New poll: Who will be PokerStars' main US competition?
If the operator is granted an American egaming licence under intrastate or federal legislation, which competitors will be able to put up the biggest challenge?
One of the more significant aspects of PokerStars’ settlement with the United States Department of Justice last week was the fact that the deal opens the door for the operator to return to the American market if it secures the necessary licences.
Having operated in the jurisdiction for close to five years following the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) – before seeing its US operations shut down on Black Friday amid allegations including UIGEA violation being levelled against its principals, some have felt that the Isle of Man-based operator has something of a head-start on its rivals.
This is even ignoring the deal agreed between PokerStars and Wynn in March 2011, put to one side after Black Friday, which could potentially be revived if a land-based deal is required for Stars to operate in the US at a federal or state level.
However, there are a number of parties making solid progress towards obtaining licences and/or laying the framework for a long-term presence in a market which many hope is set to open sooner rather than later.
Bwin.party, whose CFO Martin Weigold had previously spoken of the need for “something to happen” to PokerStars and said “Until any action is taken against PokerStars that results in them shutting down, we are unlikely to see a huge benefit,” has agreed significant deals with MGM and Boyd Gaming which would appear to stand the London-listed operator in good stead when the market opens.
Both partners, as well as bwin.party itself, have applied for Nevada egaming licences although all are yet to appear on the agenda for the Silver State’s Gaming Control Board, the next step required if they are to follow Shuffle Master, Bally and IGT in receiving approval to operate in the first state to issue online poker licences.
Caesars Interactive Entertainment is also pursuing Nevada accreditation, and has US-facing agreements in place with both 888 and Groupe Lucien Barrière. The former of the deals, even before its renewal early this year, was the first partnership between a Nevada licensee and a foreign online operator to receive Nevada Gaming Commission approval.
When asked about potential US market leaders by eGaming Review, a number of commentators have suggested Zynga as one of the main threats to PokerStars replicating its European market dominance back in the United States.
Ranked number one in the recently-released Social Casino Intelligence Power 25, the social gaming giant recently announced that it plans to move into real-money gambling in the first half of 2013, and has already opened a tender for an online poker platform as well as engaging in talks with regard to bwin.party-owned network Ongame.
Throughout the last decade a number of online operators have risen from relatively modest standings to reach or challenge market-leading positions in a number of jurisdictions, with Winamax’s success in France among the most recent.
With several land-based operators poised to take on the American egaming market, the bullish South Point Poker and Monarch Interactive the latest to be given a date for a Nevada hearing, might we instead see an as-yet-unheralded online presence prove the greatest threat to PokerStars in the US?
To have your say, vote in the poll on the right-hand side of the page or visit the eGR LinkedIn Group.