Breaking News: Nevada and Delaware Create First Interstate Online Poker Pact

Poker players woke up to more good news this morning with the announcement the nation’s first interstate poker pact is currently in the works.

Nevada and Delaware, the first two U.S. states to legalize online poker, agreed to form a partnership that is expected to allow poker players in those two respective states to play and compete together in online games.  This pact applies only to poker.

Most industry experts agree that pacts of this kind are absolutely essential for online poker to succeed in the United States since many states lack enough of a population base to support stand-alone intrastate poker games.  Unless federal legislation is signed into law that legalizes and regulates online poker nationally, most states will be required to work together in order to create what’s called “liquidity.”

Liquidity means having enough players and games going at one time for a site to be operational on a continuous basis.  It should be noted that small states such as Delaware don’t have enough online poker players for gaming websites to succeed, let alone be profitable.  Even in Nevada, America’s biggest gaming market, online poker has experienced considerable challenges to growth.  The potential for success remains severely limited without more players, which means interstate pacts like the one just signed by Nevada and Delaware are essential.

This news story broke in the Las Vegas Review-Journal and was announced as one of the spinoffs of this week’s meeting of the National Governors Association, which took place in Washington, D.C.  This breaking news story by Steve Tetreault can be read in full at the LINK HERE.

David G. Schwartz, Director of the Center for Gaming Research at the University of Nevada-Las Vegas immediately tweeted out the bigger question many are already asking in relation to this big announcement.  His tweet read as follows:  “The big question is, will New Jersey join with DE/NV now?”

Indeed, that’s the real tipping point, not only for those three states which have already legalized online poker but quite possibly for something much bigger — a broad coalition of multiple states working together to create a workable online poker market that could number millions of potential players.  Should New Jersey agree to a similar interstate alliance, it’s likely just a matter of time before other large states population-wise legalize and regulate online poker, as well.

Speaking only for myself and no one else, my own view of this breaking news story is as follows:

Short of getting a federal bill legalizing poker signed into law, this is as positive development for the return of online poker to the United States as possible.  It’s a monumental first step in what will soon become a workable alliance between multiple states, which benefits not only poker players but essential government programs to be aided by budget revenues acquired from a percentage of online poker revenues.  This also proves that with bi-partisan leadership and broader cooperation, a responsible 21st Century approach to online gaming is possible.  Everyone wins with today’s announcement.

At 11 am EST this morning, the two governors held a press conference in Wilmington, DE.  The question-answer session at the end was especially insightful, which shows both governors know this subject matter surprisingly well.  Here’s a ten-minute clip of the joint announcement by both governors as well as a discussion as to what this means for online poker in Nevada and Delaware, and beyond.  LINK HERE

Two important quotes from the news conference by Delaware Gov. Jack Markell:

(1) “We all benefit if we have more states participating.” 

(2) “We’d love to have New Jersey as a partner, as well.”

An excellent analysis of the implications of this news can be read at OnlinePokerReport.com.  You can see Chris Grove’s excellent piece — CLICK HERE.

Today’s news comes one day after the announcement that monies owed by the former company known as Full Tilt Poker to American poker players will be returned within the next week.

Let’s hope there’s more good news to come.