PokerStars To Transform NJ Into Silicon Valley Of Internet Gaming

For a while now New Jersey‘s gambling industry has been more a cause for concern rather than optimism, but recently there has been a distinct change in mood after State Senator Ray Lesniak (photo) hinted that PokerStars was now on the fast track to making a New Jersey return. The online poker room was once considered a ‘bad actor’ having flaunted the UIGEA of 2006, but its consideration was made possible after Amaya Gaming acquired the business in June, with regulators subsequently reacting positively to the move.

Giving a clue as to what PokerStars’ return to New Jersey would mean, Lesniak tweeted the following message:

“PokerStars launch will spark an AC revival. Stay tuned for a major announcement,” before later adding: “With @PokerStars in NJ we’re on our way to being the Silicon Valley of Internet gaming.”

Launch could occur “in weeks, not months”

According to state Sen. Ray Lesniak, the world’s biggest online poker room will make a return to US shores within “weeks, not months,” representing the sites first official presence since Black Friday on April 15, 2011.

Lending further credence to the announcement, PokerStars has recently submitted applications for six new trademarks in the USA for the first time in nearly 7 years, including the terms PCA, PokerStars Caribbean Adventure, We Are Poker and Zoom Poker.

PokerStars to boost NJ’s iPoker landscape

According to a recent study by Robert DellaFave in onlinepokerreport.com, New Jersey’s online poker market can expect to almost triple in size from 330+ cash players over a seven day period to around 800 players shortly after PokerStars NJ return. In the online tournament arena the gains are expected to be more dramatic still, with numbers rising from their current levels of 2,500 players to nearly 10,000 tournament players.

PokerStars to make huge AC investment

Nevertheless, online poker represents just the tip of the iceberg in terms of the benefits the site can bring to the state, and as Lesniak further elaborates:

“It’s going to be soon and it’s going to be huge. PokerStars is going to make a huge investment in Atlantic City, not just in Internet gaming but in their brand and in bringing attractions to Atlantic City.”

One such example may include the popular ‘World Cup of Poker’ event taking place in New Jersey, rather than its present location at the PokerStars Caribbean Adventure at the Atlantis Resort in The Bahamas.

International player pools on the cards

As well as PokerStars’ entry acting as a catalyst for a new Nevada/Delaware/New Jersey interstate compact hinted at recently by New Jersey Governor Chris Christie, the Governor has even more ambitious plans in mind and has stated that “the next step is to go international with Internet gaming.”

While the USA’s online gambling laws are not entirely clear, there would appear to be no federal law preventing two licensed jurisdictions from offering online poker, whether individual US states or other countries. An international player pool would subsequently represent a game-changer for New Jersey online poker, as well as any of the other newly regulated US markets who would be tempted to opt in.

As a result, these nascent iPoker markets would be allowed to grow alongside more mature markets, with the huge increase in liquidity enabling a bigger choice of games and stakes, thus drawing back in those poker players currently gambling on unregulated offshore sites.

Sports betting coming to NJ?

Another new development that has the potential to dramatically change New Jersey gambling landscape is Governor Chris Christie recent decision to plough ahead with legalizing sports betting, despite a previous ruling by the US District Court turning down its appeal. As analyst Blayne Davis recently noted:

“They [US Government] will not endorse it or make policing it a priority. Economic reality will prevail and I believe several states will follow. It will be akin to their stance on recreational marijuana in Colorado.”

Integral to NJ’s economic recovery

Since 2007, New Jersey has seen the revenues it generated from its casino industry plummet from $5.2 billion to $2.8 billion in 2013. Helping to explain the dire situation is the fact more 40 casinos have opened up in neighbouring states over the past few year, and now just seven of Atlantic City’s original twelve casinos are expected to survive to the end of 2014.

Unfortunately, to date online poker has failed to halt the dramatic fortunes of the state’s gambling industry, although the $10+ million its industry rakes in each month makes it by far the biggest iGaming market in the US. However, together with the development mentioned, New Jersey may finally be on the brink of turning around its beleaguered but vitally important gambling market.