Europe’s online poker landscape is about to change in just two days from now when the gambling regulators of France, Italy, Spain, and Portugal are set to sign a much-anticipated first shared liquidity agreement. The move will see the creation of a poker network that will combine players from all four countries.
Shared liquidity has been on and off the discussion table for several years now. However, it was not before last summer that first actual steps were taken towards the consideration of a plan and its eventual implementation.
Online poker enjoyed great popularity among players from around the world back in the 2000s, particularly after Chris Moneymaker won the 2003 WSOP Main Event after qualifying for the tournament via an online poker satellite. When the Unlawful Internet Gambling Enforcement Act came into effect in the United States in 2006 and practically banned the provision of online gambling services, poker included, the global poker community was eager to see how European regulators would react to the growing demand for poker.
Of all four countries participating in the first shared liquidity agreement, Italy was the first to regulate its online poker market. That happened in 2006. France followed suit in 2010 and Spain opened its own market for licensed poker operations (and other gambling options) in 2012. Portugal’s nascent poker market was officially established late in 2016 when a first license was granted to PokerStars. The online poker room has remained the sole operator to be providing that type of offering to local players.
And while it is yet too early to assess the Portuguese market adequately, there is a common pattern noticed in the development of the other three poker markets. Despite the clear need for regulated service, instead of creating a favorable playing environment for players, the regulatory regimes of the three jurisdictions produced a somewhat opposite effect.
Within the context of the gambling industry, regulations are generally designed with two main purposes – to protect players from suspicious unregulated operations and to generate tax revenue. However, if lawmakers fail to find the right balance, as they so often do, between what should be considered proper regulations and ones too strict, this could have a very negative impact on one market or another.
In the cases of Italy, France, and Spain (and Portugal, for that matter), lawmakers have decided to ring-fence their online poker markets, thus making it practically impossible for local players to participate in games with counterparts from other European jurisdictions.
As a result, many players opted for unregulated, even black market operations, where they could join larger pools. With customers steering away from the regulated environment, poker revenue has not proved to be very impressive over the years in all three countries.
The shared online poker liquidity project is believed to be one good way for players to be charmed into playing on licensed poker websites in their respective countries. And although it will be quite a pity if the scheme fails, it is still worth trying for the sake of a game many play for a living and would wish to be able to play in a diverse environment. At least it cannot do any more harm than previous regulations had already done.
Gambling regulators from Italy, France, Spain, and Portugal are set to sign the key shared liquidity agreement on July 6 at a special meeting in Rome. More details about the future online poker network are expected to emerge afterwards.
