A round-up of the good, the bad, and the ugly in a week that saw Nevada and Delaware sign the first US egaming interstate compact, while NJ Governor Chris Christie slashed egaming revenue estimates
Story of the week
Nevada and Delaware sign groundbreaking state compact
Nevada and Delaware made US egaming history this week when they signed the first interstate compact, or Multistate Internet Gaming Agreement (MIGA) to allow poker players in each state to play against each other.
The structure of the document is such that other states can be easily added to the agreement as and when they regulated egaming. Although MIGA is currently internet poker only, other states that join will be able to decide whether they chose to pool liquidity over online slot and casino games as well.
The move will provide a boost to online operator 888, currently the only operator to be licensed in both states through its deal with Caesars in Nevada and as part of a consortium that supplies the Delaware State Lottery with its online platform.
California online poker back on the agenda
Progress is on the horizon in California after two new online poker bills were submitted in time to be considered in the forthcoming legislative session.
The Pechanga-backed AB 2291 bill has been supported by a consortium of eight tribes and would allow for unlimited 10-year non-transferable licenses featuring a US$5m license fee.
The second bill, SB 1366, has been authored by Senator Lou Correa and is similar to his previous SB678 bill which set the license fee at $10m and tax at 10% of GGR.
Both bills have urgency statutes, which mean they can take effect immediately if they are approved by a two-thirds majority vote in each house of the legislature.
NJ Governor slashes egaming revenue estimates
New Jersey Governor Chris Christie has downgraded earlier estimates on how much tax revenue the state would generate through egaming by more than 500%.
Christie had predicted gross gaming revenues from internet gambling would hit US$1.1bn in the first seven months from launch, generating around $200m in tax revenues for state coffers.
Yet in his latest state budget plan announced on Tuesday, Christie revealed he now expects egaming tax revenues to reach just $34m for the fiscal year that ends 30 June, and predicted that number would increase to just $55m the following year.
Quote of the week
“From the very beginning, TIGA organizers have known that there is an opportunity for tribes to work with other jurisdictions that already have significant experience and an established track record with internet gaming,” said TIGA spokesman Jeffery Nelson on the Isle of Man government seeking to compact with the tribal egaming alliance.
In other news: