The online poker landscape changed dramatically in the United States last week when the New Jersey Division of Gaming Enforcement approved PokerStars to offer iGaming services in the state.
With their decision they set a precedent regarding bad actors and may have opened the door for PokerStars to expand to other states with little or no resistance.
Below we look at a couple of reasons why the NJ ruling will ultimately expedite PokerStars' expansion in the regulated U.S. online poker marketplace.
PokerStars is a New Company
When the Rational Group was sold to the Amaya Gaming Group in 2014 many felt this was simply a way to cut ties with Isai Scheinberg.
The popular opinion was that it was "same company, different label." That is one reason why the DGE spent over a year reaching their decision over PokerStars.
DGE Director David Rebuck recently admitted that they thoroughly investigated the sale of the Rational Group to Amaya and ultimately they came to a positive conclusion on the company
Simply stated, the DGE has confirmed with their licensing that PokerStars is indeed a "new" company and not the same product offered pre-Black Friday.
Yes, some of the same people may work there, but it should be obvious with some of the changes the company has made in the last year that a different philosophy is driving the company.
PokerStars Can Prove Itself in New Jersey
With the exception of Pennsylvania and California other states are over two years away from legalizing online poker This gives PokerStars time to prove it can operate legally and responsibly in the United States.
Let's view the New Jersey licensing as PokerStars "probationary period" for operating in the United States. If the company operates responsibly and provides +EV for the iGaming industry, other states will welcome the company with open arms.
What to Expect in the Near Future for PokerStars in America
The next few months will center on the New Jersey launch of PokerStars. The world will watch what happens and what type of impact it has in its first few months of operation.
Following the NJ launch, attention will turn to Pennsylvania. It is the next state likely to legalize online poker. Barring issues with the NJ launch, we think that PA will take a chance with PokerStars as well.
Next, we think that internal and external pressures will force the Pechanga to either come to a compromise or abandon their positions against PokerStars.
Simply, Pechanga's position on the company can no longer be justified and we could even see a resolution to that issue in 2016 with regulation happening in 2017.
Other states will watch what happens in New Jersey over the next year and we estimate anywhere from three to six states to begin discussions on iGaming and iPoker regulation as a result of what PokerStars brings to the NJ market.
New Jersey didn't "open the floodgates" for PokerStars but it may have removed any real roadblocks for the company in terms of future expansion. Now it is up to PokerStars to operate responsibly and prove it belongs in the regulated U.S. market.