When insider trading allegations were leveled against Amaya CEO David Baazov, some believed that it would throw a proverbial monkey wrench into the efforts to bring PokerStars to California.
Originally, it was thought that the Pechanga Coalition would be the ones most vocal over these allegations, but now it appears that there’s some dissension within the PokerStars Coalition.
According to a recent report on OnlinePokerReport.com, there are some concerns by some within the PokerStars Coalition over the recent charges.
Valbuena Not Alone in Concerns Over Insider Trading Charges
A couple of weeks ago, Assemblyman Adam Gray met with tribal leaders for multiple California tribes.
During that meeting Chairwoman Lynn Valbuena of the San Manuel Band of Mission Indians voiced her concerns over the charges levied against Baazov.
She stated that the tribe had “deep concerns” and were conducting an investigation into the matter. Valbuena did not appear alone in her concerns as six other council members in attendance appeared to also have the same concerns.
Valbuena’s statement was a bit of a surprise to everyone in the PokerStars Coalition, not because of what she said but because it was unsolicited.
Her concerns are clearly understandable as anyone connected to PokerStars would naturally want answers, but there may have been a better time or venue to express those concerns.
Recent Charges Stalling Progress
As expected, these recent allegations have been used as a new roadblock to regulating online poker in California.
According to Robyn Black, a lobbyist for the horse racing industry in California, progress was indeed being made towards a consensus on an online poker bill.
However, the recent charges “kind of threw everybody back” and it is uncertain as to the future of the bill. According to lobbyist David Quintana, “They [meaning Amaya/PokerStars] are even dirtier than we thought they were.”
New Jersey Appears Unconcerned Thus Far
If there is one bit of positive spin we could put on this issue, it is that the NJ Division of Gaming Enforcement thus far seems to be siding with Amaya in this matter.
Recently, the DGE extended Amaya’s license to operate in New Jersey by six months. The order was signed at the end of March to extend the company’s Transactional Waiver, meaning that PokerStars NJ is guaranteed to run until later this year.
It seems obvious that the DGE would not have extended Amaya’s license if it had proof that the allegations were true. After all, the DGE did conduct its own investigation into the purchase of PokerStars and any evidence of insider trading should have come up during that time.
Those looking for a silver lining in the current dark cloud hanging over PokerStars could use this filing as such. PokerStars NJ continues to be the #1 online poker site in NJ following their successful launch late last month.
PokerStars NJ is presently averaging 170 cash players daily with a peak of around 380 according to PokerScout.