As New York lawmakers debate authorizing online poker in the state, experiences and outcomes from next-door neighbor New Jersey provide some valuable lessons. Having established one of the most successful and regulated online gaming markets in the U.S., New Jersey’s journey will no doubt be important in helping frame the future of gaming in New York.
New Jersey’s Path to Online Gambling Regulation
In November 2013, New Jersey became the third state to permit the legal operation of Internet gaming (iGaming). After Black Friday in 2011, when major sites were closed, New Jersey took immediate advantage of the gap in the market by introducing the iGaming legislation, and launched legal online casinos, positioning itself as a haven for regulated online gambling.
Today, New Jersey is one of the few states allowing regulated iGaming websites, alongside Nevada, Delaware, Pennsylvania, Michigan, and West Virginia. New Jersey has been the most successful among these regarding registered player counts, gaming revenue, and tax revenue. This was possible by allowing their operators to share player liquidity across state borders via multi-state agreements, resulting in a larger player pool, increased prize pools, and overall engagement. This is a good model to follow for New York, which is still preparing its legislation.
Revenue Insights: What New Jersey Success Reveals
The online poker sector in New Jersey has been relatively stable in revenues as part of the larger success of its iGaming vertical. Some of the top operators currently fight for market share and the state benefited from the big jump of 27.8% in iGaming revenue. However, the poker segment pulled an average monthly revenue of $2,3 million during 2024, staying slightly behind from the corresponding period of the year prior.
While the online poker revenue may be modest compared to other casino games, it has remained steady over the years and has become a reliable contributor to the state’s overall gaming revenue.
For a state like New York that struggles with a budget deficit, the revenue potential of online poker is undeniable. By implementing a properly regulated model like in New Jersey, New York could enjoy the same kind of growth. New York’s potential iGaming market is estimated to generate $1 billion annually if poker and other forms of online gaming are legalized.
This is important since New York aims to close its budget gap during the next couple of years.
Regulatory Framework: Lessons for New York
Strong regulation was one of the main factors that drove the New Jersey online poker market to success. The DGE (Division of Gaming Enforcement) enforces strict standards for player protection, fraud prevention, and responsible gaming. Strong regulatory oversight reinforces trust with players, and building trust is important for the long-term sustainability of the market.
For New York, a similar structure will be important. Bill S9226 sets out a regulated market with up to ten licenses for operators, which would ensure the market is competitive but also somewhat controlled. Furthermore, New York Senator Joseph Addabbo has mentioned that shared liquidity agreements are a key tool for enhancing the player experience and increasing revenue more effectively. This has worked in New Jersey, and New York should follow suit for success in many areas of its new online poker market.
New Jersey’s Challenges: What to Avoid in New York
The online poker market in New Jersey has been great, but it didn’t come without its challenges. Market saturation was one major challenge. Competition among online operators in New Jersey is fierce, so it has been pretty hard for smaller operators to take any foothold, leading to market consolidation.
The fluctuating popularity of playing poker online is yet another factor to consider. Online poker revenue has grown in New Jersey, but overall, more significant gains in the iGaming sector have come from other casino games and sports betting. Online poker has been consistent, but it does not reach the explosive growth seen in other areas. In the case of New York, it is important to manage expectations and recognize that online poker alone may not drive massive revenue gains unless being included in a wider iGaming suite of products.
The Future of Online Gaming: Predictions for New York
If Bill S9226 passes, New York will join an elite group of states offering legal online poker. The state has a population of around 20 million, meaning it has the potential to rival many other states and be the single largest market for online poker in the country. The addition of New York to multi-state liquidity pools would be a game-changer; the effect will be exponential with active player numbers going through the roof with massive increases in the prize pools.
The success of mobile sports betting in New York shows that there is significant demand for online gaming options in the state. By expanding into online poker, casinos, and potentially other forms of iGaming, New York could unlock billions of dollars in revenue while providing a safe, regulated environment for players.
The future of iGaming in New York is indeed bright. Technological advancements like mobile gaming and even virtual reality poker could define the next generation of online gaming in the state. As the experience of New Jersey has shown, the ability to adapt and innovate will be the key to a resilient online poker market.
New York’s Potential as a Leading iGaming Market
New Jersey’s ten-year track record of success in the online poker industry gives New York a historical road map to follow under Bill S9226. By learning from New Jersey’s experiences, New York can position itself as a major player in the United States’ iGaming landscape. If the transition is done properly, New York can achieve massive financial gains while providing a safe and enjoyable gaming experience for its residents.