program will be reviewed for 2015. This is mentioned in a published trip report of a meeting that took place on the Isle of Man with some player representatives.

There is certainly some pressure within the industry to modify current laws to enable shared player pools within the US, and 888 Poker executive Brian Mattingley recently stated he welcomes Stars' entrance into the licensed US market because he believes it would benefit the US i-Gaming industry as a whole.

As Keith suggests, there is some fear among players that significant changes will be made to the current PokerStars VIP structure. One of the options discussed during the Player Representative meeting was reducing benefits for high-level players and using the rewards surplus to attract casual players. No official announcements regarding the upcoming changes have been released yet.