In 2013, there was a flurry of action with the regulation of online poker (although it was almost two years after the 2011 U. S. Department of Justice decision allowing it). Nevada, New Jersey, and Delaware became the first three states to pass online gaming and/or poker regulations to offer online casino gaming to their citizens. Instead of many states following and creating their own online regulations, however, those states paused to see how those jurisdictions would do with the new industry.
Those states saw mixed results from the trio that had legalized the game and, as a result, they waited. Four long years later, another state has stepped up to join the triumvirate in the online gaming fraternity. After almost two years of debate, Pennsylvania (pending the signature of Governor Tom Wolf) will open an online gaming and poker industry, becoming the fourth state to do so. Although the celebration may be ongoing, the question remains: With Pennsylvania now in the mix, what’s next?
One thing many people would like to see is Pennsylvania join the compact that has been signed between Nevada, New Jersey, and Delaware. By getting the Keystone State into that compact, the player numbers would virtually double (Pennsylvania’s population is roughly 12.9 million; the three states who have previously passed online gaming have a total population of 12.85 million), expanding the revenues for everyone involved. With this said, Pennsylvania isn’t getting into online gaming and poker to share the money; with a budget shortfall of about $2 billion, Pennsylvania is wanting to see if it can perhaps go it alone rather than be the “big fish” in a partnership.
What about other states that were waiting for someone else to make the move? Here’s a list that might be following Pennsylvania with legislation in their respective legislative bodies.
NEW YORK
New York has been dabbling with the idea of passing online gaming and poker regulation for the past three years. In 2014 and 2015, however, it was more of a “test balloon” than a real drive at regulation. State Senator John Bonacic has been persistent in his work, actually getting a vote on legislation in 2016 before it was overwhelmed by the passage of daily fantasy sports (DFS) legislation. With Pennsylvania now in the game – and New Jersey showing strong online casino revenues – New York may be ready to pull the trigger in 2018.
MICHIGAN
There is a drive by a House representative in the Wolverine State to pass online poker legislation by Thanksgiving. State Representative Brandt Iden has H 4926 on the table, which would open the state for online poker and potentially full casino gaming. Iden’s dream may be just that, however, as he must corral the varying factions in the state that would want their piece of the action. Besides having a thriving casino gaming industry, tribal interests and their casinos would have to be placated. Michigan is roughly the same size as New Jersey, making a solo effort difficult as well.
ILLINOIS
Currently in their short session, the Illinois General Assembly is reviewing bills from its previous session for potential implementation. One of those bills is H 479, which was passed by the Senate by an overwhelming vote (42-10) and would regulate online gaming and poker and DFS for Illinois residents. The problem is this legislation isn’t currently being examined by the House and the governor, Republican Bruce Rauner, doesn’t want to expand gaming in the state. The Land of Lincoln is facing a $10 billion budget deficit, however, which would make any politician look under every rock for additional revenues.
CALIFORNIA
Ah, California…
For almost the past decade, California has been doing the tango with online poker. Much like Michigan, however, there have been different factions inside the state that have consistently thwarted the effort. Whether it is the powerful tribal casinos, the equally strong card rooms or the fighting-for-everything-they-can-get horse racing tracks, there hasn’t been a bill that every entity could get behind.
While those groups have been arguing amongst themselves, there is also another party that has been a thorn in the side. PokerStars, through their ownership and a partnership with some tribes in the state, has been in the mix. Their interests, however, is in preventing any “bad actor” language from being included in any legislation. On more than one occasion, legislation that everyone seemed to be in synch with was scuttled by a tribe that had issues with “bad actor” clauses (because they had a deal with PokerStars to provide software and, more importantly, provide a huge database of players).
They’ve been saying “wait until next year” for some time in the Golden State. And even after all the discussion, California doesn’t seem to be any closer than anyone else at passing online poker legislation.
SUMMARY
It’s anyone’s guess as to which state will fall next in the online gaming and poker dominoes game. A large state like California or New York would probably bring an influx of states passing legislation (compacting would be huge in this case), but these larger states can work on their own (and have little interest in compacting). Smaller states like Michigan, New Hampshire or even Illinois would be great for compacting, but there’s a great deal of work left to be done. The step by Pennsylvania in regulating online gaming and poker (and DFS) could be a watershed moment in the further development of an online gaming industry in the U. S.
