When will PokerStars’ Pennsylvania monopoly end? It’s a question PA poker players have been wondering about for some time.
Once other online poker sites finally emerge to compete with PokerStars in Pennsylvania, those same players will have other questions, too.
When will PA online poker players get to play against players in other US states with legal and regulated sites? And what will that new online poker landscape look like?
BetMGM Poker, WSOP soon taking seats at PA online poker table
More than six months ago came whispers that one and perhaps two new online poker sites would soon launch in PA. Those whispers became slightly louder in the fall when the Pennsylvania Gaming Control Board (PGCB) began approving licenses that would pave the way for the new sites.
In late October, the PGCB approved BetMGM for licensure as iGaming operators. Entain, formerly GVC Holdings, owns the partypoker platform. Along with MGM, Entain jointly owns BetMGM (formerly ROAR Digital). BetMGM operates the partypoker US network that is presently up and running in New Jersey.
In December, BetMGM launched an online casino and an online sportsbook in Pennsylvania. Expectations are that a BetMGM Poker site could launch in Pennsylvania soon as well.
It was back in October the PGCB approved an interactive gaming manufacturer license for 888 Holdings, the online poker partner of Caesars who own the WSOP.
Soon after players in PA began receiving emails intimating WSOP.com PA was coming soon. However, a Caesars representative made clear that wouldn’t happen until 2021. A January announcement of the 2021 WSOP Online Circuit Series hinted that WSOP.com could be launching soon “in a newly regulated market,” with Pennsylvania seeming a likely candidate.
But still PA players wait.
What needs to happen for PA to join a multi-state agreement?
That WSOP Online Circuit Series takes advantage of WSOP’s ability to share player pools in multiple states. Players on both WSOP Nevada and WSOP New Jersey can play in WSOP-branded events, including online bracelet events.
In addition, the WSOP/888 network pools players from three states, NY, NJ, and Delaware. Currently no other U.S. online poker sites have been able to follow suit and join player pools.
PokerStars (for example), has sites in New Jersey, Pennsylvania, and now Michigan (since late January). But in each case the sites are “ring-fenced” meaning players can only compete against others within the same state.
In order for Pennsylvania players to be able to play against those in other states, two things need to happen.
First, an online poker site must launch in PA that also operates a site in another state with which it could form a network. So far PokerStars is the only candidate with its NJ and MI sites.
Second, the PGCB will have to approve entering a multi-state internet gaming agreement with other states in order to permit sites in multiple states to combine player pools.
Favorable Wire Act ruling should lessen PA regulators’ concerns
Most observers believe Pennsylvania had been previously hesitant to pursue joining such an agreement thanks to a revised Department of Justice‘s Office of Legal Counsel opinion regarding the Wire Act.
In January 2019, the DOJ office issued an opinion dated a couple of months before stating that the Wire Act did not just apply to sports betting, but to all forms of gambling (including online) conducted across state lines. That position reversed an earlier DOJ opinion from 2011 that the Wire Act applied to sports betting only.
In response, the PGCB issued a letter to online gaming licensees in the state recommending strongly that they comply with the new opinion and be particularly diligent about disallowing any wagering to occur across state lines.
The PGCB’s stance didn’t necessarily preclude the possibility of joining a multi-state agreement for online poker. However, it was clear the new DOJ opinion had halted any momentum in that direction. The PGCB would not be pursuing the idea, at least not in the near term.
Meanwhile the New Hampshire Lottery filed a lawsuit against the DOJ objecting to the new opinion. In June 2020, NH received a favorable ruling, thereby vacating the new DOJ opinion. The DOJ appealed, and in January 2021 that appeal was denied by the First Circuit Court of Appeals.
The January ruling should be regarded as good news for Pennsylvania poker players. The PGCB has not indicated its plans going forward. However, the Wire Act and the DOJ should no longer present an obstacle should PA regulators choose to enter into a multi-state agreement.
Multiple sites…and multiple networks for PA?
Among the states with whom Pennsylvania could begin sharing player pools, New Jersey would be a likely first candidate. Michigan could come later, perhaps by the end of the year or early 2022.
Delaware, a much smaller state, would be less of a priority. Meanwhile West Virginia has also legalized online poker, although has yet to launch any sites.
Such combined player pools will obviously be a game-changer for US online poker generally and Pennsylvania poker in particular.
If and when PA does join a multi-state agreement, Pennsylvania may well have both BetMGM and WSOP.com sites up and running.
In other words, the near future could well see multiple online poker sites become available for PA players. Then a little farther down the road, PA players might even have multiple multi-state networks from which to choose as well.
Lead image via Dreamstime.com