Nevada, Delaware Gaming Compact: What Does it Mean for Affiliates?

The Nevada, Delaware gaming compact is set to go into effect sometime in the next month and has the potential to breathe new life into the online poker industry in both states.

Besides offering a more competitive environment for players, the deal also offers new opportunities for operators and affiliates to make a toehold in the ever-expanding, regulated U.S. igaming market.

Here are a few things affiliates should know about the deal.

No one who watches the online gambling industry was particularly surprised when the Governor Brian Sandoval of Nevada and Delaware Governor Jack Markell announced the the deal last spring.

Interstate gambling compacts are something that have been part of the regulated internet gambling discussion from the very beginning due to the relatively small population of both states. (Nevada is the 35th least populated state with 2,790,136 residents; Delaware ranks 45th with just 925,749 residents.)

By joining forces, these two states are not only making their igaming markets more appealing to players, they’re also setting themselves up to play a bigger role in the industry when, and if, other states legalize igaming down the line.

By setting themselves up as an established entity, with a good-sized player pool, the two states should be very attractive to other states when, and if, they legalize igaming in the future. With New Jersey (population 9 million) setting itself up the, “Silicon Valley of American Internet Gambling,” combining forces is also a pretty good survival strategy.

As 888 CEO Bryan Mattingley recently told, “In New Jersey, the liquidity is sufficient to make the whole product entertaining and enjoyable, so there is no need at all to join (a compact).”

For affiliates, gaming compacts like this offer an additional selling point for converting American players who might be having doubts about how legitimate these two markets really are.

More competition also means more opportunities for players to find games they can actually compete in. After all, it seems safe to assume a smaller player pool is disproportionately packed with sharks.

Gambling affiliates who are new to the Delaware market will find that it doesn’t offer a lot options in terms of affiliate programs. 888 currently has a monopoly in that state and that probably won’t change anytime soon.

Interstate gambling compacts offer turnkey igaming markets for states that want igaming, but don’t want to be troubled with establishing new regulatory frameworks to support them. For that reason alone, the Nevada, Delaware pact could have a big impact in the American market for years to come.