New Jersey Mulls iPoker Compacts

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Friday, March 31st, 2017 | Written by Adam Brown

Liquidity is crucial for any online poker site, as without a large pool of players to choose from, the number of table games available becomes limited, and players can find themselves with a lengthy wait for any action. The situation is further magnified stateside as with just three states having legalized online poker, liquidity has become a major issue for American players.

Both Nevada and Delaware sought to address the issue by forming an interstate compact, but their small combined population of around 3 million people has been insufficient to solve the problem. Even New Jersey with 9 million people continues to suffer from low liquidity, and the state’s online poker revenues are well below what was predicted they would be when the industry was first legalized and regulated back in 2013.

Dire Need of Liquidity

The New Jersey Division of Gaming Enforcement isn’t blind to the problem, and in a recent interview, the director of the department, David Rebuck, went on the record saying that he realized New Jersey poker sites are in dire need of greater liquidity. He also revealed that the division knows that the answer to the problem lies in forming an interstate player pool compact; however, finding the right agreement is proving difficult, according to Rebuck.

Delaware/Nevada Compact Unattractive

Currently, the other two states that have legalized online poker, Nevada and Delaware, pool players through an agreement known as the Multi State Internet Gaming Agreement (MSIGA). Many New Jersey poker players have questioned why their state hasn’t simply signed onto the agreement in order to create a larger pool of players. In the interview, Rebuck explained what some of the problems are with the MSIGA:

– The agreement is structured in a way that gives Delaware and Nevada most control over the future of the player pooling agreement. As a late signer, New Jersey would not have equal say.

– Rebuck feels that there is too much bureaucracy involved with the MSIGA and that there are more efficient ways to have an agreement.

– To sign the MSIGA, the New Jersey legislature may have to rewrite their existing gaming laws or even amend the state’s constitution.

– Nevada and Delaware only have 888 Poker as an operator, while New Jersey is home to multiple online firms. As a result, only players at 888 Poker would benefit from the Garden State joining the MSIGA.

The upshot of these obstacles is that a great deal of work would be needed before New Jersey would even consider joining the MSIGA, and commenting on the matter, Rebuck stated:

“In New Jersey, our law for allowing agreements between state regulatory agencies are less restrictive. We don’t need a formal compact. We are allowed to have agreements that can be worked out in a less bureaucratic way. It doesn’t mean we can’t enter into a more formal compact, but I’ve reviewed it and talked to Delaware and Nevada, and there [are] some structural, organizational standards that are in there that I just don’t agree with.”

Pennsylvania Best Hope

The best hope for online poker player pooling in New Jersey seems to be the state’s next door neighbor, Pennsylvania. The Keystone State has been considering legalizing online poker for some time, and many of its casino operators own properties in New Jersey, as well. If Pennsylvania eventually succeeds in legalizing online poker, the state would be starting fresh with no preexisting player compact rules. This would allow Pennsylvania and New Jersey to work together to come up with their own agreement that suits the laws of both states.

Furthermore, New Jersey and Pennsylvania would have a combined population of around 22 million people, representing a healthier online poker player pool for both states, and expressing his preference for such a partnership, Rebuck said:

“If you have two states like Pennsylvania and New Jersey, there’s a lot in common. We’ll work our tails off and Pennsylvania will work their tails off to come together on this.. it’s a win-win.”

Compact with the UK

New Jersey is not betting it all on Pennsylvania, though. Rebuck stated that the state is also looking into whether or not the Garden State can partner with the UK for player pooling. While regulators across the pond have been eager to discuss an agreement, technical limitations have caused the negotiations to stall.

“It’s not as easy as one would have thought when we first got into it,” explained Rebuck.