New Jersey, Nevada, and Delaware, the only three states where the provision of iGaming services is legal, have signed a shared online poker liquidity compact, New Jersey Gov. Chris Christie announced on Friday. It is still unknown when exactly the three states will be able to merge their poker player pools.
Online gambling has been illegal in the United States since the implementation of the Unlawful Internet Gambling Enforcement Act of 2006. Under the aforementioned law, it is up to each individual state to determine whether iGaming services should be legalized within its borders. Multiple states have considered the move, but it has been only New Jersey, Nevada, and Delaware to have eventually adopted legal frameworks that allowed Internet gambling operations.
Online gaming websites were launched in the three states at approximately the same time in 2013. However, online poker in particular has failed to grab a significant market share in the three jurisdictions. In 2015, Nevada and Delaware entered a shared liquidity agreement in a bid to enlarge their online poker markets and give players from each state increased gaming opportunities.
Reports emerged earlier this year that officials from New Jersey and the other two states have been discussing the possibility to sign a shared liquidity compact. David Rebuck, Director of the New Jersey Division of Gaming Enforcement, confirmed in July that there have been such talks.
Who Will Benefit the Most from the Move?
It should be noted in the first place that players from the three states will be able to participate in larger pools and to win bigger prizes, or at least this should be the main goal of the whole scheme. In addition, the online poker markets of the three states have not been particularly profitable in the years after their launch and it is believed that the latest shared liquidity compact could give them the much-needed boost.
Caesars Interactive Entertainment’s (CIE) WSOP online poker brand will probably benefit the most of all the operators servicing players in Nevada, Delaware, and New Jersey. The WSOP already participates in the Nevada-Delaware shared liquidity scheme and the operator also provides online poker in New Jersey. Owner CIE issued a statement on Friday to show its support for the recently penned agreement.
As for PokerStars, which currently holds the biggest chunk of New Jersey’s online poker, it will probably not be able to join the shared liquidity network as it is prohibited from operating in Nevada. The state’s online gambling laws contain a “bad actor” provision that bars operators that have been found to have violated UIGEA in the past from servicing local players.
When Will Operators Be Able to Share Liquidity?
While the terms of the agreement between the three states may have been negotiated and signed on, it will probably take months before operators are able to merge their player pools. Gambling officials from Nevada, New Jersey, and Delaware pointed out that the technical specifications first need to be sorted out. Technical teams from the three states have begun working on the task but it requires time to be completed.
WSOP said in its Friday statement that it will certainly take advantage of the opportunities the agreement has opened, but will begin sharing liquidity only after receiving approval from regulators from all three states. The operator, too, could not provide a timeframe for its endeavor.
