Published on December 12, 2013 by April Gardner

PokerStars the company may have reached an agreement to avoid further action by the US Department of Justice, but the company's founder, Isai Scheinberg, is still wrapped up in an indictment of his own, and that has turned out to be big trouble for PokerStars.

On Thursday, PokerStars was denied their request to obtain an online gambling license in New Jersey. Regulators cited the ongoing legal battles of Scheinberg when they announced that they would not be extending the license to PokerStars.

"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, and the involvement of certain PokerStars executives with Internet gambling operations in the United States following the enactment of UIGEA," said regulators, in a statement.

The biggest blow from this week's decision may come to Resorts Casino Hotel, the potential partner of PokerStars. Resorts had been issued a license, but now has no company to operate an online casino. The company, for the moment, is standing by PokerStars.

"We are disappointed that PokerStars was not issued a license," said Resorts President Mark Giannantonio. "We are hopeful that they can resolve their issues with the DGE in an expeditious fashion."

PokerStars has not yet committed to making changes to their structure in order to gain the New Jersey Internet gambling license. They did, however, offer some insight into their future plans.

"We are disappointed that the New Jersey Division of Gaming Emforcement has suspended the review of our application at this time," said PokerStars Spokesman Eric Hollreiser. "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."

Regulators suspended the application for a period of two years.

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