When Nevada decided to enter the world of online gambling, it chose to only regulate online poker.
While the decision was historic, it has proven a bit shortsighted as revenues have failed to live up to expectations.
Examining the success of the New Jersey iGaming market, Nevada may take the next step and regulate online casino games.
Meanwhile, Governor Sandoval is ready to enter into an interstate compact for online poker with New Jersey, but it appears that politics may be preventing that from happening.
Gaming Policy Committee Examining Casino Games
Last week, the Nevada Gaming Policy Committee met and one of the topics discussed was online casino game regulation.
Nevada chose to only regulate online poker and initially felt that regulating general iGaming would be detrimental to the live casino industry.
However, due to the success of iGaming in New Jersey and the relative stagnation of online poker in Nevada, casino game regulation is getting a second look.
Caesars Acquisition Co-Vice President Michael Cohen told the committee that online gambling has led to positive benefits among live players.
For example, approximately 41% of new live casino players in New Jersey have been able to keep their Total Rewards status alive using online gambling.
To put that figure in perspective, that's 41% of 250,000 new players or over 102,000 players who play both live and online. And that figure was just players from Caesars, not including those from Borgata, Resorts or Golden Nugget.
Also during the hearing, it was revealed that 84% of New Jersey iGaming revenue comes from casino games. That's $125 million of the 148.8 million collected by the iGaming industry in 2015.
Any change in iGaming regulation would need to go through the state legislature and a bill has yet to be proposed on the matter.
However, based on the meeting held last week, we wouldn't be surprised if a draft of such a bill doesn't start floating around chambers either this summer or early 2017.
Sandoval Wants Compact But New Jersey Dragging Heels
During last week's meeting, Governor Brian Sandoval revealed that he was willing to enter into a state compact with New Jersey, calling such a deal a "win-win for both sides."
While there have been some concerns expressed by New Jersey over server locations, some believe that the reason that New Jersey hasn't entered into a compact is more political in nature.
Some believe that NJ Governor Chris Christie is still working an agenda with Billionaire Sheldon Adelson and looking for a way to ban iGaming nationwide.
An article on OnlinePokerReport.com claimed that there were reports that Adelson backed Christie during his failed run at the Republican Presidential nomination.
While Christie will not secure the nomination, there are still rumblings that Donald Trump could pick him to run with him as Vice-President.
Adelson is reportedly also interested in funding Trump's campaign, and putting Christie on the ticket would give Adelson an extra sympathetic ear.
While the matter is being viewed as political, we personally have a bit of a different take.
Online poker between Nevada and Delaware simply isn't liquid enough for New Jersey to go through the process of trying to join the interstate network.
It is our belief that once another state comes online such as Pennsylvania or California, then New Jersey may join with them for an interstate network. The chances of this increases should PokerStars begin operations in either of those states.
Simply, there's not enough money involved to force New Jersey to sign up for the interstate network, and until there is, we don't think it is going to happen.