Other online gambling operators see Pokerstars as a threat, which is leading to attacks. The argument is that Pokerstars has an advantage against other operators since it has been in the industry for long. Lately it has received an attack on New Jersey licensing and by 888 Holdings.
Pokerstars attacked on New Jersey licensing
Pokerstars has been attached by Ron Dancer; an Assemblyman who is of the opinion that it should not be licensed to operate on the State. This is taking place as the company waits to be licensed to offer online poker in the State of New Jersey. It is only last week that a similar assault was given by Assemblyman Ralph Caputo.
Ron Dancer is making inaccurate and biased accusations on Pokerstars by saying that it is a “bad actor” because of its activities in the USA before Black Friday and as a result, it should be banned. Dancer is ignoring the settlements and large payments that Pokerstars made to the US officials without a requirement for admission of guilt. He is also alleging that Pokerstars was denied a license by New Jersey regulator last year, which is biased to the facts. The fact is that the regulator suspended for two years Pokerstars application until its circumstances and those of the parent group, Rational, changed.
The arguments of both politicians are similar and they have received support from racetrack and those with interests in land casinos. There is also an aspect of commercial protectionism. By claiming that the licensing of Pokerstars could be of damage to the market, Dancer seems not aware of the problems that land gambling operators in the State have been struggling with arising from competition from the neighboring states.
888 Holdings chief’s opinion on Pokerstars operations in the US
Pokerstars may start offering its services to the online Poker market in the US. This causing concerns by other operators in the industry such as 888 Holdings. The argument is that Pokerstars had been in market for a while before the shutdowns on Black Friday and therefore it may have greater advantage.
Brian Mattingley, the chief executive of 888 Holdings has said that despite Pokerstars advantage, his company and its partners are ready to compete with it. While being interviewed by Bluff.com, he said that although Pokerstars was professional, big and has good operation, he still had qualms about it being allowed to enter the States with legalized online gambling.
Mattingley has the opinion that Pokerstars should not just walk straight into the online-legalized markets just like the other companies. Despite that, the “bad actor” clauses that are excluding the Pokerstars are going too far. Mattingley propositions are that Pokerstars should be excluded for about one and a half to two years to negate the advantages it gained when operating from 2006 to 2011 in the US market.
It is clear that Pokerstars is facing challenges as it tries to penetrate the US online Poker market despite its change of hands from Rational Group to Amaya Group.