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APNewsBreak: Licensing talks for PokerStars buyer

By WTOP Staff

WAYNE PARRY
Associated Press

ATLANTIC CITY, N.J. (AP) — A Canadian company buying the PokerStars website will begin licensing talks with New Jersey casino regulators aimed at letting the world’s largest Internet poker site operate legally in the state, the state’s top casino regulator said.

The state Division of Gaming Enforcement will begin the talks Thursday with Amaya Gaming Group, which is buying PokerStars and Full Tilt Poker for $4.9 billion, division director David Rebuck told The Associated Press.

Most importantly, the sale involves PokerStars executives charged with fraud and money laundering resigning from the company. That would appear to clear the way for PokerStars to enter the New Jersey market, something it had tried twice to do before the state suspended it for up to two years, citing the unresolved indictments against the executives.

“We’ve had discussions with Amaya to reactivate the application, and we plan to begin discussions with them tomorrow,” Rebuck told the AP on Wednesday. “We’ll look at whatever they bring over.”

He said he was “encouraged” by the sale and the licensing talks.

“I think in the long run it will be a good story for New Jersey,” he said. “I’m optimistic that they know what the rules are, and I fully expect them to be very aggressive because they want to be here.”

Internet gambling has hit a wall in New jersey after just six months. The Atlantic City casinos’ online operations posted revenue declines for the past two months.

Since the launch, the casinos have won about $61.9 million online, a far cry from the pace some state political leaders expected. Republican Gov. Chris Christie had estimated they would rake in $1 billion in the first year. Many Wall Street analysts have reduced their estimates to the $200 million to $300 million range, but even those may need to be adjusted downward.

The entry of PokerStars could provide a jump-start to the nascent industry in New Jersey.

Amaya, which has already been approved for Internet gambling operations in New Jersey as the platform for Caesars Interactive, is optimistic about its chances for the PokerStars approval, company lawyer Marie Jones said.

“They are optimistic they will get this done quickly,” she said.

No documents have been filed, but Jones said she expected a licensing application to be submitted by next week. Rebuck said he could see Amaya getting approval to operate PokerStars in New Jersey by the fall.

PokerStars tried to buy the Atlantic Club Casino in Atlantic City before that deal fell apart. The casino shut down in January.

PokerStars then partnered with Resorts Casino Hotel, which has been unable to offer Internet gambling while PokerStars was under suspension in New Jersey. A PokerStars spokesman had no immediate comment, and Resorts declined to comment.

The website operated in the U.S. after online gambling was banned in 2006 but exited the U.S. in 2011. It paid a $547 million fine to the Department of Justice but didn’t admit wrongdoing.

In a note to investors on Monday, Fitch Ratings called PokerStars’ re-entry into the U.S. gambling market “a game-changer.”

“The return of the exiled poker giant would inhibit the online poker ambitions of big U.S.- based operators such as Caesars Entertainment, Boyd Gaming and Station Casinos,” it wrote. “PokerStars, with its Full Tilt unit acquired in 2012, commanded roughly 70 percent of the U.S. market until authorities shut the sites down in 2011.”

New Jersey is one of three states that legalized Internet gambling, along with Nevada and Delaware. But as many as 10 others are considering or recently have considered joining the online market.

___

Wayne Parry can be reached at http://twitter.com/WayneParryAC

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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