Will NJ and the UK Pool Online Gambling Liquidity?

by Jim Hall

New Jersey & UKThe state of New Jersey is considering sharing player liquidity with the United Kingdom in regards to online gambling. Will the two ever work together and will it beneficial for both areas?

The state of New Jersey is currently at the top of the leaderboard when it comes to online gambling in the United States. Beating out Nevada and Delaware, New Jersey earns the most revenues and sees the most player traffic at online casinos as well as poker sites. The state has also been one to step outside the box and really try to see the industry grow, working with such brands as PokerStars as well as considering sharing player liquidity with other countries.

Sharing Player Liquidity; Will It Work?

To share player liquidity basically means that the state of New Jersey would allow online gambling sites such as the Borgata Casino to offer their players the opportunity to take part in gaming at sites located in other countries and vice versa. Currently, only players located within the borders of New Jersey can access online casino and poker gaming.

New Jersey Department of Gaming Enforcement Director David Rebuck has discussed working with the United Kingdom and sharing player pools. Working with the United Kingdom could vastly improve revenues in the state. In New Jersey, there are 9 million residents. In the United Kingdom, there are 63 million. Working together would signify a vast increase in the amount of players who could access online casino sites in the state.

How Would It Work?

It seems like a simple process. Online casinos in the UK would allow New Jersey players and vice versa. But the process is nothing but simple. According to Rebuck, there is still much to figure out including specific regulations, the tax rates and how it would apply to each jurisdiction, geolocation issues and player ID, and much more.

When online casino game play first began in New Jersey, players had difficulty creating accounts and logging in due to geolocation issues. The technology would not allow players who were located within the state borders to log in even though they were in the right location. So would the state equally have issues when trying to determine the location of someone in the United Kingdom? One would assume so, even if such issues have been solved for some time now. The United Kingdom is further away and a much larger area to consider.

Considering Current Regulations

You must also consider current regulations in regards to online gambling in the state. Currently, casino style gambling can only take place in Atlantic City. Servers have be located in a specific area of the state in order for a land based venue to partner with an online provider and set up online casino gaming. How would these regulations be changed to allow the state to work with the United Kingdom? Perhaps a work around could be created to help but this is not a definite possibility.

Also to be considered is PokerStars. The brand is already operating in the state and in the UK. The brand is a lucrative one that provides services around the world and could be a driving force behind the efforts to see player pooling take place. The brand would have much to gain if it were allowed.

Will It Ever Happen?

As to whether or not New Jersey and the UK will work together, only time will tell. We do know that legislators are in discussions and considerations are being made but with so much to think about and cover, it would not be surprising to see that the option never comes to fruition or it could be years before any action takes place. We will certainly stay tuned and wait to see if New Jersey becomes the first state to share player liquidity with another country.