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New Jersey made waves when it signed an interstate online gambling agreement with Nevada and Delaware. The agreement allows online poker operators in two or more of the states to pool online poker players.
This player pooling will provide a much-needed boost to site traffic. Still, there’s no answer for when the agreement will be consummated with actual liquidity sharing.
As US Poker has documented, once the three states begin sharing poker players, online poker traffic in New Jersey will grow by 50 percent. Traffic in Nevada and Delaware will double.
Tournaments will likely see an even larger increase, as the added liquidity will cause prize pools to surge, which will bring out a lot of recreational players for Sunday tournaments.
As impactful as the agreement will be, the states aren’t going to rush into it.
New Jersey joined the Multi-State Internet Gaming Association in October. Two months later, it’s still unclear when the state will start pooling its online poker players with Nevada and Delaware. Furthermore, the answer appears to be later rather sooner.
As Online Poker Report suspected when the agreement was announced, the timeline for pooling is being measured in months.
New Jersey Division of Gaming Enforcement Director David Rebuck has repeatedly warned that an interstate agreement isn’t as simple as magically connecting the internet in New Jersey, Nevada and Delaware.
“There are a lot of factors involved in online gaming, and it’s just not a matter of flipping a switch and saying, we’re going to turn on the Internet today,” Rebuck said during a June interview with Global Gaming Business.
Nevada and Delaware took more than a year from signing a compact to launching. European countries are dealing with the same cross-jurisdictional difficulties. Six months after European pooling became a possibility, only a single operator — PokerStars — has been approved in a single country.
In the case of the NJ-NV-DE compact, prospective operators have to submit the appropriate requests to each state and comply with whatever stipulations the states are requiring.
From there, regulators must test the network on all ends. Caesars Interactive gave us an idea about what the process would look like a few months back.
As one person familiar with the process told Online Poker Report, there are a lot of moving parts. States must sort through many unknowns before interstate pooling can begin.
In addition to being more complicated than most people believe, there could be another reason for the delay.
As such, regulators could be buying time to offset this built-in advantage. They’re perhaps waiting for MGM or another operator to launch in Nevada. Or perhaps they’re buying time for Pennsylvania to launch iGaming and join the interstate agreement.
But for now, the wait for sharing online poker liquidity continues.