PokerStars, FullTilt back in the US

It’s been a big couple of weeks for big-name re-entries into the US online gambling market. First PayPal; now PokerStars and sister site FullTilt.

On Wednesday this week, Amaya put out a press release announcing they had just been granted approval by authorities in New Jersey to operate their two major brands in that state.

Amaya Inc. today announced that the New Jersey Division of Gaming Enforcement (the “DGE”) has authorized it to operate the PokerStars and Full Tilt brands in New Jersey. The approval follows an unprecedented review by the DGE of Amaya’s acquisition of PokerStars and Full Tilt in August 2014.

Amaya is currently in an agreement with Resorts Casino Hotel in Atlantic City to provide online poker and casino offerings in New Jersey through the PokerStars and Full Tilt brands

There was no word on when New Jersey adults will be able to register and play at the PokerStars or FullTilt (US player) sites, only that Amaya, ‘anticipate providing additional details of our launch plans in the near future.’

Also no word on whether the offering will be poker only, or poker and casino games. The latter is is more likely according to most commentators. Table games and slots have so far accounted for the lion’s share of New Jersey’s modest Internet gambling revenues since things got under way in November 2013. And if you can offer them, why wouldn’t  you?

Bigger news for Amaya, or for New Jersey?

This is a significant development for the PokerStars and FullTilt brands. A foot in the door to the regulated American market is always going to be a big deal, and their history in the US makes it more of a big deal. A little over four years ago both businesses were being raided and shut down by the FBI. Of course they are very different entities now: different management, different ownership, different licensing and regulation. But still…who would have written this script as doors were being kicked in at PokerStars’ offices?

Focusing on numbers alone it’s far less significant (for PokerStars and FullTilt). The two brands combined have around 95 million registered customers. The entire adult population on New Jersey is a little over 6.5 million and I suspect they’re not all about start playing online all of a sudden.

In 2014, it’s first full year of regulated Internet gambling, the New Jersey market generated $122 million in revenue. In the first 3 months of 2015, PokerStars and FullTilt generated about $320 million in revenue for Amaya.

New Jersey alone isn’t going to make a material difference to Amaya’s financial results.

Still, the news was very warmly received by investors – Amaya’s stock rose almost 20% following the announcement.

Live dealers in New Jersey?

Both PokerStars and FullTilt offer live dealer games (powered by Evolution Gaming) in addition to their core poker products.

But it’s unlikely the New Jersey residents joining PokerStars (US) will get to meet the likes of Jekatrina, Julija, Nellija or Olga. Not for some time anyway.