PokerStars Barred for Two Years from New Jersey

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Divisionof-Gaming-Enforcement-PokerStarsNew Jersey gaming regulators dealt a bad beat hand to PokerStars last week by suspending PokerStars’ gambling application and further barring the company from conducting Internet gambling in the state for two years.

The New Jersey Division of Gaming Enforcement cited an unresolved federal indictment against company founder Isai Scheinberg as the reason for the suspension.

“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 States following the enactment of UIGE,” the division said in a statement Wednesday.

The state said PokerStars can reapply sooner than two years if its circumstances change materially, but the state didn’t recommend specific changes.

“We are disappointed that the New Jersey Division of Gaming Enforcement has suspended the review of our application at this time,” spokesman Eric Hollreiser said. “We note that the DGE will resume the review of our application if our circumstances change. We will remain in open dialogue with the DGE and will update them on changes in our situation as they occur.”

After a troubled attempt to purchase the Atlantic Club Casino Hotel last year in part once again due to the state regulators, PokerStars partnered with the Resorts Casino Hotel for the anticipated Internet gambling offering.

New Jersey poker players have expressed disappointment with the decision, citing they have been experiencing difficulties logging on to the gambling websites currently available and low guaranteed prize pools.

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