Regulatory Approval Moves Amaya/PokerStars Deal A Step CloserJuly 30, 2014 3:22 pm
Following news of Amaya Gaming’s proposed acquisition of Rational Group for $4.9 billion, the Canadian gaming provider has announced it has now received all the regulatory approval required to proceed to the next step in the process involving finalization of the deal at a shareholders meeting on July 30th.
Generally, a company seeking to take control of an internet gaming business must first receive approval by industry regulators, in Amaya Gaming’s case involving dozen of jurisdictions worldwide where Rational Group operates, including the regulated European markets of Spain, Italy, France, Denmark, Belgium, Bulgaria and Estonia. In order to be approved Amaya would have first needed to provide regulators with its financial details and be deemed a suitable company by the regulators.
Not only is this process progressing smoothly, but Amaya also announced the Toronto Stock Exchange had already granted it conditional approval for the transaction and for the listing of new shares on the TSX. As an Amaya statement, explains:
“Amaya also announced that it has received conditional approval from the Toronto Stock Exchange regarding the proposed transaction and the listing of Amaya common shares issuable in connection with the planned financing of the proposed transaction, including those underlying warrants, subscription receipts and convertible preferred shares issued in relation to the planned financing.”
All being well, Amaya Gaming’s take over of the PokerStars and Full Tilt brands should be completed by the end September, heralding a seismic shift in the online poker industry. Although the European markets will continue to be of prime importance for the business, Amaya has indicated it has its sights firmly set on the lucrative US market, which it hopes to reenter following the departure of Isai and Mark Scheinberg from the Rational Group. Amaya ownership currently has a license application under review at the New Jersey Division of Gaming Enforcement, and is also actively lobbying to become part of a future Californian ipoker market.
After flaunting the UIGEA PokerStars found itself locked out of the USA, but the Amaya acquisition deal, as well as disappointing regulated online poker revenues stateside, means PokerStars’ return to the US is now likely just a matter of time.