For the first time since 2013, the drive for online gaming and poker regulation finished on a high note. Outside of when the “Original Three” – Delaware, Nevada, and New Jersey – passed their regulations regarding online gaming and/or poker (Nevada still holds to online poker only), there has been little reason to cheer when it came to further regulation. At the close of 2017, however, online gaming and poker regulation is at its apex.
With the passage of regulations in the state of Pennsylvania, there are now four states that have set in place taxation and regulatory plans for an intra-state industry. Along with that, the “Original Three” finally came to the realization that there were more revenues in compacting – sharing players across the platforms – than there was in going it alone (on the down side, there was only one operator, 888 Holdings, who was licensed in all three areas). All this action has people viewing the future of online gaming and poker in a positive light.
The coming year is a pivotal one for online gaming and poker. With the Keystone State getting in the game at the end of 2017, there are thoughts the tide is turning towards online gaming and/or poker regulation in many other states. Michigan, Illinois, New York, New Hampshire, Connecticut, Rhode Island, and Maryland have all considered passing some sort of regulatory guidelines at one point or another, and there’s the usual dance that the state of California does with online poker. Although California is the BIG prize to be had (its 37 million citizens would be a powerful impetus to federal legislators to move on online gaming and/or poker legislation), actions in Pennsylvania will be highly indicative of what the future contains.
If PA can get online quickly, get compacted with the other three states AND be able to show how a well-populated poker industry in the U. S. would go, then the other states listed above will be more willing to jump in and, perhaps, others will be more likely to consider such legislation. If, however, there are any holdups or delays in the implementation of the regulations in Pennsylvania, not only would it influence the Pennsylvania budget (which has written in the original licensing revenues for this fiscal year), but it would also give the industry a black mark when other states look at online gaming and poker.
There is also something else that is under consideration as we speak that COULD impact the future of online gaming and poker.
In December, the U. S. Supreme Court heard arguments regarding the future of sports betting in the U. S. In the case Christie vs. NCAA, the SCOTUS is attempting to decide whether the Professional and Amateur Sports Protection Act of 1992 (PASPA) is unconstitutional or not. The law was written to prohibit any state that wasn’t already accepting wagering on sports from doing so in the future. New Jersey, looking for another form of revenue to supplement the casino industry, passed regulations in 2012 that challenged that law, with lower courts siding with the NCAA, the National Football League, the National Basketball League, the National Hockey League, and Major League Baseball in that the law was constitutional.
The arguments before Christmas were hotly contested before the nine Justices and many believe that, when the decision comes down this summer, they will side with New Jersey under the idea that gaming is the domain of the individual states rather than the federal government. This would have a significant impact on many decisions in the States of America, but it would open another avenue of online gaming opportunity, much like daily fantasy sports (DFS) did. But to think that the SCOTUS opening the game for sports betting is going to be a free pass for online gaming and poker is a bit short-sighted.
Many people have thought that the SCOTUS decision on sports betting will be the thing that opens the floodgates for passing online gaming and sports legislation, but I don’t see that. People – and I’m putting politicians in that category – can rationalize sports betting and putting it online for people, much like in the manner they justified passing regulations for DFS without bringing online casino gaming and poker along with it. As such, it doesn’t necessarily mean that legislators will go “all the way” to online gaming and/or poker, however, if they were to pass any sports betting laws.
As stated previously, the burgeoning online gaming and poker industry is at a precipice at the start of 2018. Never has it had the momentum that it has right now, but it also has just as many obstacles if not more than it had in 2017. Only through the diligence of those who are actively pursuing passage of regulation of the industry can more states join the party and MAYBE push regulation of the industry over the top.
