No New Rival for New Jersey Operators

In late November, the New Jersey Division of Gaming Enforcement announced the public launch of internet gaming in the state. Five operators and seven skins started business and now they seem to have got rid of a strong rival for the time being, as the DGE denied granting a license to Rational Group.

On Monday, 25 November, legal online gaming officially and publicly launched in the US State of New Jersey, following an announcement from the Division of Gaming Enforcement (DGE). Five networks participated in the testing phase that preceded the start with seven individual rooms. Of these, six were approved to enter the market with live operations but it was the decision of the management of the seventh, Golden Nugget, to continue testing for another week. A number of issues did emerge during the testing period for all operators, including geolocation and deposit procedures, but the majority of these have been successfully eliminated.

Several of the major international operators applied to be allowed to operate in New Jersey. Eventually, however, only few of them succeeded with 888 casino and poker room receiving one of the licenses, in cooperation with the All American Poker Network (AAPN) and accompanied by PartyPoker’s two skins; Ongame’s BetfairCasino.com and the aforementioned Golden Nugget; 888 software licensee but otherwise independent WSOP.com; and the first ever domestic legal online poker room in the USA, UltimatePoker.com.

For a short while, it appeared that players from outside the US would also be able to play in New Jersey rooms, but it was later clarified that rooms would have to relocate and gain regulatory licenses in the state to be able to provide this option, which would not include a shared liquidity with the international market.

Following negotiations with the Atlantic Club and then Resorts Casino Atlantic City, the largest international actor on the market, the Rational Group also applied for a license in the newly formed regulated market. However, the New Jersey DGE has just recently suspended the evaluation process, on the basis of maintaining a close association with company founder Isai Scheinberg.

Scheinberg is wanted in the US for the illegal activities his company pursued in the country after the UIGEA of 2006. He resigned from his position as CEO of the Group in the summer of 2012, specifically in order for his company to be able to pursue negotiations with the opening regulated markets. It is therefore a great disappointment for them that the DGE has denied licensing them and locked them out of the state for a minimum of two years. However, if significant changes in the circumstances occur – whatever that means for Scheinberg – the regulatory body is willing to resume reviewing the application, as reported by the DGE and the Rational Group.

For all intents and purposes, though, the live operators in the New Jersey market can rest assured that no major rival is threatening their business for the time being.