Delaware iPoker Revenues Shrinks 8.3% in November 2015

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Sunday, January 3rd, 2016 | Written by Charles Washington

The Delaware Lottery has released its monthly iGaming results for November, revealing a slight 1.21% fall in revenues to $182,664 compared to the $184,898 that was generated in the same month in 2014. Online poker, too, suffered an 8.3% year-over-year contraction in business to $28,985, although that figure put a halt to the two consecutive months of all-time lows reported for September and October.

iPoker A Shrinking Proposition

In November, Delaware’s iPoker industry generated $28,985 in revenues, lifting the market off the lows of $24,523 and $24,030 seen in September and October respectively. In fact, iPoker was actually 21% higher when a month-over-month comparison is used, although that method still doesn’t disguise the fact that the state’s online poker market continues to wane in popularity, and currently accounts for a mere 16% of overall iGaming revenues. Last month, Delaware Park generated the lion’s share of revenues at $19,589, followed by Dover Downs with $5,988, and finally Harrington Raceway with $3,407.

Interstate Compact Ineffectual

In 2015, Nevada and Delaware finally moved ahead with their interstate poker player sharing agreement, and following an initial boost to Delaware’s iPoker revenues, the novelty of sharing players with Nevada soon wore off, and the numbers have subsequently returned back to pre-compact levels. According to today’s (3/1/16) PokerScout report, the shared WSOP NV/DE Lottery network currently shows 180 cash game players over a 7-day period. Not only is that figure too low to support a viable iPoker player pool, but the situation becomes even more untenable when one considers that most of those people are Nevada residents.

PokerStars May Be A Game Changer

One bright light on the horizon is the imminent return of PokerStars to the USA, or more specifically to New Jersey. After an extended delay, the world’s biggest poker room finally received an iGaming license from New Jersey in September. The Amaya owned site has partnered with Atlantic City’s Resorts casino and is expected to launch its product as early as the first quarter of 2016. Once established in the Garden State, industry observers are hoping that PokerStars may then be invited to form a shared iPoker network with Nevada/Delaware to form a more viable playing environment, and thus act as an incentive for other US states to pass regulation of their own, and join the bandwagon.

Importance of Online Casinos

When Nevada passed online gambling regulation in 2013, the industry was limited to include just iPoker. California and New York have also now shown an interest in offering just online poker, but without a wider appetite than is currently being demonstrated by players, then such a move is likely to only reduce the ultimate potential of their respective iGaming markets. In November, for instance, Delawares’ online casino and table games generated $55,105, almost double the revenues of iPoker, while for video lottery that figure rises to an impressive $98,573. Altogether, the state collected $182,664 last month from its combined iGaming industry, representing the fourth best month of the year so far, with video lottery accounting for 54% of all online business in November.

Prospects for US iGaming in 2016

In the absence of a federal law governing iGaming, more US states adopting online regulation can help to inspire other states to do likewise and ultimately contribute to a more consolidated wider market in the long-term. Probably the state most likely to pass online gambling legislation in 2016 is Pennsylvania, which currently has the support of many politicians, as well as 11 of its 12 brick-and-mortar casinos. A lack of agreement on how to go about plugging Pennsylvania’s budget deficit, however, has lead to an impasse on the issue, with iGaming enthusiasts hoping that 2016 may see an iGaming bill attached to the state’s budget proposal, or even passed independently.

Other major candidates include California, which has thus far been unable to resolve the differences between the states disparate gaming interests, as well as New York, which is likely to plough ahead with iGaming legislation if it sees its southern neighbor Pennsylvania moving closer in that direction. In addition, the Massachusetts Attorney General recently judged daily fantasy sports to be a game of skill, and the state is currently considering regulating the industry, prompting analysts to believe online poker may also be given the same treatment. In the meantime, competition creates more competition, and if Massachusetts, New York and Pennsylvania do adopt legislation, states such as Connecticut, Maryland, Rhode Island or West Virginia could soon follow.