Poker In The Us Online
Play poker online, anytime, anywhere. Take our software tour and check out everything partypoker has to offer, including Missions, Achievements and exciting game formats like fastforward poker. Best of all, our mobile poker app allows you to take your game on the go, so whether you’re just building your bankroll or participating in a major series of tournaments, you’ll always have the. The best online poker sites for US players offer fast payouts, extensive gaming action, great bonuses, and a trustworthy experience. While options are somewhat limited compared with the rest of the world, there are still high-quality poker rooms offering action.
US gambling laws have undergone some revisions regarding how they are applied to online poker, changing the legal landscape in a positive way for poker fans.
Why Is Online Poker Illegal In The US?
Online poker, while widely popular and lucrative, resides in a complex legal maze that requires some finesse to navigate. In order to understand the nuances involved, it would help to have a good overview on US gambling laws. US based online poker was kept at bay for many years through the Federal Wire Act, which was interpreted to apply to any type of domestic online gambling entertainment. These circumstances gave rise to legally licensed offshore poker sites that accept US players. Revised interpretations regarding the application of the Federal Wire Act allows individual states the option of deciding whether or not they want to host regulated online poker, however very few have capitalized on this opportunity.
The heyday of online poker in the US was in the early 2000s when the technological advancements were paced far ahead of regulatory oversight. The US gambling market was ripe for investment, and numerous licensed offshore poker rooms set their sites on American poker players. This provided a large range of poker sites for US poker buffs to participate at. Things changed in 2006 when President George Bush signed the Unlawful Internet Gambling Enforcement Act (UIGEA).
The UIGEA bill prohibits financial institutions from progressing gambling related transactions via the Internet. This law forced many online poker providers to shut down their US-facing sites due to a blowup of USA friendly deposit methods. Some large companies like PokerStars, Full Tilt Poker and Absolute Poker continued to do business with American players as it took some time for the ramifications of the law to be implemented. In fact, the final regulations brought on by the UIGEA did not go into effect until late 2009. There were efforts to draft pro-poker legislation for some states, but not before the entire poker world was rocked on April 15, 2011.
On what would become known as Black Friday, the US Department of Justice issued indictments against financial institutions and online poker groups like PokerStars, Full Tilt Poker Absolute Poker. Charges included UIGEA violations, bank fraud, money laundering and illegal gambling. Bank accounts and domain names were seized as a result and the sites immediately stopped accepting US players. Each site continued to do business with other countries.
In the wake of Black Friday, the future of online poker seemed unclear. The DOJ issued a Formal Opinion that the Federal Wire Act only applied to sports betting, leaving the decision to host online casinos and poker up to each individual state. American players had online poker access through licensed offshore sites, but it was not until 2013 that the US saw US-based online poker emerge through Nevada, Delaware and New Jersey. Ultimate Poker and World Series Of Poker launched sites along with several other small companies. PokerStars made its US comeback in March 2016 through New Jersey and the state has been profiting off the regulated site ever since.
The UIGEA targets financial institutions, not individual players. While US-based online poker is illegal in most states, US players do have some legally sanctioned options available through legitimately licensed and regulated offshore destinations. It is likely that more states will push for regulated online poker, but it takes time for legislation to pass and be implemented. We anticipate more states will get on board with this type of gambling entertainment within the next few years.
Olympic gold medalist Michael Phelps, Brazilian soccer star Neymar and legendary Australian cricket player Shane Warne live-stream a game of online poker.
This heavy-weight match, of course, is a dream scenario. It comes from the mind of Seth Palansky, vice president of corporate communications for Caesars Interactive Entertainment. Palanksy primarily deals with the World Series of Poker‘s (WSOP) land-based operations. But with recent events, his duties have shifted online.
Online poker hasn’t gone anywhere. It, along with online casino games, have merely vaulted to the front of the gambling activity list.
Due to the coronavirus pandemic, all 465 commercial casinos in the US have temporarily closed. All sporting events have gone on hiatus. Spectators around the world have dug deep into the gambling pit and taken to betting on sports like table tennis and Australian rules football.
In a way, one could argue the chaos has reignited the online poker discussion. (Last year’s WSOP tournament and the success of Pennsylvania online casinos are examples of recent conversations with a pro-online poker overlap.) But if it continues to be talked about in a post-COVID-19 gaming world, it is an entirely different conversation.
Pushing the online poker discussion forward
The central question is not whether legislation can be passed, because four states have done it. Instead, it’s getting lawmakers up to speed on how online poker operates.
“It comes down to the familiarity of government officials with sports, more so than poker. Obviously, they are involved in their communities, and they have their sports teams, and so it’s much more top of mind,” Palansky said in an interview.
This is true. Generally speaking, most state lawmakers are more familiar with their hometown team than the complexities of poker.
Following the demise of the Professional and Amateur Sports Protection Act (PASPA), states salivated at the opportunity of bringing sports betting to their residents. However, in the ensuing commotion, online poker was left behind.
A seasoned executive in the gaming industry, Palansky said his constituents have tried to help push online poker legislation forward with a federal framework and continue to lobby at the state level.
But he also said the current state of gaming might also be a catalyst for further discussion.
“I think something like what we are going to be going through here, not in just the short-term, but this [pandemic] is going to have long-term ramifications on the economy. Government entities are going to be looking for funds to help solve some of the issues that are being created as a result of where we are today,” he said.
Multi-state player pools in online poker
“With sports betting grinding to a halt and, of course, 100% of commercial casinos closed in the US, it’s a shame the states can’t be getting some tax revenue during these extremely difficult times from online poker,” Palansky said in an email.
Currently, only four states are operating online poker:
- Delaware
- Nevada
The tax revenue generated is incremental compared to sports betting and general land-based casino revenue. It resembles more of a Band-Aid and is in no way keeping the gambling industry afloat. But it does, however, provide funds at a time where every nickel and dime is needed.
But according to Palansky, a critical hurdle preventing legislation from moving forward in other states is the understanding that online poker relies heavily on the ability to offer multi-state player pools.
Much like any gambler, players are interested in risking as little as possible to win as much as possible. However, according to Palansky, if you only allow players to compete against those in their state, you limit the prize pool up for grabs.
“The reason daily fantasy sports can offer those big prize pools is because they are offering them across multiple states. If they had to restrict to a single state, the prize pools wouldn’t be compelling enough to get people to play,” he said. “Same problem in poker. So, getting all players in the same pool allows the offering to be much more robust, which creates interest, creates demand and enhances the offering.”
Currently, DE, NV and NJ are locked in what is called the Multi-State Internet Gaming Agreement (MSIGA). This accord allows for players from the aforementioned states to compete against each other. Pennsylvania, unfortunately, only allows its players to compete against other players within its borders.
It can’t only be about the money
“The most important piece to understand for online poker is the reliance on liquidity to make it work. Meaning, right now, we are locked in a tri-state poker shared market where residents in NJ, DE, NV are all playing with each other. We are able to segregate by where the participant is from and ensuring the tax revenue goes back to that state on where the participant is.”
Some government officials hunt for revenue to balance state budgets. Others seek jobs to bring to their state. But there are a few lawmakers who look for both.
There is a painful trickle-down effect from the closure of all commercial casinos: No casino guests, no gambling dollars, no tax revenue and, most importantly, no jobs. Due to casino industry shutdowns, the American Gaming Association (AGA) estimates roughly 649,000 casino employees are out of work.
When it comes to online poker, Palanksy said one of the toughest questions to answer revolves around job creation.
“A lot of it seems to be dependant on jobs, how many jobs can be brought to the state,” he said. “Lawmakers like to have customer service located in their state, accounting, essential personnel, et cetera, et cetera. When running an online business, it’s hard to have 50 different staffing offices in 50 different jurisdictions.”
But regardless, Palanksy says “any online business that can generate tax revenue and jobs should be something all elected leaders should take a good look at to see if it works for their constituents.”
Proving it works
It’s a tough task to convince lawmakers anything. Try explaining geolocation to someone who doesn’t use a smartphone. But Palansky knows the power of a working product.
“What I think what we’ve done is we proved anything that needs to be addressed is being addressed inside these three states. Any other state looking to get involved, it would be very turn-key and very simple and very safe. The protections are in place, the regulatory framework is in place,” Palanksy said.
Online Poker In The Us Legal
“We made (online poker) meaningful in Nevada. Then replicated it in New Jersey. Then you work with (lawmakers) to show how the revenue base can grow with other states.”
Palansky said some states could argue they have enough liquidity to operate alone, but the reality is, almost all don’t (outside of California online poker, if it happened.)
“Poker is going to need the ability to be across state borders with the eventual hope of a worldwide pool that has significant revenue potential,” he said.
What’s on the horizon for online poker?
The latest state to legalize online gaming was Michigan, which is expected to debut sometime in 2021. In addition to legal Michigan sports betting, the bill also legalizes online casino games, DFS and poker apps in Michigan.
The Wolverine State’s plan to join the MSIGA is still up in the air.
“They are writing the bill, so we will see how that goes,” he said. “We think everyone should be able to run (online poker), but we understand states want to take a cautious approach. But we are willing to do what’s necessary to prove it works. But it’s frustrating to see how quickly sports betting came about.”
In recent months, the WSOP has seen player traffic increase by 54%. Whether that number continues to trend upward is unknown.
Online Poker Legality
“It’s hard to predict, but we are putting together new series with $4 million in guarantees in April,” Palansky said. “That shows we are bullish and willing to stick our neck out and anticipate (that) the demand will be there. But it’s hard to know, obviously this is a recreational activity, and we are cautiously optimistic that people will have more time on their hands and this is an activity to take your mind off things but also be successful and win some money.”
Online Poker For Money Usa
As the sporting industry grapples with ways to stay active, maybe a WSOP tournament featuring Phelps, Neymar and Warne isn’t such a bad idea. The NBA has recently gone the video game route and announced a player only NBA2K tournament.
Perhaps bringing together some of the most decorated athletes in the world to play poker isn’t such a bad idea.
“Knowing each of them a little bit, what’s great for poker is the personalities around the table,” Palanksy said.