Amaya Gaming Group Purchases PokerStars for $4.6 Billion

Back in May, there was a merger deal being rumored between the Amaya Gaming Group and the Rational Group. After a couple of weeks of speculation, we finally have an answer and it will change the poker industry.

Late last night, a deal was announced between the Amaya Gaming Group and Oldford Group Limited that will see Amaya purchase all outstanding shares in the company for $4.9 billion. The Olford Group is the parent company for The Rational Group, meaning that PokerStars and Full Tilt Poker are officially under new ownership.

Under the terms of the agreement, Amaya will acquire all assets related to the Rational Group which includes PokerStars, Full Tilt Poke, all related live and online poker tours and television properties. The Rational Group's executive management team will be retained and both online sites will continue to run without interruption.

One key line item in the agreement involves PokerStars founder and CEO Mark Scheinberg. Under the terms of the deal, he must dispose of all stock in Olford Group and subsequently resign as CEO once the transaction has been completed.

This last line item is huge for New Jersey. One of the primary objections stated by the New Jersey Division of Gaming Enforcement when they suspended PokerStars' application last year was the continued involvement of Scheinberg with the company.

While the suspension of the application was slated for two-years, "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."

Also, keep in mind that Amaya is already licensed in New Jersey. The question now remains whether the DGE will piggyback PokerStars onto their existing license, reopen the application process or even start over.

Amaya CEO David Baazov addressed investors during a conference call on Wednesday and shared his optimism to PokerStars being reintroduced into the US in short order. He stated, "Rational does not currently operate in the United States, and we anticipate that Amaya's track record in the United States has the potential to facilitate a speedier entry of the Rational's brands into the US, an entrance that would certainly be welcomed by players."

Keep in mind that PokerStars and Full Tilt Poker are not the only gaming platform offered by Amaya. They also own the Ongame Network and could reasonably use that platform in states that are still uncomfortable or unwilling to allow PokerStars entry.

With the acquisition of Rational Group, Amaya becomes the top gaming company in the world. The question now isn't whether this investment will pay off for the company, but rather how soon PokerStars will be offering games in legalized US markets.