The United Kingdom may well become the first jurisdiction the state of New Jersey is to partner to share online poker liquidity with. Numerous reports based on an original article by Global Gaming Business have emerged, saying that gambling regulators from the Garden State have discussed the matter with their UK colleagues and have agreed on shared liquidity among online gambling operators legally providing poker in both jurisdictions.
New Jersey is one of three US states to be offering online gambling options within their borders. As for the UK iGaming market, it has been among the first ones to become regulated and currently features one of the largest player pools not only in Europe, but around the world.
The websites that have been licensed to provide online gambling offering in both jurisdictions include Betfair, 888 Holdings, GVC Holdings and its partypoker brand, Gamesys, and PokerStars. All these have been sent a letter from the New Jersey Division of Gaming Enforcement, calling to voice their opinion on the potential a shared liquidity agreement holds for the local gambling market. Operators have up until August 1 to do so.
David Rebuck, Director of the New Jersey gambling regulator, pointed out that talks about online poker liquidity sharing are in their initial stage. Yet, the official noted that if the plan is eventually materialized, the local market will enhance greatly its exposure as it will be allowed access to its already gigantic and constantly growing UK counterpart.
Mr. Rebuck explained that the initial agreement with the UK Gambling Commission and the operators’ letters are only the beginning. He also pointed out that regulators will have to cope with numerous issues related to taxation (the two jurisdictions tax online gambling operations in a totally different manner), geolocation, players’ ID, and many more.
New Jersey legalized the provision of iGaming options in 2013. Under the state’s current gambling laws, game servers should be located in Atlantic City, the only place that offers casino gambling within the state’s borders. It is still unclear whether that requirement would be dropped, in case shared liquidity is established between New Jersey and the UK.
People with knowledge of the matter have also pointed out that the current status quo may change after the November 2016 ballot when state residents will be casting their votes on whether two casino resorts should be built in North Jersey, thus breaking Atlantic City’s long-standing monopoly.
If the game servers requirement is not changed, actual player pooling between the UK and New Jersey would not be possible. Under the state’s present gambling regulations, in case of liquidity sharing, UK-based players will be able to access New Jersey online poker sites.
Here it is important to note that the agreement involves only poker operations. Mr. Rebuck pointed out that if the liquidity sharing partnership proves to be feasible enough, it would be extended into online casino games.
Although both New Jersey and UK gambling regulators have taken the first step towards a long-term player pooling agreement, it will take some time before their plan materializes, if ever. Yet, one thing could be said with almost complete certainty – this is not likely to happen before the end of 2016 due to the fact that regulators have a number of important issues to find solutions for before proceeding.
