Unfortunately, with the current operators in the market, we don’t believe anything will likely change in the US, so we know we need to step in and take an active leadership role in the market to help guide its future.
It’s no secret that GGPoker has long been interested in the US online poker market. Now, the global leading online poker network has re-affirmed its long-term interest in making this move — and hinted of “news on this front soon.“
In a recent exclusive interview with Poker Industry PRO, GGPoker Global Managing Director Sarne Lightman hinted that developments regarding the room’s entry into the US market are on the horizon.
“As you know, the US is the biggest poker market in the world, but due to the current legal landscape we are taking a long-term and careful approach,” Lightman told PRO. “While we are less obviously active in the US as we are in other markets, we are certainly working on it and you can expect us to share some news on this front soon.”
The interview shed light on GGPoker’s efforts to grow poker on a global scale. When questioned about his outlook for the US market in the next five years, Lightman expressed his concern that without notable alterations among the current operators, the industry landscape would likely remain stagnant.
He stressed the necessity for GGPoker to step forward and take an active role to disrupt the status quo and drive forward progress in the US online poker.
“Unfortunately, with the current operators in the market, we don’t believe anything will likely change in the US, so we know we need to step in and take an active leadership role in the market to help guide its future,” Lightman stated.
GGPoker’s Progress in the US
The Global Managing Director revealed that it has been actively engaging with regulators to grow poker and open up liquidity, extending its efforts to countries such as Italy, India, and Ontario, Canada’s largest province.
When asked about their efforts in the burgeoning US online poker market, the operator provided no details, but suggested that updates on this front would come soon.
GGPoker’s interest in the US market has been longstanding. Three years ago, its parent company, NSUS Labs, secured a manufacturer license in Pennsylvania, its very first authorization in the US. This license permits regulated entities in the state to use GGPoker’s platform.
Similarly, NSUS Labs is registered as a foreign corporation with Michigan authorities and has established a similar arrangement in New Jersey — both members of the multi-state online poker compact, which comprises five states including Nevada, Delaware and West Virginia.
When pokerfuse asked about GGPoker’s US initiatives last year, the operator expressed that it 'is actively exploring opportunities to make our great software and games available to American players.’
However, it does not hold an internet gaming operator license in any of these states. If GGPoker wishes to launch in the burgeoning US online poker market, it either needs to obtain an Interactive Gaming Operator license or form a local partnership.
GGPoker’s Path to Regulated Markets
The regulatory process to launch igaming in any US state is a painstaking process; an expedited route would involve partnering with an established licensed operator — a course of action that GGPoker is likely to pursue. It is unknown whether such efforts are underway.
When pokerfuse asked about GGPoker’s US initiatives last year, the operator expressed that it “is actively exploring opportunities to make our great software and games available to American players.” However, the operator refrained from disclosing specific details at that time.
Since its inception, primarily targeting the Asian markets from offshore, the online poker room and its network have made a remarkable transformation towards regulated markets. Indeed, within a short span, the operator has established itself as a prominent figure, surpassing PokerStars to claim the title of the world’s largest online poker room. Today, it boasts a cash game traffic volume surpassing that of all other dot-com operators combined.
It holds licenses in several European regulated markets, including Belgium, Germany, Netherlands, Romania, and the UK. In other jurisdictions such as Armenia, Estonia and Latvia, it has market access through local third parties.
But its entrance in Ontario two years ago marked a new chapter for the operator. It is its first toe-tip into the North American market and also its first-ever launch in a segregated market. Its launch in Ontario came through a partnership with WSOP, representing a further deepening of ties between the two.
GGPoker’s Potential Avenue in the US Market
Now, making a move to the US is a natural progression. The country is slowly but surely, opening up — there are now eight states that have legalized online poker, and five have signed the multi-state online poker compact. There’s another glaring issue: WSOP currently holds a contract with 888poker, set to last until 2026.
There are renewed efforts to grow PA poker through Pennsylvania joining MSIGA. Moreover, there is a growing anticipation that more states, including Illinois, Ohio and New York, could follow suit in the coming years.
The key question now revolves around the approach GGPoker will adopt to enter the regulated US online poker market. Partnering with WSOP may appear to be the most straightforward choice on paper. However, the situation is not entirely clear-cut.
When GGPoker ventured into the regulated Ontario online poker market, the branding was entirely under WSOP, operating under the domain WSOP.ca. However, the software and operational aspects were powered by GGPoker, including website management, marketing initiatives, promotions, affiliate programs, and cashier. However, a year later, the operator changed the registered domain from wsop.ca to ggpoker.ca. Moreover, the branding evolved from “WSOP Powered by GGPoker” to “WSOP @ GGPoker.” GGPoker cited the move as a means to “better align” the site with its global community.
This marked the first indication of GGPoker’s desire to assert control and its branding in the North American markets. But if GGPoker aims to operate in the US market, it must secure an Interactive Operator License, a process that may prove challenging due to its existing business operations elsewhere. Partnering with WSOP, as it did in Ontario, appears to be a pragmatic approach.
There’s another glaring issue: WSOP currently holds a contract with 888poker, set to last until 2026. This agreement sees 888 power WSOP’s operations in the US in Nevada, New Jersey, Pennsylvania, and Michigan for another two years.
The specifics of this partnership remain undisclosed, there may be grounds for its early termination. But the fact that the extension was inked after WSOP had already partnered with GGPoker and obtained its Pennsylvania manufacturer license suggests that WSOP either lacked interest or deemed it impractical to switch providers.
However the recent development of 888 selling its B2C operations in the US, while not directly impacting the partnership with WSOP, signals a decline in 888poker’s interest in the US market. This could consequently put a switch in providers back on the table.
