In what appears to be a move to cash in on a very favorable atmosphere in New Jersey regarding online poker, one of the giants in the industry recently made a substantial move. PokerStars became a veritable white night when they bailed out the failing Full Tilt Poker franchise, appeasing millions of account holders by replacing their frozen funds, as well as making the United States Department of Justice happy. Their parent company recently agreed to buy the Atlantic Club Casino Hotel, a once thriving brick-and-mortar casino in New Jersey that is arguably now one of the weakest physical casinos in that state.

As an online poker titan, some may question the purchase of a physical casino in a state where online poker has not been approved. However, Governor Christie in New Jersey has always held a favorable stance on some type of online poker legislation. In 2011 he shot down a proposed bill that he said needed more work. And in 2012, he again turned down online poker legislation, but said that between the changes that were made in the previous bill and his personal belief that online poker is good for New Jersey, he could see it passing in the near future. Coupled with a bargain price tag, that favorable stance towards NJ online poker in the future made the purchase of the Atlantic Club Casino Hotel a no-brainer in the eyes of Rational Group, the parent company of PokerStars and Full Tilt.

Rational Group is headquartered on the Isle of Man in the British Isles, and they filed the appropriate paperwork with the New Jersey Division of Gaming Enforcement which is the first step toward seeking regulatory approval to buy the property. Michael Frawley is the casino’s current Chief Operating Officer, and he said in a joint statement with Rational Group just this week that the acquisition of the casino and hotel “will secure up to 2,000 jobs and maintain the economic benefits” that the property delivers to New Jersey residents and government. Under the agreement the Atlantic Club will continue to be operated by current management, which will also stay in place after the acquisition is completed.

The purchase price and further deal details were not disclosed, but word on the street in Atlantic City is that the property was obtained at a bargain basement figure. Most recently the Atlantic Club had been losing millions of dollars, and will benefit from an instant influx of capital from the Rational Group’s U.S. subsidiary. Rational Group stated that this was part of the deal so that the property could continue to maintain a level of financial stability which is required under New Jersey gambling law.

Rational US is the American subsidiary of Rational Group, which will be the new owner of the property. With a promise to return the Atlantic Club to its former glory, recent financials were disclosed. The property has struggled the last few years, suffering a $13.6 million gross operating loss for the first three quarters of 2012. Gambling revenue at the Atlantic Club fell a full 11% last year, to $127.2 million. 10th among the 12 Atlantic City casino hotels in total revenue in 2012, a turnaround is drastically needed. But do not believe that Rational Group has purchased such a struggling brick-and-mortar casino as a means of diversification from its online gambling endeavors alone. New Jersey will almost certainly legalize online poker in 2013, which will poise the new owners of the Atlantic Club to offer online poker to the residents of New Jersey, as well as their casino hotel patrons.