Pala Interactive has no plans to take on PokerStars in New Jersey’s online poker market and will hold off on launching its own poker site, the company’s CEO says.
In an interview with CalvinAyre.com, Pala Interactive CEO Jim Ryan says the state’s poker sites are already having trouble attracting player liquidity and with PokerStars expected to come online in the state soon, the situation isn’t likely to get better.
PokerStars is currently being reviewed by state regulators for a license. The online giant was initially blocked for approval in the state because of its past difficulties with the U.S. Department of Justice, but since it has been sold to Amaya Gaming—already licensed in the state—PokerStars is expected to be approved by the New Jersey Division of Gaming Enforcement.
“We put that on hold because we do expect PokerStars to enter the market, not that we would have grabbed a significant share because there are two very credible poker networks operating in the state of New Jersey at this point in time,” he said. “Liquidity is obviously a challenge.”
Ryan said the company had planned to launch a poker site this year, but will now hold off.
Pala Interactive is partnered with Borgata Hotel Casino & Spa in Atlantic City to offer online gambling in the state. Borgata operates BorgataPoker.com and is also in partnership with Party Poker.
Borgata Poker and WSOP.com are the dominant poker sites in the state.
However, Pala has already launched a casino games and slots site. So far in New Jersey, slots and casino games have far outpaced online poker in revenue.
“The casino product, we actually think can take a meaningful share of that marketplace,” Ryan said.
As a more visible West Coast brand, many analysts feel Pala is waiting for California to approve online poker, rather than compete in an East Coast market.
Ryan said that while the company is planning to stay in New Jersey, much of its entry into the market was seen as a test of its ability to go through a regulatory process, operate its software and test its operations in anticipation of entering other markets like California.
