Bigger Is Better
PokerStars increases rake in North American markets. Online casino revenue eclipses land-based revenue in New Jersey. VGT suppliers are adding new routes.
The Bulletin Board
NEWS: PokerStars has increased its rake in North American markets.
BEYOND the HEADLINE: Online poker sites diverge on minimum cash game buy-in.
NEWS: Online gambling revenue surpasses land-based casino revenue in NJ.
VIEWS: VGT suppliers are making moves, which could be good news or bad news for online gambling legalization efforts.
AROUND the WATERCOOLER: Warriors, come out to play.
STRAY THOUGHTS: A nice round number.
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PokerStars Increase Its Rake in North American Markets
There is a longstanding poker meme that says, “More rake is better.” If you’re a North American poker player, that meme is now back in fashion after PokerStars increased the rake on its sites in New Jersey, Pennsylvania, Michigan, and Ontario — Pokerfuse.com has a full breakdown of the rake changes in each locale.
In a November 12 update on its website, PokerStars detailed the rake increase in North American markets:
“As of Nov. 12th 2024, PokerStars rake fees changed on ring games to be closer in line with the market in North America. These fees will help maintain our competitive features, such as the best rewards, the most trusted security and game integrity in the industry, and the best selection of games for poker players.”
The decision comes on the heels of increased competition in the US market:
GG Poker’s acquisition of WSOP and WSOP.com
Since it launched, BetRivers has been highlighting its low rake, undercutting one of PokerStars longstanding talking points, and possibly pushing the company’s decision to increase its rake (for the first time in North America) since it can no longer claim to be the lowest raked site.
Galfond explained the BetRivers Poker rake and rewards model in this X post, which reads in part:
“Shortly after launch, BetRivers Poker went from having one of the lowest rakes in Pennsylvania to something much more radical. We plan to keep none of it, giving our share of rake away in rakeback, rewards, incentives, freerolls, and more. We will aim to disrupt the way online poker is run in PA and, if successful, many more regulated jurisdictions.
“Much of that rake will be given back via our bonus store. Whether you prefer poker, casino or sports betting, you’ll have flexible redemption options. If you choose to redeem your points in casino or sportsbook instead of poker, you’ll benefit from significantly enhanced rates.”
Beyond the Headline: Ring Game Buy-Ins at US Poker Sites
Another interesting US poker news item from the folks over at Pokerfuse.com, who recently noted how US poker sites have taken different approaches to minimum buy-ins at ring game tables.
As Pokerfuse’s Anuj Ajora noted, WSOP.com has lowered its minimum buy-in from 40 to big blinds at its tables. The newest online poker site in the US market, BetRivers, is taking a different approach to minimum buy-ins:
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Online Eclipses Land-Based Revenue in New Jersey
The industry has been watching New Jersey’s revenue reports with keen interest of late, as online gambling revenue is increasingly becoming a larger part of the state’s revenue pie.
The success of New Jersey’s online casinos has rekindled the cannibalization demand shift debate, and the October revenue report is going to pour more fuel onto the fire, as for the first time (not counting the lockdown months during the pandemic), online revenue eclipsed land-based casino revenue.
Revenue from the state’s online casinos came in at $213.6 million in October (a 28.1% increase), while Atlantic City’s land-based casino properties tallied $208.7 million (an 8.5% decline).
Online casino revenue overtaking land-based casino revenue in the storied AC market is a gift-horse talking point for online gambling critics, as is the increasingly divergent growth trend between the two, seen in the chart below:
VGT Suppliers Are Expanding Routes
Continuing today’s theme of “Bigger Is Better,” two of the biggest VGT suppliers in Illinois are increasing their presence in and out of the state.
As previously reported in the newsletter, Accell Entertainment purchased the former Fairmount Park racetrack in September, with plans to reopen the property as a casino.
Accell is also increasing its presence in Louisiana. Per CDC Gaming Reports Rege Behe:
“Accel Entertainment Tuesday announced the purchase of 85% of the ownership interests in Toucan Gaming and LSM Gaming. The Louisiana-based route operators, owners of multiple licensed video poker establishments, were purchased for approximately $40 million.”
And Accell's rival, J&J Gaming, is doing the same in Nevada. Per CDC Gaming Reports Buck Wargo:
“Ten months after acquiring Golden Entertainment’s distributed gaming operations in Nevada, Illinois-based J&J Gaming is about to acquire 10 slot-only operations in northern Nevada, mostly along I-80. J&J, through its Golden Route Operations affiliate, is on tap to acquire Reno-based Leisure Gaming.”
Why does all this matter?
As I noted in a September newsletter entry, “The biggest hurdle to online casinos in Illinois is the entrenched VGT industry. VGT opposition may erode if one of the major operators is suddenly in line to be a master online casino license holder.”
That holds true for other states, too. Legalizing online casino gambling in VGT states likely hinges on the VGT industry’s attitude toward it.
Around the Watercooler
Social media conversations, rumors, and gossip.
Light & Wonder’s Howard Glaser is throwing down the gauntlet against the newly formed Social and Promotional Games Association (SPGA) trade group.
The Head of Government Affairs for L&W took to LinkedIn to question why “A trade association, formed with the stated purpose of “advocating for transparent…gaming experiences,” keeps its spokesperson, its leadership, and its members secret.”
Glaser went on to recount a recent exchange with an industry journalist who reached out for comment after an anonymous spokesperson for the SPGA mentioned Glaser and Light & Wonder in their criticism:
“They noted your criticism of sweepstakes gaming and referenced you by name (as well as Light & Wonder) so I wanted to reach out to see if you had any comment on this quote from them:
“One of the leading opponents of social sweeps is Howard Glaser of Light & Wonder. Why does Light & Wonder oppose social sweeps? Probably because they make nearly $800 million in annual revenue from their own social casino brands, brands that are threatened by the rise of social sweeps. That tells you everything you need to know about what products social sweeps actually compete with: traditional social casinos.”
Glaser said the journalist passed on the story, uncomfortable with “the ethics of being used by an anonymous spokesman launching personal attacks.”
Glaser concluded with:
“To me, the question is simple: Why are you hiding? What are you hiding?”
“If you believe in your product, come out of the shadows and into the light and join the conversation,” Glaser said. “Any takers?”
Stray Thoughts
I wasn’t sure if it would happen on Tuesday or Wednesday (it was Tuesday night), but the newsletter has officially hit 3,000 subscribers.
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