Shared iPoker Deal Signed Between NJ, Nevada & Delaware

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Tuesday, October 17th, 2017 | Written by Charles Washington

On October 13th, New Jersey Governor Chris Christie (photo) announced that the state would enter a multi-state online poker agreement with Delaware and Nevada after the governor of Delaware John Carney and the governor of Nevada Brian Sandoval succeeded in persuading New Jersey to join their compact, and allow the online poker players of all three states to compete against one another.

Multi-State Gaming Agreement Signed

New Jersey, Nevada, and Delaware are the only states to have legalized online gambling in the US. Nevada became the first to approve online poker in 2013, with Delaware joining suit a few months later, but also adding online gambling games to its industry as well, including casinos and slots. The online poker segment, however, didn’t prove as successful as initially anticipated resulting in Nevada and Delaware agreeing a multi-state internet gaming agreement a few years later in 2015. This multi-state agreement did boost online gambling revenues in both states, while making their respective internet gambling markets more competitive because of the more sizeable player pool.

New Jersey has a much larger online gambling market compared to the other two states, though, and while it contemplated joining Nevada and Delaware’s multi-state agreement, as well as an inter-country compact with the UK, no progress was forthcoming. Part of the reason for this is because New Jersey’s online poker initially showed signs of growing all on its own, but hopes have since faded, with even PokerStars unable to halt the decline. Case in point, New Jersey’s online poker market has fallen to represent less than one-fifth of its overall internet gambling market, while the state’s overall online gambling market, on the other hand, continues to grow with current estimates placing revenue at $240 million for the whole of 2017.

Landmark Agreement for US iPoker

There are currently 23 online gaming websites operating in New Jersey, with more expected in the near future thanks to the interstate online gaming agreement. Governor Christie said the new agreement will mark a new beginning for the online gaming industry of New Jersey by boosting annual revenues, giving online gaming operators and players alike new opportunities, whilst also bringing in a new generation of consumers.

Likewise, Caesars Interactive, which owns Nevada’s only viable online poker site called WSOP.com, also hailed the exciting development, stating:

“We applaud the government leadership and the regulators in New Jersey, Nevada and Delaware for reaching this meaningful agreement. We will immediately begin efforts to take our existing Delaware-Nevada compact and add New Jersey to the mix by following the requirements established by the regulators so WSOP.com can share liquidity with all three states.”

IT and Software Platforms must be Reviewed

All three states are set to start reviewing the software and IT platforms of their licensed online gambling operators before clearing them to start providing gaming services in a unified poker market. The IT teams in Nevada are already working with the technology departments of Delaware and New Jersey, but there haven’t been any deadlines set for when the process will be completed.

In the meantime, Nevada Governor Brian Sandoval released a statement saying that the latest technological advancements and innovations are bringing more people together, and improving the capabilities of the gambling industry in the Silver State. Gambling is one of the oldest industries in Nevada, and the governor highlighted the importance of considering any opportunity to bring the industry to its full potential.

One of the primary challenges concerning an interstate compact is that different states apply their own different gambling taxation laws and rates. Nevada, for instance, uses the same tax rate for online gaming as it does for land-based casinos. Nevertheless, such concerns have now been simplified in the interstate agreement with gaming revenue to be taxed based upon where the players actually live. Furthermore, only players physically located within Nevada, Delaware or New Jersey will be allowed play on the internet gambling sites.

WSOP.com is the Only Operator Found in all Three States

WSOP.com, currently owned by Caesars Entertainment, will be one of the main beneficiaries of the new landmark agreement as it the sole online gambling website currently operating across all three regulated states. PokerStars is the largest online poker website in the world, but even they are only authorized in New Jersey. In addition, PokerStars is unlikely to be granted a gaming license in Nevada as it is still considered a bad actor for flaunting the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006. It will be interesting to see how this poker giant responds to the multi-state agreement, especially if it does not receive the authorization it will obviously pursue in order to operate in both Delaware and Nevada.

Ultimately, the interstate gaming agreement is bound to boost online gaming traffic and revenues across all three states, while also increasing overall player prize pools. It may even positively impact the views of other states like California, Pennsylvania, and New York, who are also pushing for online gaming to be legalized. Ultimately, these states are sure to realize that by legalizing their own online gambling markets, they can expect a monetary boost to their own state coffers through gaming taxes, hopefully leading to more states adopting regulation next year.