Thursday, November 14, 2024

Online Poker is Coming to Connecticut: DraftKings Electric Poker in Testing

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Online Poker is Coming to Connecticut: DraftKings Electric Poker in Testing
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DraftKings Electric Poker is in testing in Connecticut, pokerfuse can reveal.

Connecticut is one of eight states that have passed legislation making regulated real money online poker legal, doing so in 2021. However, there is currently no active, legal online poker in the state.

That could all change if DraftKings wins regulatory approval from the gaming division of the Connecticut Department of Consumer Protection (CDCP). If the current review of the operator’s peer-to-peer poker product is successful, DraftKings Electric Poker would be allowed to proceed to the next stage — a soft launch with real players taking part, the CDCP told pokerfuse.

Connecticut would then be poised to become the fifth US state where regulated real money online poker is currently available to players — joining, Michigan, Nevada, New Jersey, Pennsylvania.

Delaware doesn’t make the list because it is currently in the middle of a de facto blackout for legal online poker since Rush Street Interactive (RSI) took over as the Delaware Lottery’s exclusive igaming provider at the end of 2023.

Connecticut would be the second state with Electric Poker, following its launch in Michigan on August 20. Electric Poker functions as a three-handed, winner-takes-all jackpot sit and go tournament.

Earlier Review Conducted in Spring 2023

This is actually the second time that the CDCP has popped the hood of Electric Poker.

The regulator’s first review of the platform was conducted in the spring of 2023, but DraftKings asked for it to be halted after performance issues arose. That suggests the operator has been working to fix any stability issues with Electric Poker for more than a year.

Kaitlyn Krasselt, communications director for the CDCP, told pokerfuse Friday that DraftKings had “resubmitted Electric Poker to the CDCP for review in early August of this year.” She added that the agency “has begun internal testing of the product.”

When asked if there was a timeframe for a soft launch of the product, Krasselt said one would not be authorized until the agency’s “internal review is complete and all regulatory requirements have been satisfied.”

She added that a “soft launch of Electric Poker, if approved, would limit the number of simultaneous players so that the CDCP can assess electronic wagering platform performance, regulatory, and financial reporting requirements prior to permitting a full-scale launch.”

Boston-based DraftKings did not return a message seeking comment Friday.

DraftKings is Partnered With Foxwoods Resort

When Connecticut launched igaming in October 2021, DraftKings was one of three operators to join the market — where the state’s two tribal casinos and the state lottery hold a monopoly.

DraftKings formed a partnership with Foxwoods Resort, while FanDuel did the same with the Mohegan Sun casino. RSI partnered with the state lottery for sports betting — it was not authorized to offer online poker or casino games. (The lottery’s partnership with RSI ended last year, with Fanatics taking its place in December 2023).

Although peer-to-peer online poker is legal in Connecticut, the fact that the state’s two tribal casinos had decided to partner with two brands without an online poker platform had dimmed hopes there would be poker anytime soon.

iGaming Operators in Connecticut

Operator Verticals CT Partnership
DraftKings poker [1], casino, sports betting Foxwoods Resort
FanDuel casino, sports betting Mohegan Sun
Fanatics sports betting CT Lottery

Notes: [1] Poker still subject to regulatory approval.

As it turns out, DraftKings has been working behind the scenes for more than a year — in Connecticut at least — making preparations to roll out its own real money online poker product.

“DraftKings had previously submitted Electric Poker to the CDCP for review in the spring of 2023, but then requested that the CDCP cease our review in June 2023 due to performance issues that were identified at the time,” Krasselt said.

It’s not considered unusual for an operator to conduct years of testing on its platforms. However, the fact that DraftKings put Electric Poker through any form of review shows that it has been planning to launch an online poker product for some time.

DraftKings Will Have CT Market to Itself

Regulated real money online poker is legal in eight states. Excluding Michigan where Electric Poker is already live and Nevada, DraftKings has a clear path to launching the platform in four more states — Connecticut, New Jersey, Pennsylvania, and West Virginia.

Of those four, DraftKings appears to have the pole position in Connecticut, but considering that FanDuel is owned by Flutter Entertainment, which has several online poker platforms and several Spin & Go options, Connecticut online poker could grow past a single operator.

While Connecticut law does not allow for shared liquidity with other states, that should not matter with Electric Poker — as games are three-handed which reduces the challenges associated with a low liquidity pool. The state has a population of just 3.6 million.

DraftKings could launch Electric Poker in New Jersey, Pennsylvania, and West Virginia — and in the Canadian province of Ontario.

Electric Poker is boxed out from Delaware and Rhode Island because RSI and Bally’s hold igaming monopolies in those states, respectively — although lawmakers in Delaware have recently considered ending RSI’s monopoly for sports betting.

But even if Delaware allows RSI to maintain the status quo, online Poker in Delaware could once again become a reality as RSI is preparing the initial launch of BetRivers Poker in what will likely be Pennsylvania

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