Online Poker Report

NV Licensee Profile: NetEffect Networks

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This is one of a series of profiles covering companies that hold a license to participate in Nevada’s online gambling market.

Neteffect Networks is a Nevada based IT company that has been around since 2002, mainly working outside of the gaming industry during most of that time. That seems to have all changed once the company received its Service Provider license from the Nevada Gaming Commission, as Neteffect is now proudly boasting their Nevada Service Provider license, which can be seen front and center on the company’s homepage.

Details and Timeline of Neteffect’s Nevada License

Neteffect Networks was one of the first companies to submit their online poker license application in Nevada, doing so in February of 2012; applying for the somewhat-vague Class 2 Service Provider license. A Class 2 Service Provider license is for all companies that do not provide gaming software (Class 1 licensees), and are not affiliates (a Class 3 license), instead Class 2 licenses go to age and ID verification companies, payment processors, and IT sites like Neteffect Networks.

On July 26, 2012 Neteffect Networks became the fourth company to receive an online gaming license from the state of Nevada and the first IT Service Provider. Unlike the previous three licenses, which went to IGT, Ballys, and Shuffle Master, Neteffect is relatively unknown company in the gaming world (since they aren’t necessarily in the gaming business) which gave a lot of hope to other companies who might not have the history in Nevada of companies like Ballys or MGM.

Partnerships and Role in the Las Vegas market

Neteffects has yet to enter into any official partnerships with licensed operators in Nevada, but the company’s vision is to become the key IT company for online poker operators, and potentially for Class 1 Service Providers as well.

Neteffect Company Overview

The company has been around since 2002, making it one of the older and better-known IT service providers in the world, and NetEffects provides a number of different services, focusing mainly on customer service and IT issues.

NetEffect boasts of a 98% client-retention rate on their website, and has worked with domestic and foreign companies in any number of fields, including retail, financial services, pharmaceutical, telecommunications, biotechnology, and government services, and now NetEffect will add iGaming providers to that list.

Neteffect would generally provide their clients with fixed IT support, cloud support, VoIP Phone Systems, and consulting services. But now that Neteffect Networks has procured a Class 2 Service Provider the company is putting a heavy emphasis on Gaming and Hospitality (a relatively good field to get into for a Las Vegas based company) and already has procured one high-profile client in Treasure Island, a licensed online poker operator in Nevada.

Neteffect: Power Players

  • President and CEO: Jeff Grace. A lifelong Nevadan, Jeff Grace founded NetEffect in 2002 and has been piloting the company ever since. After graduating from UNLV Grace took a job with an ISP company in Boston, followed by stints as a tech consultant and doing network analysis before launching NetEffect.
  • Gaming and Hospitality Specialists: Tim Frawlie and Mike Amie. These jobs were specifically added to handle NetEffect Networks online poker partnerships.
  • Director of Support: Brad Swan
  • Senior Engineer: Stuart Rowe

Neteffect’s Potential in other US markets

With the ambiguity of a Class 2 Service Provider license it’s currently unclear how this unique tier of licensed companies will correspond to service provider licenses in other states, or what process other states will have them go through in order to gain a license. Fortunately for NetEffect Networks, the company’s role in the online gaming industry is easily transferable across state lines.

External Links

*Resources: www.neteffect-it.com

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Steve Ruddock
- Steve covers nearly every angle of online poker in his job as a full-time freelance poker writer. His primary focus for OPR is the developing legal and legislative picture for regulated US online poker and gambling.