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New Jersey Republican Governor Chris Christie is being accused of preventing the world’s largest online poker room, PokerStars, from entering into a deal with Atlantic City’s Resorts Hotel and Casino and his relationship with casino mogul and GOP mega donor is being cited as the reason why.
PokerStars made plans to open a $10 million poker room at the Resorts Casino back in June 2013.
"Christie put a stop to it," said Democrat State Senator Lesniak of Union. "With a high degree of confidence it's apparent that's exactly what has happened."
Lesniak co-authored the bill that made online gambling in the state legal five months later. PokerStars was not among the sites permitted to operate in the Garden State.
Bob McDevitt, the president of Unite Here Local 54, the union that represents Atlantic City's casino workers, told Business Insider he believes the PokerStars license is being tied up by Christie.
"My impression was that PokerStars should have been already up and operating long before this point," McDevitt said. "My understanding is that it was the attorney general's office and the governor who are holding up the approvals."
Lesniak suggested it's common knowledge among those in Garden State gaming and political circles that the governor interfered with PokerStars' license.
"It's pretty well known," said Lesniak. "But I don't think anyone's going to go on the record to confirm it."
One unnamed source told Business Insider: "There is no question in my mind that Sheldon Adelson is the reason why this hasn't moved forward, and that's the only reason.”
PokerStars was acquired by Canadian-based Amaya Gaming last year, a move widely seen as a way of helping the site gain entry into a regulated U.S. online gambling market following a series of sweeping indictments in 2011. Stars was accused of accepting U.S. customers long after prohibition had been passed in 2006.
"PokerStars is one of the only gaming companies that has been actively committed to pursuing a position in the Atlantic City market. Everybody else is running away," McDevitt said. "So, why would we rebuff a company that wants to make a major investment in Atlantic City while everybody else is sort of backing off? I just don't understand it. It doesn't make any sense at all."
Lesniak went on to tell Business Insider why he believes Adelson is behind Christie’s reluctance.
"All I know is PokerStars was ready to go and then, all of a sudden, when Adelson started his campaign to ban online gaming nationally ... they put it on the back burner," he said.
Lesniak went on to say that PokerStars influence in New Jersey could lead to the state's congressional delegation fighting any federal online gaming ban, something that would draw the ire of Adelson.
A spokesperson for the Governor’s office denied the allegations, pointing out that Christie was the one who signed legislation allowing online gambling in the state.
"It’s a totally nonsensical argument, as Governor Christie signed the law to legalize online gaming in New Jersey. The DGE licensing review is an independent, technical process, the length of which varies case by case," spokesperson Kevin Roberts said.
But Lesniak insists any veto of the bill by Christie would have been overturned.
"Christie had no choice but to sign that bill," said Lesniak.
Perhaps the most damning evidence of any possible collusion between the Governor and Sheldon Adelson comes from the casino mogul himself.
"I talk to him," Adelson said. "He said he was about to be overridden anyway. He said it was about to be overridden or over-vetoed or whatever you call it. I like Governor Christie."
Democrat Assemblyman John Wisniewski, who is already looking into Christie’s potential role in a Port Authority scandal, took things one step forward, suggesting a criminal investigation might be in order.
"Is it in the legislature's interest to create a permanent, standing investigatory committee? Would we be doing that in suggesting that we continue an investigation into the Adelson issue?" Wisniewski asked. "Or are we better served by at least continuing to focus on the Port Authority and allowing law enforcement to look at that?"
- Gilbert Horowitz, Gambling911.com
