It’s not quite the interstate gaming arrangement we were looking for, but it’s a start. On Thursday, the New Jersey Division of Gaming Enforcement announced that it has approved deal in which Scientific Games will operate an online gambling product from Atlantic City, but for Delaware players only.
The New Jersey DGE issued the following press release:
Following regulatory approval by New Jersey’s Division of Gaming Enforcement, the Delaware State Lottery, Scientific Games and Caesars Interactive Entertainment (Caesars) today announced an agreement that will permit SG Interactive, a division of Scientific Games, to provide game content from servers located in Caesars’ data center in Atlantic City to the Delaware Lottery’s online gaming platform. Those games will only be available to Delaware online gaming patrons. This is the first such agreement regarding casino game content between states with authorized Internet gaming.
“This arrangement exemplifies a great collaborative effort between the Delaware Lottery, the New Jersey Division of Gaming Enforcement, Scientific Games, and Caesars Interactive Entertainment,” said David Rebuck, Director of the New Jersey Division of Gaming Enforcement.
Marco Ceccarelli, Senior Vice President and Chief Information Officer, Caesars Interactive Entertainment, said “We are happy to do our part assisting regulators in New Jersey and Delaware and appreciate their progressive and innovative work to help continue to grow and push the regulated online gaming market forward in the United States.”
“The Delaware Lottery commends the cooperation of all parties involved in this endeavor and compliments the New Jersey Division of Gaming Enforcement for their professionalism and diligence throughout their administrative and regulatory process,” said Vernon Kirk, Director of the Delaware Lottery.
It seems like an odd agreement, as what is the point of having Delaware residents play on a New Jersey-based site without New Jersey residents able to participate, as well? The answer to that is unclear, but one might guess that this is a test run of sorts, a way to see if the technology properly implements the necessary restrictions and regulations across borders. It also gives Caesars a foot in Delaware’s door, as the three internet gaming sites in the Blue Hen State all operate on 888’s platform.
As the press release said, this is the first interstate agreement that involves casino games (and one might guess that this is a casino game-only agreement). Delaware and Nevada share liquidity, but that is only for poker, as online casino games are not legal in Nevada.
Liquidity in casino games such as blackjack and craps is not nearly as important as it is for poker. In poker, liquidity breeds liquidity. The sites with the most players at their tables tend to generate more traffic because prospective players see the activity and decide to sign-up. Conversely, online poker sites with empty tables have trouble growing because potential customers see the dusty tables and move along, as there is no reason to deposit if they won’t be able to find a game.
