Next States To Legalize Online Poker

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Only online poker within the state’s borders would be legalized. A 10% tax on gross revenue from cash game fees and tournament rakes. Players would be required to provide their social security number and date of birth to determine both eligibility and tax information. From what I've read, all of New York, West Virginia, Kentucky, Illinois, Connecticut, and California have a real chance of legalizing online poker this year. Some are more likely than others. I think it's more important to figure if states will be allowed to combine player pools. The law specifies that officials must write regulations in 2020. So, next year is the earliest time that an online poker site could launch in the state. Still, there’s no denying that there are now five states with online poker. 20, 2019, Gov. Gretchen Whitmer signed legislation to legalize online poker in Michigan.

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Online poker advocates are hoping that the legalization of online poker in Pennsylvania will be a catalyst in other states, including Pennsylvania’s northern neighbor, New York.

New York is already on everyone’s shortlist of candidates to legalize online poker in 2018 and the Empire State’s odds of passing an online poker bill have likely improved now that Pennsylvania has joined Nevada, Delaware, and New Jersey as online gaming states.

Close but no cigar in 2016 and 2017

The New York legislature has taken a serious look at the legalization of online poker in each of the last two years. And unlike efforts in other states, the bills were anything but idle.

The New York Senate overwhelmingly passing online poker bills in 2016 and 2017.

Both efforts came up short, as the Assembly never voted on either bill, and the legislative clock ran out on the bills.

This time online poker won’t be starting from square one

The good news is, online poker legislation will already be close to the finish line when the New York legislature returns to Albany in January.

A new policy adopted by the New York legislature last year allows active bills to “carry-over” to the next year, provided it’s in the same legislative term.

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That means the bill that passed the Senate in 2017 will pick up where it left off; in the Assembly Codes Committee.

The gatekeeper in the Assembly on all things gaming is Assemblyman Gary Pretlow, and he told Online Poker Report in June, the new policy could lead to more legislative movement earlier in the session:

“Part of the reason nothing happens in the early part of the session is we have to get committees up and running again and start from scratch,” Pretlow said. “That will not be the case here. I hope to address the bill in February.”

Pretlow has been hot and cold when it comes to online poker, somehow managing to be the face and the heel on the issue over the years.

Pretlow reprised his role as a heel this week when he told Gambling Compliance’s Chris Krafcik that Pennsylvania would have zero impact on what happens in New York.

States To Legalize Online Poker

Next States To Legalize Online Poker

When asked what impact #PA#iGaming legalization will have on #NY#iPoker push, Rep. Pretlow, leader of push, flatly told me: 'None.'

— Chris Krafcik (@CKrafcik) October 30, 2017

Why 2018 could be different

Despite what Pretlow says (and based on the validity of his previous remarks it’s clear these comments should be taken with a grain of salt), two important developments in the US online poker market could help push New York lawmakers to take action and pass an online poker bill in 2018:

  1. The interstate online poker agreement between New Jersey, Nevada, and Delaware.
  2. The legalization of online poker in Pennsylvania.

On October 13, New Jersey announced it would be joining the Multi-State Internet Gaming Association (MSIGA) created by Nevada and Delaware. When the three states pool their online poker players, traffic will increase by 40 percent.

Two weeks later, on October 26, the Pennsylvania legislature legalized online poker as part of a comprehensive gaming reform bill it passed. Governor Tom Wolf signed the bill into law on Monday.

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When Pennsylvania’s legal online poker sites go live the number of US residents with access to legal online poker will instantly double to 25 million.

That means that rather than joining an online poker market of around 12 million players country-wide, New York could join an online poker market of over 25 million. Further, it’s very likely that all of those states will be part of the Multi-State Internet Gaming Association, and sharing their player pools.

With New York, the five states would be drawing from a player pool of 45 million. That’s a number larger than the Golden Goose that is California, and yes Assemblyman Pretlow, that should have some impact on New York’s online poker efforts.

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