COMING TO
AMERICA
T
he dust has finally settled on the North
American egaming industry for 2013. In a
historic year for across the Pond, Nevada,
Delaware and New Jersey have all launched
regulated online gambing markets.
The industry’s eyes are now on these firebrand
states to see if regulated internet gambling will be
a success. Should financial gains be as lucrative as
expected, next year stands to be even more frenetic as
egaming power players snatch up their share of North
America’s fastest growing market.
For European suppliers the most lucrative US
markets are those yet to come. Nevada is currently
a two-player market, with Ultimate Poker and the
Caesars-owned World Series of Poker the only
platforms live in the state. Poor liquidity and lengthy
testing processes have seen operators focus their efforts
on New Jersey, where expected revenues are higher.
Delaware, meanwhile, where gaming is overseen by
the state lottery, is pretty much a closed book to all but
888, WMS and Scientific Games, which won a joint
bid to provide its software and platforms.
So there has been a great deal of speculation over
which states will regulate egaming in 2014. The general
consensus is California or Pennsylvania will be the first
to reveal their hand, with Illinois, and maybe even New
York, not far behind. Each state faces its own barriers
to legalisation, but with big markets and even bigger
revenues at stake, the momentum created this year
might just see those hurdles overcome.
GOLDEN OPPORTUNITY
The framework for online gambling in California is
almost perfect. With a population of more than 38
million people, potential revenues are huge and unlike
most other states it can easily sustain its own poker
liquidity. And with three separate online poker bills
currently under consideration, there is a clear desire
for legalised egaming in the Golden State.
This time last year California’s Native American
tribes remained divided over how online poker should
be regulated, who should be allowed to partake, and how
much it should cost. The only joint effort between those
interests – the California Online Poker Association –
crumbled as legislation failed and its larger members
grew tired of waiting. A handful of gaming tribes bit the
bullet and entered online partnerships, including the
United Auburn Indian Community with bwin.party,
while the influential Pala Band of Mission Indians
has launched its own interactive business. Yet from a
legislative point of view, it’s been a stalemate.
Yet recent months have shown what seems to be
a growing impetus for the tribes, plus legislators,
regulators and egaming operators, to sit round the
table and discuss a bill to meet everyone’s needs.
While all three bills would only permit online poker,
differences in the proposals prevent interested parties
from agreeing on a single bill to suit all parties. The
main areas of disagreement have been the licence fee,
“bad actor” prohibitions, tribal regulatory involvement
and licence eligibility, with some politicians arguing
46
racetracks should be able to offer online poker.
Unsurprisingly in a state where tribes have the exclusive
right – along with card rooms – to any form table games,
the latter suggestion has not been well received.
If any bill is going to progress it will need the
backing of the tribal community, which remains
staunchly protective of its sovereignty and gaming
revenues. A draft introduced earlier this year backed
by eight tribes including Pechanga, Agua Caliente and
Borona appears the realistic way forward from here.
WAITING IN LINE
With a population of more than 12.5 million,
Pennsylvania is among the biggest prizes to be won
in the shift to a regulated US market. Not only does it
have a sizeable population, it also boasts a successful
land-based casino market and a relatively high level of
personal wealth.
Senator Tommy Tomlinson brought the prospect
of egaming there back to life in September when he
announced he would reintroduce a bill to legalise
internet gambling in the state. Previous attempts to
STATE
PENNSYLVANIA
STATUS:
POPULATION (M)
GDP PER CAPITA (000s)
13M $44.3
MARKET SIZE ($)
800
700
600
500
400
300
200
100
0
SOURCE: EILERS RESEARCH, LLC
$585
www.egrmagazine.com