Nevada Approves Formation Of Interactive Online Poker Network

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Monday, July 14th, 2014 | Written by Charles Washington

This week Nevada’s Gaming Control Board gave the go-ahead for an intrastate iPoker network to be formed which would allow competing poker sites to band together within a single poker network. Having multiple casino poker websites on one interactive gaming system comes with many benefits, including the potential to increase the player pool within the Silver State. Commenting on the issue the plan’s proposer, 888 Holdings, released a statement through the company’s attorney Yehoshua Gurtler, stating: “For Nevada, a network provides more gaming taxes due to greater product attractiveness and player participation.”

In addition, Nevada’s shared liquidity network could form the foundation of an interstate compact agreed between Nevada and Delaware, and may lead to New Jersey implementing a similar move in its fledgling igaming industry.

How will Nevada’s intrastate iPoker network work?

888 Holdings would develop the intrastate iPoker network and have Caesars Interactive Entertainment’s WSOP.com site as its first members, followed by Treasure Island hotel-casino and its planned online poker website Treasure Island. Other poker rooms will also be encouraged to join the platform, resulting in Nevada players being able to log-in and gamble against players from any of the network’s other sites. In this way, Nevada’s new shared liquidity network would be no different than other US-friendly networks, such as Merge and WPN.

Even though New Jersey already currently has a similar network involving BorgataPoker.com and NJ.PartyPoker.com., Nevada’s proposed network would apparently be open for other operators to join, which would be particularly welcome news for small operators which would otherwise have a hard time trying to survive in Nevada’s small online poker market.

Fourteen months after launching its first ipoker site, Nevada currently has only two main online poker rooms, namely WSOP.com and Ultimate Poker, with third site Real Gaming showing no traffic according to PokerScout. Altogether, Nevada’s online poker sites have generated $10.2 million in revenues over its first 12 months of operations, resulting in a paltry $700,000 in tax revenue for the state.

Launch pad for Nevada/Delaware ipoker compact

Earlier this year, Delaware Governor Jack Markell and Nevada Governor Brian Sandoval signed an interstate online poker compact, which envisioned the two states sharing liquidity by the end of this summer. Commenting on the landmark deal, Sandoval, stated:

“We are standing in a moment of history – a landmark intersection in the road of the gaming industry. We want to pioneer the new digital space together.”

Nevada and Delaware are two of the smallest states in the US and so forming an interstate compact could be vital for survival of the state’s igaming industries, especially in Delaware where in May poker revenues plummeted by 22% to a mere $57,470.

All three of Delaware’s iPoker skins use 888 software and already share the same player liquidity pool, therefore combining Nevada’s and Delaware’s ipoker industries should prove a straightforward affair after Nevada’s new iPoker network is approved following a hearing on July 24th.

Could New Jersey follow a similar path?

In Nevada WSOP.com is powered by 888’s software, while in New Jersey the two companies are in direct competition with each other. Meanwhile, PartyPoker NJ has thus far proved the most successful online poker operation in the US, with 888 and WSOP struggling to keep up with the industry front runner.

Over the past two months, the 45th Annual World Series of Poker currently winding down in Las Vegas may have seen WSOP.com Nevada’s traffic almost double to 160 cash game players over a seven-day period, placing the site ahead of PartyPoker NJ with around 140 players, but that situation is not expected to last for long following the prestigious tournament series’ coming to a close next week.

Therefore, 888 and WSOP joining forces within a single poker network will enable the operators to more effectively compete against PartyPoker by generating more total traffic than they would otherwise be able to do on their own. The process should be a smooth one, too, as the two operators already use 888’s Dragonfish poker software to power their platforms.

Furthermore, the importance of forming an 888/WSOP.com network may soon prove even more vital for the two companies if global online poker leader PokerStars is permitted to re-enter USA’s nascent igaming market as analysts are predicting, starting with New Jersey.