In a recent conversation with Steve Ruddock, Brian Mattingley, the outspoken CEO of 888 Holdings PLC., discussed extensively about 888’s future strategies in the regulated iGaming sector. He also clarified his view on the online gaming behemoth PokerStars, which is preparing to reenter the U.S market after a pause of three-and-a-half years.
Currently, Mattingley’s company is the sole iGaming operator with a presence in all three states where online poker is legal. The company provides the platform for WSOP.com in New Jersey and Nevada, and runs its own 888 branded rooms in Delaware and New Jersey.
AAPN launch in Nevada imminent
It was widely presumed that 888 would broaden its operations in Nevada as early as February when Nevada and Delaware signed an interstate compact permitting shared online poker liquidity across state borders.
In June, Nevada’s regulators gave the green light to a plan in which 888 would establish an online poker network in the Silver State. This network would bring together WSOP.com from Caesars Interactive, an 888 branded poker room, and a third room from Treasure Island, all on the same platform.
Mattingley told Steve in their conversation that the 888 poker site, based in Nevada, will launch as a part of the All American Poker Network either in the fourth quarter of 2014 or early 2015.
Mattingley also suggested that the AAPN in Nevada will function as the basis for the interstate agreement between Delaware and the Silver State.
Mattingley provides clarity regarding PokerStars statements
In the past several months, Mattingley has been cited giving two contrasting opinions on PokerStars entering the regulated landscape.
In an interview with Howard Stutz from the Las Vegas Review Journal in June, Mattingley seemed eager to compete with PokerStars, almost inviting the company’s re-entry into the U.S. market.
He stated:
We are in constant competition with PokerStars across Europe, who prove to be a tough competitor. However, their presence pushes us to work harder and also broadens the market. Personally, I prefer having a minor share in a large market than a major share in a small one.
Describing PokerStars as a “formidable competitor” could be the understatement of the year. PokerScout data indicates that PokerStars.com attracts almost 10 times the cash-game traffic of its closest rival, 888, and more than double the combined traffic of the second to sixth most popular rooms. It’s more accurate to call it insurmountable.
Regardless, Mattingley seemed ready to accept 888’s role as the opening act. That was until a statement was published in Global Gaming Business earlier this month that suggested otherwise:
Regulators should allow [PokerStars] to enter the market. However, due to their previous illegal activities of accepting bets, they should face a penalty. This penalty could entail a prohibition from operating for a certain period. A two-year ban seems reasonable.
When asked about his seemingly changed viewpoint, thought by some to be prompted by PokerStars’ imminent plans to establish a base in New Jersey, Mattingley asserted his stance had always been consistent. He highlighted that LVRJ only covered his readiness to compete with PokerStars and omitted his opinion that PokerStars should be subjected to a specified waiting period before re-entry.
He reiterated that PokerStars has an undue advantage, operating in a market most other operators abandoned in 2006. He further suggested that companies such as 888 and PartyPoker should be allowed a grace period to rebuild their brands.
Interestingly, in his GGB interview, Mattingley suggests that a “two years” bad actor penalty would be adequate. However, in discussions with Ruddock, he seems to moderate his position to “one year, 18 months, or two years.” Following this reasoning, PokerStars would have already completed its minimum penalty period in Nevada, where its regulated iGaming operation began nearly 16 months ago. It would also be close to fulfilling a similar exclusion period in New Jersey, which will mark its first anniversary in the industry this November, a mere eight weeks after the anticipated PokerStars launch.
Shared liquidity plans in New Jersey still pending
Mattingley didn’t provide many details concerning the player liquidity sharing between us.888poker.com and WSOP.com in New Jersey. While he suggested that they’re interested in exploring the idea, it seems it’s not currently a priority.
The process is either being stalled by the DGE or something else is happening.
This journalist believes that it would be in 888’s best interest not to fervently seek a compact with WSOP.com. Not only would this move catapult the AAPN to the top of New Jersey’s iPoker industry immediately, but it could also enable them to maintain a substantial market share when PokerStars inevitably dominates.
Ultimate Poker and Betfair have already experienced the challenges of the small NJ marketplace – it cannot support more than three independent operators. If PokerStars were to make a triumphant comeback, given the current landscape, one operator would need to exit the market. Most likely, it would be 888poker.
The advantages of a mutual network agreement between WSOP.com and 888 go beyond just liquidity. To stay competitive, 888 has frequently had to offer unprecedented discounts and cashback deals to its players as a desperate attempt to retain their interest. Although aggressive marketing is essential for any successful growth plan, a partnership with WSOP.com would eliminate the necessity for these costly strategies.
