i see there are 2 (or more?) sites that are in both jersey and nevada, ultimate and wsop. i may be wrong as ive been skimming the news on these states. but if so has there been any news of a compact being formed any time soon? im pretty sure there are a fair amount of cali grinders who would move to vegas if the going gets good.

It will be big news once approved

You hearing anything?

I don't think it will happen, what's in it for New Jersey? I see NJ/NV competing with each other to compact with other states.

More players means more games run.

it would only represent a tiny boost in the player pool for NJ. what they give up in exchange (initiative for bringing other states into their fold) isnt worth it.

I don't understand what they are losing out on?

California is going to decide to go with Nevada or NJ - If I was NJ I wouldn't want to help NV.

I do not understand why NJ would not want a compact with both NV and CA. Why does it have to be one or the other for CA? Why would NJ or any other state not want all states included?

Whoever compacts with NV - NV makes extra tax money - same for NJ I assume.

Nevada and NJ both have a similar provision in their law -- that servers must be based in state and that providers must be approved by the state.

This is where they have the most money to make, at least right now. As an example, iirc NEvada charges 500K to register and 250K a year, in addition to taxing the rake.

So how would a compact work? Well, you could say that the sites have to register and pay fees in both states (provided you can get them to get rid of the rule about the location of the servers), but thats a pretty crappy model, because many states (including nevada) just arent worth it for the miniscule player pool that they have. Including taxes, operational expenses, etc, a NV onlinepoker room probably has to clear six figures monthly. Looking at the traffic on both sites, its tough to imagine theyre doing that in NV. This probably surprises no one in the industry. I dont think anyone really expected single state online poker to be viable, at least in smaller states.


To make matters worse there is a ton of comppteition waiting in the wings. I think something like 20 companies have registered to be online poker providers in NV. THat is to say, paying nevada fees, nevada taxes, and maintaining a specifically nevada operation, right now, just isn't making anyone any money. I would bet NJ is a bit better, but not huge. I kind of wish there was poker scout for US sites.

So the real parqadigm for a compact, and the one that both NJ and NV are anticipating, is something that solves this:

Say michigan wants to leaglize online poker. Rather than make up a whole set of laws, testing procedures and having seperate servers, software, etc, they just enter into a compact with nevada that basically says "Michigan players can play as though they are nevadans on approved sites" the nevada-legal-sites pay a fee to michigan (one thats less than the one they pay to nevada) to become michigan legal too, and Michiganers download and play just as if they live in a cool state.

Michigan probably pays a part of the money they make from the deal to nevada, to defray the expense nevada incurs for being nice enough to regulate their online poker. But thats not the important part. THe important part is now Nevada has a larger player pool to offer sites, and thus a larger incentive to shell out more and more in registration fees.

So call Nevada a primary state, and Michigan a secondary state.

Now a secondary state could, conceivably, enter into agreements with 2 primary states. So, for example, MI could enter into compacts with NV and NJ, but what would be the point? It wouldnt merge the player pools. For example, if MI entered into compacts with NV and NJ, they would just be paying 2 people instead of one to regulate their online poker two different ways.

Two primary states could concievably enter into a compact. For example NV could say "well Nevadans can play on nevada regulated sites, but if the site is regulated by NJ, well thats good enough for us too"

This has two problems. First off, its never going to happen without reciprocity. But the moment sites can register in either one state or the other, theyre going to do so, rather then paying both.

The second problem is that these states are competitors. If there was a fair amount of parity between their population, this would not be insurmountable. But there is not. NJ has something lie 3 or 4x the population of NV. A joint network with two primaries where other states could choose either would be hugely advantageous for NV -- it would quadruple their player pool. If would do very little for NJ -- maybe give them a 25% bump.

So sooner or later, one state (scotty is apparently ruling out CA as a runner to be a primary state but i disagree. I think theyre going to tell both NJ and NV to piss off), is going to be able to provide licenses to offer poker to a hundred million plus player pool in multiple states. And, like the highlander, there can really only be one, because for the most part states and sites have every incentive to gravitate toward the biggest. I suppose its possible for there to be two primaries -- if you devide the states up just right.

What i see is this. Cali is going to legalize it in 2014, and they are also going to try to become a primary state. Then cali, NJ and NV are going to fight it out over Illinois and maybe NY and PA. Sometime in late 2014-mid 2015, a single regulated player pool will emerge.

Fantasizing about the federal government stepping in and making it legal for everyone? Don't, its never going to happen.

If NJ was planning to enter a NV compact, there wouldnt be legal online poker in NJ right now. Thats why NJ came out of left field and got it legalized so fast, to prevent NV from getting the jump on them. Compare the proccess for legalization in NV and NJ and how long everything took from conception to first hand dealt to see what i mean.

As an ever better comparison, compare the legalization proccess in NJ to the legalization proccess for practically anything else gambling related in NJ. As a basis for comparison, i think it took them about 4 years to approve Razz in cardrooms.

http://www.usatoday.com/story/news/n...bling/2875897/

NJ's taxes are much higher so they have less to offer in a compact.

NJ has 3 or 4 times the potential players and allows casino games. It also has a much larger porportion of its population with no easy access to a BM casino. Its a better market in practically every way, and probably worth a higher tax rate, at least arguably.

The reason their will be compacts is that it will make life easier for the sites like WSOP and Ultimate Poker. They don't want to have to keep creating separate units each time a state comes on board. California compacts with other state on the Powerball even though they out sell all other states. This needs to get done soon and we might have to give them a push.

Does anyone know who we should contact on this subject? Gaming Commissions? Governors? These compacts are huge for the future of poker.

the nevada law that makes compacts possible gives the governor the authority to make them.

but its not going to happen

Thank you Turyia for that explanation. Been looking for that.

The states do not care about making life easier for the poker sites. All they care about is tax revenue and how to increase it. That is all.

That was my point with the Powerball comment. It just makes the pie bigger for everyone.

http://www.cardplayer.com/poker-news...s-winning-year

I played with a player tonight (Ray Davis) who swore to me he was in NJ. I'm in Vegas. Possible?

No.

Dont believe what that clown says he always says stupid stuff in the chat.

Looks like Nevada and Delaware have got their stuff together. This is good news. We just need to get New Jersey on board.

http://m.reviewjournal.com/news/neva...er-partnership

Some working Links: RJ - ESPN. This has some exciting implications, get on board NJ!