PokerStars Cleared By Regulators To Operate In New Jersey

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Tuesday, October 6th, 2015 | Written by Charles Washington

On September 30th, the New Jersey Division of Gaming Enforcement (DGE) finally gave approval for Amaya Gaming brands, PokerStars and Full Tilt, to enter the state’s online gambling market. It is hoped that the world’s largest online poker operator will now hope to grow New Jersey’s iPoker industry, and commenting upon the opportunity, Amaya’s chairman, David Baazov, said:

“We look forward to bringing our popular brands, innovative technology, marketing prowess and world-class security and game integrity to the growing New Jersey online gaming market.”

Not Just Poker

While both PokerStars and Full Tilt are well established online poker sites, they both have also started branching out into other areas of iGaming. This not only includes introducing fast-paced, lottery type variants of their popular poker games, such as ‘Zoom’ and ‘Rush Poker’, but also the addition of online slots, and other casino games, such as roulette and blackjack. This is seen as an essential part of Amaya’s strategy going forward, as these days operators can no longer afford to rely on just their iPoker revenues to survive, especially with poker having been in decline over the past few years, while iGaming in general has been growing.

When Will PokerStars NJ Go Live?

PokerStars appeared ready to launch its New Jersey online gambling product at a moment’s notice as far back as 2014, but after having its application process frozen, the business has since fallen back to a holding position on the matter. With PokerStars and Full Tilt then being purchased by Amaya Gaming last year, the Canadian company will now have to undertake a number of steps to prepare the sites once more for “readiness”. This includes obtaining additional regulatory approvals from the DGE, as well as other fundamental steps to make its New Jersey sites ready to go. With these factors in mind, analysts have predicted it may not be until January 2016 that PokerStars NJ will start offering full real-money gambling.

Resorts and PokerStars in Partnership

Online gambling sites must team up with land-based casino companies in order to receive a New Jersey iGaming license. Initially, PokerStars had explored partnering with casino magnate Steve Wynn, one of the world’s most successful casino owners, until the US Department of Justice (DOJ) dealt a blow to any potential deal with its Black-Friday operation on April 15, 2011. A subsequent attempt by PokerStars to acquire the Atlantic Club Casino in New Jersey similarly fell through, leading to Amaya striking a partnership deal with Resorts Casino, instead. Resorts already offers online gambling via its ResortsCasino.com and MoheganSunCasino.com sites, but the casino is now looking forward to working alongside the biggest poker company and innovator in the business, and all the financial and promotional benefits that affords.

“Our partnership with PokerStars is a testament to our commitment to offering our players the very best gaming and entertainment experience,” explained Resorts owner Morris Bailey.

A Boost to New Jersey

It may not be just Resorts which stands to benefit from its partnership with Amaya Gaming, as industry officials are hoping that the addition of the popular PokerStars and Full Tilt brands will help give a boost to New Jersey’s overall iGaming market. The Garden State adopted internet gambling in November 2013, and while revenues have been significantly lower than those predictions touted pre-regulation, they have started to improve gradually, and for the first eight months of 2015, revenues total $96.7 million, up 15.6% over the same period in 2014.

Nevertheless, concerns exist that New Jersey’s online gambling market is still too small and that Amaya’s entry may result in other online poker sites losing market share and being pushed out of the industry. Many analysts still maintain that in order to truly expand and thrive legislation should be passed to allow New Jersey to form compacts with other US states, and as OnlinePokerReport editor Chris Grove explains:

“PokerStars’ entry into the New Jersey market will certainly provide a shot in the arm for regulated online poker in the state. But once the initial wave of enthusiasm fades, New Jersey will still be faced with the reality that its player base simply isn’t large enough to support multiple online poker sites. To thrive — or perhaps to simply survive — the state will need to link up with other markets, in the U.S. or abroad.”