The current expansion of online poker into additional states in the United States has placed greater attention on how each state’s online poker goods will appeal to players. This is in addition to the ongoing regulatory developments.
When it comes to playing online poker, liquidity is essential. Enough players must be present to ensure the game’s profitability and a gratifying experience for its participants. More players mean better games and more alternatives in poker, whether it’s played live or online.
Could USA online poker sites implement and benefit from this? Let’s look at the benefits of liquidity in online poker and discuss how this may be done in the United States.
A Case Study of Successes
For online gambling businesses and governments that want to raise tax income, bringing together poker players from across states or even national boundaries is proving to be a lucrative approach. Many online poker sites can boost their liquidity by bringing together players from different jurisdictions who would otherwise play in isolation.
Online poker providers in Europe, France, Spain, and Portugal have been able to pool their gamers to form a single pool for a while now. As more people play online poker, tournament prize pools get larger and the number of games available increases. Both have a substantial impact on the growth of revenue.
European pooled liquidity had an immediate financial benefit as the first online poker operator united French and Spanish players. Soon after the merger, poker traffic increased dramatically, as was to be anticipated. Even after the initial excitement had worn off, traffic levels remained healthy. It achieved a higher level of activity than the combined levels of the French and Spanish markets before the merger.
Additionally, the operators increased the guaranteed amounts of cash prizes that would be offered in their standard weekly tournaments. This decision indicated confidence that the merged player pools will enhance involvement. The European network that includes France, Spain, and Portugal is by far the biggest ring-fenced player pool in the world, both in terms of income and the volume of traffic it generates.
Shared Liquidity Poker in the United States
As it stands, multi-state liquidity in the US benefits one poker network. 2015 marked the debut of Nevada and Delaware’s traffic pooling. In 2018, when no other states had online poker, New Jersey joined them. Only the World Series of Poker (WSOP) serves Nevada. Delaware’s lone internet gaming firm is 888, the WSOP’s technology partner. Their All-American Poker Network is the only interstate US poker network.
Michigan online poker sites have joined the compact in 2022. Pennsylvania, West Virginia, and Connecticut are all up for debate. West Virginia and Connecticut might theoretically be added to this. These states have legalized online poker. However, the markets are too tiny to attract any operators without a shared pool. In contrast, New York whose potential to join the pact is still in limbo would be a significant reward for any multistate network.
Negotiating agreements for something that does not exist yet is not high on the priority list for many state authorities. If interstate poker proves to be more profitable, this might all change soon.
The aggregate population of the four states now sharing liquidity is around 22 million. This pool may be expanded to roughly 36 million if Pennsylvania joins. However, the state is taking its time with this decision. The market would still be less than one-third the size of the European network. In terms of participants and income, it may be closer to half the size owing to improved tournament guarantees and game options.
Important Considerations
Liquidity may be established by considering how many hours a day an online poker network can operate profitably. A player may be unable to find a game they want to play if they attempt to visit the online poker room at the same time as everyone else in the same time zone as them. By allowing players from various time zones to use the online poker room, it enhances the possibility that the online poker room will see more traffic for longer.
A proposed compact’s player pool should be evaluated with this in mind: not every player pool is the same! To begin, the percentage of people who take part varies by demographic. A correlation exists between a jurisdiction’s gross domestic product, internet availability, and cultural views toward gambling and online poker participation.
As such, lower GDP, less internet access, and stricter cultural attitudes on gambling would likely result in lower online poker participation rates.
All parties participating in online poker benefit from a high level of liquidity, which is essential for the long-term viability of an online poker network. Interstate compacts will likely get more airtime in the future. How much liquidity will be required in the United States to support and profitably run online poker rooms remains to be seen.