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New Jersey gaming regulator puts on hold PokerStars license

December 21, 2013

New Jersey is one of the gambling states in the US that has recently launched its online gaming market. However, state and federal laws in the US are being one of the main problems in the country, as the states tend to administrate themselves for lack of resources from the Federal government; these factors are pushing these new gaming states to take no notice of what the federal laws have done to the success of the online gambling industry. After two weeks of operations, the New Jersey online gambling market is now suffering the consequences of the outdated federal laws.

This time, Poker Stars has to face both, federal government and state, in a case brought up but the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA), laws both that are preventing the online gaming industry to accomplish its goals. New Jersey’s Division of Gaming Enforcement (DGE) has decided to suspend PokerStars application for a two years long license based on the allegations against PokerStars founder, Isa Scheinberg, who violated the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA).

New Jersey's state gambling regulator has decided to stop the licensing process based primarily on this unresolved federal prosecution against PokerStars founder. In addition, the allegations are also linking other PokerStars executives with illegal gaming operations in Internet after the UIGEA was established. New Jersey’s Division of Gaming Enforcement (DGE) spokesperson Lisa Spengler said: "The DGE has determined that the application PokerStars casino service industry licensure will be held in a suspended status for a period of two years. New Jersey’s Division of Gaming Enforcement, within that period, may consider a request for relief to reactivate the application if significantly changed circumstances are demonstrated at which time the Division's investigation of PokerStars and its affiliated entities and associated individuals will be resumed to assess suitability". PokerStars spokesperson Eric Hollreiser said: "The firm is very disappointed with the suspension, but remained in open dialogue with the DGE. 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."

 


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