Can WSOP.com Achieve a 4-State Poker Network Quickly Enough?

WSOP.com 888 Poker Caesars Online

WSOP.com could be the first site to network online players in Nevada, Delaware, New Jersey, and Pennsylvania.

WSOP.com is the lone online poker operator in Nevada and Delaware, but that might not always be so. If WSOP.com is to be a viable competitor to PokerStars and PartyPoker in the New Jersey and Pennsylvania gaming markets, it is going to have to be quick.

Everyone knows that online poker depends on shared liquidity and large player pools. A big community of players drives interest in an Internet card room, because it increases the number of poker events, the number of cash games, and the big guaranteed prize pools that draw casual players.

For WSOP, 2018 could be the pivotal year for its American online poker community. WSOP.com is the only competitor in the Nevada casino market, after Ultimate Poker folded its operation there.

In Delaware, 888 Poker (WSOP.com’s partner) runs the three online poker sites, which are associated with Dover Downs, Delaware Park, and Harrington Racecourse. Because the Delaware Lottery runs the gaming, though, there is no incentive for Delaware gaming sites to seek partnerships with other poker operators.

Multi-State Internet Gaming Association

The governors of Delaware and Nevada signed the Multi-State Internet Gaming Association (MSIGA) in 2015. The MSIGA, which is based in Delaware, allows the two states to share player liquidity. Poker money raked from Nevada-based players stays in Nevada, while money raked from Delaware-based players stays in Delaware. Potentially, it is a huge deal for Delaware, because it gives residents access to a bigger prize pools, though the player pool in Delaware is small enough it hardly matters to Nevada.

Where the multi-state poker compact is important is the potential for adding other big states. In December 2017, New Jersey signed on to the MSIGA. New Jersey has a bigger player pool than Nevada and Delaware put together, so it is a huge potential development. A few challenges arise from New Jersey’s inclusion, though.

New Jersey Online Poker

New Jersey laws requires “equipment” used for its online gambling activities to be located inside New Jersey. While departing State Sen. Ray Lesniak has tried to loosen those restrictions, it means that WSOP.com’s poker servers need to be located on Atlantic City servers for it to accept New Jersey players.

Presumably, WSOP is making the changes needed to participate in the New Jersey gaming market. 888 Poker and WSOP.com have a deal with Harrah’s Atlantic City and Caesars Atlantic City, so WSOP.com already has a player pool ready, allowing it to network the three states’ community of players into one large network.

PokerStars and PartyPoker

That is good, but it presents the second problem. PokerStars and PartyPoker dominate the New Jersey gaming market at the moment. The 888/Caesars/WSOP brand has respectable numbers, but they are behind the competition. PokerStars/Resorts Casino and PartyPoker have much bigger poker networks on the international scene, so they can leverage those communities to draw more customers from New Jersey.

The advantages go beyond that. PokerStars and PartyPoker each have world-class card playing software and poker platforms, so players would tend to gravitate to their sites anyway. Few PokerStars or PartyPoker players in New Jersey are likely to switch, so WSOP.com needs to collect bigger player communities in Delaware and Nevada (especially) while they have monopolies there.

Pennsylvania Online Poker

In the end, Pennsylvania might be the pivotal state for WSOP.com’s future. In October 2017, Pennsylvania signed into law an online poker bill. While Pennsylvania is not a member of the Multi-State Internet Gaming Association, the bill had provisions to sign on to a multistate poker compact. Most expect Pennsylvania to join MSIGA.

If so, then WSOP.com and 888 Poker likely will have a deal with Harrah’s Philadelphia, a land-based casino of long standing. The trick for WSOP is to get their 4-state poker community up-and-running before big competitors like PokerStars and PartyPoker get their Pennsylvania/New Jersey connections up to snuff.

2018 Online WSOP Events

Being on the ground floor would be huge. It would allow WSOP.com to build a Pennsylvania customer base before the giants of the industry get involved. Customer loyalty might take over and give WSOP a longstanding advantage — or at least allow it to compete on a more equal footing.

WSOP.com and its partners have one advantage. The World Series of Poker is going to have 4 online events in 2018. That should be a great opportunity to sign up players in Nevada, Delaware, and New Jersey — the only states online poker will be legal in time for the 2018 WSOP. In 2019, expect to see those online WSOP events to remain (or increase in numbers) — in time for Pennsylvania’s inclusion in US online poker.