While the poker community would like to think differently, poker isn’t the linchpin of gaming anywhere in the world. For most land-based casinos, poker rooms are a drain on the bottom line while slots, other table games (blackjack, craps, etc.) and sports betting bring in the most revenues. This is also true for those operations that have full casino gaming, sports betting and poker online; we in the poker world would like to think that the money is flowing in from online poker, but the sports books and casino games rule. Thus, what is currently happening in New Jersey shouldn’t come as a surprise to anyone.
According to the New Jersey Division of Gaming Enforcement statistics, the poker operations of New Jersey’s regulated online gaming industry have been sliding precipitously for the last few months. In May, the total revenues pulled in by the poker rooms fell by 15% compared with the same month last year. While it might be unfair to compare those two situations (in 2014, Ultimate Gaming and its product, Ultimate Poker, was still in the New Jersey market), the fact that the total poker revenues for May were $1,928,106 – or only 15% of the total gaming “win” of $12,474,586 for the month of May – leaves many asking if online poker can recover in New Jersey.
Some have attempted to extrapolate the returns from online gaming as a failure, but PlayNJ.com’s John Darr believes otherwise. “Some are inaccurately characterizing New Jersey’s online casinos as a financial disappointment,” Darr stated. “Nothing about 28% growth year-over-year is disappointing. Lawmakers can’t be disappointed about $30 million in new tax revenue that has been generated by online casinos for the state.”
To cure the ills that plague online poker, Darr suggests something that has been desired in many circles of the online poker world. Darr believes that the poker side of the Garden State’s online gaming industry would benefit from compacts with other states that have legal online poker. At this time, there are only two – Nevada and Delaware, which already share liquidity between each other – and compacting with them would not have a significant impact on their bottom line. Rumblings of a New Jersey neighbor would give the state’s online poker sites a shot in the arm if they were to come live and liquidity established, however.
The Commonwealth of Pennsylvania has emerged in 2015 as the state most likely to regulate online gaming and/or poker within its borders at some point this year. With six different bills to consider for passage (and despite the efforts of anti-online gaming zealots that have been led by Sheldon Adelson’s Coalition to Stop Internet Gambling), it is more likely than not that one will be passed by both segments of the General Assembly. The final vote, however, would come from Governor Tom Wolf, a Democrat.
The passage of a bill in Pennsylvania would allow New Jersey to “bite the bullet” and look to compact with the state for online poker (if that is what is passed solely). Pennsylvania would be a boon to New Jersey’s online poker rooms, at the minimum doubling the action they already have. If this were to come to pass, however, it will take some time; Pennsylvania legislators and regulators have indicated it will take 6-12 months before anything would go active in the Keystone State following enacting of regulations for an online gaming/poker industry.
PlayNJ doesn’t look at the effect that the arrival of PokerStars could have on the New Jersey market (it is thought it would either completely revive the Jersey online poker market or it would remain flat as players came from the other sites in the state). The on-again/off-again startup of PokerStars through Resorts has been delayed several times over the past year and continues to be held up. Resorts, however, seems to be waiting out the situation, starting their own online casino operation in February that has steadily grown in popularity while they await their online poker arm to be activated.
Online poker in New Jersey might not be dead, but it could certainly use some help. Either through compacts with other states or the addition of the mighty PokerStars, the numbers have to come up unless U. S. online poker wants to be treated by online casinos much like it is in the live casino world.
