The American Gaming Association (AGA) filed a brief with the New Jersey Casino Control Commission and Division of Enforcement on Monday expressing its opposition to PokerStars‘ parent company’s petition for Interim Casino Authorization (ICA). Rational Group, which owns Stars, filed the application in January after entering into an agreement to purchase Atlantic City’s Atlantic Club Casino Hotel from Resorts International.

In the 24-page brief, the AGA cites PokerStars’ continued operation in the United States after the passage of the Unlawful Internet Gambling Enforcement Act in 2006 and subsequent civil forfeiture against it by the U.S. Government in 2011 as reasons for not allowing PokerStars’ ownership group to become licensed.

The AGA minced no words, saying, “The ICA is designed to expedite conditional licensing of qualified licensees, not open the door into New Jersey’s gaming industry for applicants who cannot meet the law’s standards for integrity and honesty. Any action allowing PokerStars to be licensed would send a damaging message to the world of gaming, and to the world beyond gaming, that companies that engage in chronic lawbreaking are welcome in the licensed gaming business. That message would dramatically undermine public confidence in gaming regulation and could cripple the industry’s public image for many years.”

The AGA’s membership includes many land-based casino companies such as Boyd Gaming, which owns the Borgata in Atlantic City; Caesars Entertainment, which owns four Atlantic City casinos; Las Vegas Sands; MGM Resorts International; and Churchill Downs.

PokerStars has responded to the AGA’s complaint, telling media outlets, among other things, “These are matters for expert regulators to determine, not self-interested partisans picking a public fight. The U.S. Department of Justice has said PokerStars is suitable to apply for a license in the U.S. and saw fit to give us the assets of our largest competitor and entrust us to compensate their customers outside of the U.S.”

Many in the poker community agree with PokerStars’ assessment. On the Two Plus Two poker forums, comments included “Slimy, dirty, and purely self-interest bull.” One poster added, “This isn’t just about NJ, this is about the AGA attempting to establish its membership as the only ones worthy of being trusted to serve i-gaming in the U.S.”

Others looked at arguments on both sides of the coin. One commenter noted, “There is a lot of talk about fairness, but remember this: PokerStars built its advantage in the industry by flouting U.S. law for years while the casino interests here stayed away from the illegal enterprise.”

In a bit of a twist that may be of interest to those on the PokerStars’ side of the issue, Nathan Vardi of Forbes reported on Tuesday that Caesars Entertainment contacted PokerStars about a business deal back in February. PokerStars spokesperson Eric Hollreiser told Forbes, “Caesars Entertainment approached PokerStars and offered to sell us certain assets, such as the Rio Casino in Las Vegas. Caesars suggested that this acquisition would give us a better relationship with Caesars and would help PokerStars gain a license in Nevada.”

He added that PokerStars declined because it was already in the process of buying the Atlantic Club and did not want to purchase another casino “in the near-term.”

Now, Caesars and PokerStars could be headed for a battle in the online gaming space in New Jersey, as Governor Chris Christie just signed a bill into law that makes internet gambling legal in the state.

PokerStars, the world’s largest online poker operator, will likely apply for a gaming license and go head-to-head in New Jersey with Caesars, which controls much of the brick-and-mortar gambling in Atlantic City. Unless PokerStars adds gaming products, though, it would probably only offer poker, while Caesars could offer an array of games to New Jersey residents.

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