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With word that publicly traded Amaya Gaming Group has agreed to the $4.9 billion purchase of PokerStars.com, the company will become the world’s largest online gambling business. It will also potentially help to usher in legalized online poker for the state of California.
State tribes are at odds as to whether PokerStars should be permitted to enter the market through a partnership with the Morongo Band of Mission Indians. Stars has been shunned by many influential groups in the US for its failure to exit the market after prohibition was passed in late 2006. Amaya, on the other hand, abided by US policy. As such, the deal is expected to pave the way for PokerStars and its sister site Full Tilt Poker to re-enter the US market, most likely via California.
Online gambling was considered illegal in the United States for many years, but a reinterpretation of a federal law known as the Wire Act by the Justice Department in December 2011 opened the door for individual states to legalize online bets, Chad Bray of the New York Times points out.
California is likely to be the next state to legalize Web poker following in the footsteps of Nevada, Delaware and New Jersey. The Golden State represents the 8th largest economy in the world.
The online poker platforms PokerStars and Full Tilt Poker, which are owned by the Rational Group, are collectively the world’s most popular and profitable online poker brands with more than 85 million registered players on desktop and mobile devices.
“This is a transformative acquisition for Amaya, strengthening our core B2B operations with a consumer online powerhouse that creates a scalable global platform for growth,” said David Baazov, CEO of Amaya. “Mark Scheinberg pioneered the online poker industry, building a remarkable business and earning the trust of millions of poker players by delivering the industry’s best game experiences, customer service and online security. Working with the experienced executive team at Rational Group, Amaya will continue that tradition of excellence and accelerate growth into new markets and verticals.”
Rational Group Founder and CEO Mark Scheinberg said: “I am incredibly proud of the business Isai and I have built over the last 14 years, creating the world’s biggest poker company and a leader in the iGaming space. Our achievements and this transaction are an affirmation of the hard work, expertise and dedication of our staff, which I am confident will continue to drive the company’s success. The values and integrity which have shaped this company are deeply ingrained in its DNA. David Baazov has a strong vision for the future of the Rational Group which will lead the company to new heights.”
- Aaron Goldstein, Gambling911.com
