How Would 888/Bwin.party Merger Impact NJ iPoker Market?

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Saturday, August 29th, 2015 | Written by Charles Washington

If you’re an online poker player in New Jersey, you may soon see your gaming options greatly reduced if 888 Holdings succeeds in buying bwin.party. Industry analysts speculate that if the £1 billion acquisition goes through it could mean the end of both nj.partypoker.com and BorgataPoker.com, which are operated by bwin.party. For players, that will mean moving over to an 888 New Jersey poker network to play, but what impact would it have on the Garden State’s iGaming market? Read on to see what industry analysts have to say.

Modest Cash Liquidity Increases Likely

While it’s tempting to think that consolidating 888 and bwin.party poker networks in New Jersey would suddenly mean a huge increase in liquidity, analysts are predicting that any gains will be very minor. New Jersey has a relatively small population, and it’s not easy for sites operating in the state to attract new players. Even a consolidated network comprised of the separate networks in their current form will not include all of the most popular types of online poker played today, and will not do anything to improve the costs of payment processing for 888.

One industry analyst did point out, though, that many New Jersey players were already greatly dissatisfied by PartyPoker and might welcome a migration to different platform. Setting up a shared online gambling network combining Atlantic City’s two most recognizable brands, namely the Borgata/Party, and Ceasars/888 partnerships, could create powerful marketing opportunities to attract new business to the state. After balancing all of the data, this expert expected a shared Caesars/Borgata poker network could help liquidity to grow by between 10 to 15 percent, boosting traffic to an average of 350 cash game players over a 7-day period. According to tracking site PokerScout, WSOP/888 (NJ) currently has 180 cash game players over the same period, while for Party Borgata (NJ) that number drops to around 120 players.

PokerStars A Possible Competitor

Although an 888/bwin.party merger would mean the end of two New Jersey poker sites, new options for players may still be available to players because it’s rumored that PokerStars may soon enter the New Jersey market. According to Resorts Casino Hotel owner Morris Bailey, who has agreed a partnership deal with PokerStars, the site may be granted a NJ iGaming within “weeks, not months”. The license has been delayed for more than two years now on account of the “Bad Actor” label attached to PokerStars’ former owner Isai Scheinberg, but since Amaya Gaming acquired the business last year, New Jersey seems prepared to let bygones be bygones.

There is no doubt that the world’s most popular poker site would be able to capture a large share of the market due to its established brand and prominent image. As a result, any gains in liquidity due to the merger will likely be offset, and if anything, will just cushion the blow that 888 and bwin.party would have suffered if they remained separate. The merger would also benefit 888 post-acquisition when you consider tournament potential. By absorbing their competitor, 888 will be positioned to compete directly with PokerStars when it comes to tournaments. New Jersey players have historically had no problems competing in tournaments held by two different networks, and that’s unlikely to change just because the two will now be PokerStars and 888.

NJ Market In Need Of A Boost

When you consider the possibility of PokerStars entry into New Jersey, it’s clear that acquiring bwin.party is a smart move for 888, and one would think they will continue to move on the acquisition. Therefore, the future of New Jersey’s iGaming market may Ultimately be decided by PokerStars, as well as a new consolidated 888/bwin.party network. In any case, New Jersey badly needs a major overhaul of its online poker market as June 2015 saw the lowest monthly iPoker revenues to date of $1.835 million, while by July iPoker revenues fell to just 15% of the overall iGaming market, also a new low for the state. Nevertheless, while optimists are hoping PokerStars and 888/bwin.party will reverse the downward trajectory, many analysts believe the impact will be far from substantial as the New Jersey the market is ring-fenced, and PokerStars will not be allowed to bring its global players into the US state.