Bovada No Longer Accepting New NJ Poker Players

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Friday, May 30th, 2014 | Written by Lucy Brown

Last week, we reported that the New Jersey Division of Gaming Enforcement (DGE) had sent out instructions to US affiliates requesting that they stop promoting unlicensed internet poker rooms and “immediately remove any online gaming links that are not authorized under federal law or under the law of any state.” The move was designed to protect the state’s nascent igaming industry from offshore sites, and in the wake of its dramatic decision Bovada has now announced it will no longer be accepting New Jersey online poker players on its site, Bovada.lv.

As an official company statement released by the US version of Bodog, explains: “Our partner brand Bovada.lv has chosen to stop new account registrations for residents of the state of New Jersey. Existing account holders will not be affected. This is a decision they have taken of their own volition and they hope that their existing customers continue to enjoy all of the products and services Bovada.lv has to offer.”

NJ frustrated with unlicensed competition

When the DGE sent its cease and desist letters out to the main US affiliates promoting grey market poker sites, it was a sign of the state’s growing frustration with offshore operators who continue to siphon money away from the NJ market, without having to pay license fees, taxes or even adhere to any state regulations.

This gives these unregulated sites a major advantage against their licensed NJ counterparts, and none more so than Bodog/Bovada which is not only the 7th largest poker room in the world with an average of 1,400 cash players over a seven day period, but also the biggest site serving US players. As a result, while the New Jersey regulated igaming market is currently dominated by Party Borgata and WSOP.com with a combined 270 cash game players on the sites at any one time, most of the state’s other regulated sites have not even been given a look in because of Bovada’s presence.

This is reflected in NJ’s latest online poker results which showed a decline for the first time last month with revenues dropping to $2.6 million from $3.2 million in March. Online poker now represents just 20% of NJ’s overall igaming results, which totaled $11,428,737 in April, down from the $11,878,374 generated in March.

Bovada hedging its bets

Analysts believe Bovada’s decision to no longer accept new account registrations in NJ comes as a result of the regulatory missive the DGE sent out to affiliates such as PokerSource.com, CardsChat.com, Pokersites.com, RakeBrain.com, and RaketheRake.com. Not only are these affiliates now likely to obey and stop promoting Bovada to NJ residents in any case, but Bovada may also be seeking to protect itself from any litigation from authorities in the future. As explained on casino.org:

“With Bovada falling under that category, the major Internet operator may feel it’s best to protect its reputation, and not fall prey to the fate of companies like PokerStars which, though chomping at the bit to enter the legal and regulated US online market now, have so far been prevented from doing so in the three legal states due to its “bad actor” designation for post-Unlawful Internet Gambling Enforcement Act (UIGEA) behavior.”

Nevertheless, Bovada has highlighted the fact that just its internet poker product would be affected, and not its other US online casino games, including sports betting and horse racing.

Affiliates now have a decision to make

Talking about the damage affiliate sites promoting websites like Bovada have inflicted upon NJ’s nascent igaming industry, DGE spokeswoman Kerry Langan said that it creates the erroneous impression that “these illegal sites are affiliated with authorized sites.”

She then went on explain that affiliates will now be faced with a decision on whether to promote unregulated but busy poker rooms and potentially risk future legal action by authorities, or alternatively to promote currently less busy but legitimate poker rooms, and thus help grow the industry. Giving an indication as to what immediate penalties offending affiliates may now find themselves subjected, NJ Assistant Attorney General George Rover quoted part of the New Jersey’s gaming act in his cease-and-desist letters, stating:

“5:12.95.26 Offering of Internet gaming without approval, fourth degree crime; fines:
Any person who offers games into play or displays such games through Internet gaming without approval of the division to do so is guilty of a crime of the fourth degree and notwithstanding the provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than $25,000 and in the case of a person other than a natural person, to a fine of not more than $100,000 any other appropriate disposition authorized by subsection b. of N.J.S.2C:43-2.”

Affiliates and sites now getting the message

Amongst the major poker operators who had previously abandoned New Jersey’s nascent online poker are FullFlushPoker, the Merge Gaming Network, Winning Poker Network, Equity Poker Network, and now Bodog/Bovada. Although the later will still continue allowing existing customers to play poker in NJ, all indications show the future of offshore online poker sites operating with impunity in the USA’s regulated market are now numbered.