Shared liquidity between online poker operators was made possible as Nevada and Delaware initially decided to join their online gambling markets and New Jersey later signed-up as well. The shared liquidity compact between the three states allows iGaming operators to offer their services to an extended player pool as players from all three.

1. Poker depends on shared liquidity more than any other gambling activity, according to Lee Jones, director of poker communications at PokerStars.
2. Playtech today announced the launch of its shared-liquidity iPoker network in France and Spain. The London-listed technology supplier has partnered with Betclic and Unibet in France, and bet365, Betfair, Casino Barcelona and Sportium in Spain.

Given the somewhat high level of success that shared liquidity online poker has achieved in New Jersey, the focus has shifted to the long-awaited but pending launch of online poker in the Keystone State. However, there is some bad news – the Pennsylvania Gaming Control Board has stated that at the present moment, it is not able to predict the likelihood that online poker operators in Pennsylvania will be able to combine their state player pools with those in Delaware, Nevada, and New Jersey where online poker is thriving.

Shared liquidity or the merging of player pools is increasingly becoming a vital aspect of the online poker industry both in the United States and the rest of the world especially because it allows the casino operators to offer their customers a wider range of games as well as bigger tournament prize pools. These are definitely significant factors as they give more incentive for the participation of more players at the online poker tables. In general, it culminates in a win-win situation with some of the most notable results being more satisfied customers, greater revenues for operators and, of course, more tax revenue for state authorities.

As it stands, only three states – Delaware, Nevada and New Jersey – have a shared liquidity agreement for online poker under the Multi-State Internet Gaming Agreement (MSIGA). It is worth noting that at present, it is only the All-American Poker Network (AAPN) which consists of 888poker and WSOP.com that operates across multiple all three states. All the rest operate only in New Jersey and therefore Pennsylvania poses the best option for operators in New Jersey hoping to expand their online poker offering in the country.

Shared Liquidity Poker App

Even though there has been a general agreement in the past couple of months pertaining to the likelihood of the Keystone State joining the Multi-State Internet Gaming Association, recent comments from the Pennsylvania Gaming Control Board have not been very reassuring. These have raised concern about whether online poker is even in the cards.

“While an interstate compact could certainly occur, at this junction I can’t predict or comment on the likelihood,” Doug Harbach, Director of Communications for the PGCB commented.

Why Is Pennsylvania Important?

As mentioned above, operators in New Jersey will benefit most if and when the Keystone State joins MSIGA. This does not mean that the online poker industry in New Jersey is in trouble. In fact, it remains to be the most profitable internet gambling state in the United States. However, gambling revenues in the state have not increased since the interstate merger and hopefully, Pennsylvania can help push the profit margins up.

Shared Liquidity Poker Strategy

Some of the factors that are causing the stagnation of the state’s internet poker market are pretty easy to identify but their overall impact is still debatable. For instance, in New Jersey, poker players have a wide range of gaming options while residents of Nevada only have WSOP.com. For shared liquidity to work, more sites need to have offerings across a number of state boundaries.

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Online poker in Italy was expected to become big business in 2010, when the properties of liberalization finally came into effect. Distinguished operators throughout Europe were licensed to operate within the Italian market, but its ring-fenced nature has steadily smothered any margin of profitability. Now, it seems Italy is finally considering sharing online poker liquidity.

Italian gaming attorney Giulio Coraggio of the global law firm, DLA Piper, revealed that Italy may be preparing to open the international flood gates to its internet gambling market. He spoke of drafted (but as yet unpublished) legislation aimed at reforming the current iGaming market to bring bettors back to the virtual gaming market, and international shared liquidity is right at the top of the new menu.

In a statement last week, Coraggio said, “Italian gaming laws are going to be considerably amended as part of the so-called Delega Fiscale law which, among others, is likely to change the regime of sports betting and poker tournament to 20-percent Gross Gaming Revenue.”

According to Coraggio, among the legislation’s multiple benefits is conceptual law that would greatly expand the role of Italian gaming regulator, Amministrazione Autonoma dei Monopoli di Stato. The AAMS would take on more direct responsibilities in the development of domestic gambling policies, and would work closely with other European regulatory bodies.

“In the last draft of such law,” claimed Coraggio, “a new provision was introduced to allow the management of games by the Italian gambling regulator, AAMS, together with the authorities of other countries.”

Italian Online Poker Market Diminishing

Italy is facing a disastrous situation that has seen its online poker market diminish drastically year over year. In 2014, cash game GGR dropped 21% compared to 2013, while online poker tournament participation saw a similar descent of 18%. Italy is currently generating €178 million in online poker GGR; a mere fraction of its value prior to regulating and ring-fencing the market.

Like Italy, online poker markets throughout the world have experienced significant decline in patronage and revenue, with ring-fenced markets taking the brunt of the assault. The general consensus from vested interests is that opening those fences to shared liquidity presents the best opportunity to overcome such hurdles, and create a more appealing marketplace for both operators and consumers.

Shared Liquidity Poker Rules

“The online poker market is facing considerable difficulties worldwide and in countries like Italy, Spain, and France the impact of such crisis might be even higher given that they are closed loop markets,” rationalized Coraggio. “But if poker international sharing liquidity will be allowed, the scenario might considerably change.”

Other iGaming Venues Looking Up in Italy

Shared Liquidity Poker Games

On a brighter note, despite the flagging online poker market in Italy, other interactive betting venues have been on the rise. Online sports betting and casino gambling—the original catalysts of the Italian iGaming market—continue to grow.

The most significant increase has come from mobile gambling. According to AAMS reports, betting on mobile devices rose 104% in 2014 compared to the previous year, accounting for an estimated 13.7% of the total Italian online gambling market’s GGR in 2014.

Potential for Italy Online Poker without Borders

If Coraggio’s assessment of a reformed online poker regime holds true, the end result could be a complete turnaround in the appreciation of the Italian market. It would allow the country’s largest operators, like PokerStars.it and iPoker.it, to share their global networks with their Italian player base.

PokerStars.it, for example, currently averages 1150 players, while its unfettered international operation is home to a 7-day average of 15,500.