New Jersey Online Gambling Brief: PokerStars Reentry into the Garden State Looms Large
Three years, three months and 23 days – that’s how long it’s been since the world’s leading online poker provider, PokerStars, was forcibly removed from the United States. And for online grinders who used to depend on high volume play, what a lonely time it’s been.
To be fair, PokerStars has fought tooth and nail to regain a foothold in the U.S.’s regulated market – first through its attempted purchase of the now defunct Atlantic Club, followed by its hotly contested partnership with the Morongo out in California, and more recently by Amaya’s blockbuster deal to acquire its parent company, the Rational Group. Yet for all of the company’s attempts to scratch and claw its way back, bad actor provisions and debates have prevented Stars from dealing a single hand in the U.S. since April 15, 2011.
But according to the DGE, the winds of change are a whispering.
In response, both Party / Borgata and WSOP.com appear to be preparing themselves for what should be hard fought battle for market supremacy / relevancy in New Jersey. That’s good news for players, who before long may be reaping the benefits of an all-out promotional war between NJ’s current networks and Stars.
This week, we’ll take a quick look at what NJ’s operators have planned, check in on our old friend PokerStars and muse over the future of payment processing in the Garden State. That, and more.
Roger Gros: PokerStars to launch in August
Just a few months ago, the likelihood of PokerStars launching a U.S. operation before the leaves changed color was nearly inconceivable. But thanks to Amaya’s acquisition of Rational Group, and the speed in which the deal was completed, it now appears to be a near certainty.
With regards to PokerStars reentry timeline, publisher of well-respected gaming trade publication Global Gaming Business Roger Gros had this to say on Twitter:
@OPReport Now that the deal has been completed, I expect Amaya to be approved to launch PokerStars before the end of the month.
— Roger Gros (@GlobalGamingBiz) August 4, 2014
There is plenty of evidence to support Gros’s claim. In his excellent piece on the U.S.’s iGaming market, Gros quotes NJ Division of Gaming Enforcement Director David Rebuck as saying:
“Amaya worked with us to get licensed, and understands our standards for suitability,” he says. “We’ve had significant discussions with them about the acquisition of PokerStars. There will be no surprises. Amaya has a very good reputation, and it’s a company we trust. I fully expect that subsidiary, whether it be PokerStars, Full Tilt, or whatever, will not have a problem in getting licensed. It’s going to be a very exciting time for the state, Amaya and the world’s largest internet gaming operator. And we’re going to do it right.”
When it was suspected that the deal between Amaya and PokerStars would not close until late-September, most analysts put the timeline for Stars reentry into NJ around mid to late fall. But with the closure completed so quickly, and New Jersey having already reviewed the bulk of Stars’ application, I concur that an August launch is plausible. Expect some sort of announcement soon.
PokerStars in Florida?
With a California iGaming bill off the table until 2015, it looks like PokerStars is focusing its efforts on securing relationships with another state – Florida. Earlier this week, the Seminole Hard Rock teamed up with PokerStars in offering players the chance to register for the Tampa-based casino’s $5,300 buy-in, $10 million main event via their PokerStars account.
One of the biggest live tournament events on the calendar, last year’s main smashed its lofty guarantee by nearly $2 million. This time around, the Seminole Hard Rock is also introducing a prestigious $100,000 super high roller tournament as part of its schedule.
Florida is considered by many to be among the top 10 states most likely to adopt iGaming legislation in the near future.
So what’s this mean for New Jersey? A couple of things. First, it indicates that PokerStars will stop at nothing to become part of every major online poker market in the United States. This bodes well for New Jersey should it forge interstate compacts with any of these markets.
Secondly, it hints at PokerStars plans to allow players to sign up for live events tournaments at Resorts in a similar fashion. Encouraging players from all over the world to play live poker in Atlantic City may help to revitalize the city’s fledgling gaming industry.
Party / Borgata, WSOP.com respond
It looks like the Garden State’s current market share leader won’t be going down without a fight, or in the case of WSOP, a knockout.
Both networks announced upcoming tournament series this week, with WSOP’s kicking off next week and Party / Borgata’s to overlap with the Borgata’s flagship tournament series, the Borgata Poker Open, in September.
WSOP’s Summer Knockout Championship Series is a series of bounty tournaments with varying buy-ins and guarantees. Each event is annotated with a weight class, with smaller buy-in events delegated to the lower weight classes and the main event brandished the “Heavyweight Championship.” Events will take place daily at 6 pm from August 11 to the 17.
But the big announcement this week was Party / Borgata’s unveiling of their Garden State Super Series draft schedule. Featuring a staggering 60 events spread out across various game formats and buy-in tiers, the series will award a guaranteed $1,000,000 in prize money, rendering it the biggest series in U.S. regulated iPoker history to date.
For a comprehensive look at the GSSS, check out my impressions post here.
Paypal to join regulated market?
In terms of popularity, Paypal is to 2014 as Neteller was to 2006. So one can imagine the delight it would bring to the online poker community if the world’s current leading payment processor reversed its anti-gambling position.
Well, according to Chris Grove’s latest OPR Quick Take (sign up here), that could one day be the case:
“PAYPAL plans to announce a foray into processing regulated online gambling payments in the coming months, according to a source with knowledge of the company’s plans.”
There’s been no word yet on when Paypal will enter the mix, but apparently the company has been examining the issue for months.
Granted, with the reintroduction of Neteller and other third-party payment methods, the payment processing fiasco that plagued NJ’s early days in the regulated market is mostly resolved.
But for those who have yet to load a real-money iGaming account, the benefits of having Paypal as a funding option are nearly innumerable. I mean doesn’t everyone already have a Paypal account? Not only that, but Paypal is one of the most respected names in all the Internet.
Cheer up Atlantic City
No wonder why no one is going to Atlantic City anymore; it’s one of the unfriendliest cities in the nation. At least that’s what a study conducted by Readers’ Choice Survey revealed.
New Jersey’s gambling playground was designated the fourth unfriendliest city, moving up one spot in the rankings since last year. Readers site the city’s poor nightlife, unappealing shopping districts and the downtrodden, vocal demeanor of its casino employees as the primary reasons behind their despondence with the city.
Call me crazy, but maybe the city’s tremendously high employment rates (which are about to get much higher), high crime rates and wealth of disgruntled gamblers also has something to do with its lack of tourist appeal. Just saying.
On a side, the #1 unfriendliest city, Newark, is also in smack dab in the middle of New Jersey. As always, I’m proud to be a New Jerseyian.
iPoker traffic recovers
We conclude with a brief look at current 7-day average cash-game traffic levels across New Jersey’s poker networks.
- PartyPoker NJ: 151
- WSOP.com: 136
- AAPN (us.888poker.com): 53
Data provided by PokerFuse Pro via PokerScout.
Overall, traffic is up roughly three percent over last week, with both PartyPoker NJ and WSOP.com exhibiting moderate gains. 888, on the other hand, would sustain tremendous losses, although these can likely be attributed to the conclusion of its July cashback promotions.
Perennial basement dweller Ultimate Poker hasn’t showed up on PokerFuse’s charts in weeks, although it did hold a short-lived reload match bonus promo this week.
