In major breaking news, Forbesis reporting that the New Jersey Division of Gaming Enforcement is suspending “the review of PokerStars’ application for an online gambling license for two years, locking the world’s biggest online poker company out of the largest state to regulate online gambling.” After a failed takeover of the Atlantic Club, PokerStars partnered with Resorts to offer real money online gambling in July.

According to Forbes, New Jersey officials rationalized, “The Division’s determination is based primarily on the unresolved Federal indictment againstIsai Scheinberg for the alleged violation of Federal gambling statutes, namely the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA), and the involvement of certain PokerStars executives with internet gaming operations in the United States following the enactment of the UIGEA.”

Scheinberg was one of 11 individuals indicted on Black Friday and faces charges of conspiracy to violate the UIGEA, violating the UIGEA, operating an illegal gambling business, conspiracy to commit bank fraud and wire fraud, and money laundering conspiracy. Scheinberg reportedly stepped down from the company in mid-2012following PokerStars’ acquisition of its longtime rival Full Tilt Poker.

There could be some movement on PokerStars’ application within the two-year window, however. Forbes and DGE officials explained, “The Division, within that period, may consider a request for relief to reactivate the application if significantly changed circumstances are demonstrated, at which time the Division’s investigation of PokerStars and its affiliated entities and associated individuals will be resumed to assess suitability.”

PokerStars’ Eric Hollreiser commented to Forbes, “We are disappointed that the New Jersey Division of Gaming Enforcement has suspended the review of our application at this time. 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.”

Twitter was on fire with the news shortly after it broke, with Dave Behr commenting, “I see today’s sky that’s falling is ‘no PokerStars.’ Guess I can’t play online poker in NJ now? (The market will adapt just fine.)” New Jersey native Mike Gags30 Gagliano chirped, “I just hope [PokerStars] gets into NJ some way or another.”

Poker news veteran BJ Nemethassessed on Twitter, “It’s a little strange how many people in the poker world think PokerStars is the only company that can save online poker in the U.S.”

New Jersey’s legal and regulated internet gambling sites launched last month and include Borgata Poker, WSOP.com, PartyPoker, 888, and Betfair. Every site must be affiliated with a brick-and-mortar casino in order to operate, hence PokerStars attempting to work with Resorts.

Discuss by commenting here or visiting PocketFives’ New Jersey poker community.

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