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The Regulatory Framework Of Online Poker Sites In The US: How Favorable Regulations Are Driving The Industry’s Growth

The United States online poker industry’s legal status is undoubtedly one of the most crucial yet confusing for online poker players. Are the online poker rooms in the US allowed to conduct their businesses legally within the nation’s territories, or does the law limit their activities? You will find all the answers you need in the next paragraphs.

While US citizens are huge fans of internet casino games, the federal government has some limitations to legislating playing poker games in the country. However, some states have enforced strict laws regulating online casinos within their territories.

While most states’ laws are against internet poker, they don’t directly affect the activities of the United States poker sites. Currently, Washington DC is the only state that expressly addresses online poker gambling as illegal and, as such — a crime.

What are the regulations for the United States online casino industry? Do gamblers in the US need to worry about anything while playing on US online casinos? Let’s discuss these questions in the following sections below.

What Is Online Poker?

Poker is a well-recognized card game and one of the most renowned around the globe. It’s a simplified game where players compete against each other for victory using card values. Wagering is done using chips that hold financial values. While playing poker, each player isn’t only mindful of the card within their possession but with other players, as that greatly determines if the player wins or loses.

The internet emerged to change the tides for casinos and poker rooms. Now, you can play poker over the internet. So, when a player plays poker using their laptop or smartphone and with an internet connection, it’s online poker.

Is Online Poker Regulated And Legal In The United States?

It’s legal to play poker in some states in the US and illegal in others. This is because legislation is carried out state-to-state, and most states still haven’t passed any laws to permit and regulate poker playing within their borders.

Moreover, The Wire Act — the federal law — forbids the interstate transfer of funds using state lines as state governments must carry it out only within their territories.

The internet poker industry is still young, yearning, and promising, and there are laws regarding the revenues, internet, and poker establishments. Before heading over, confirm if playing poker is legal in your state. Here are some laws regulating online poker within the US below:

  • The Wire Act
  • UIGEA
  • Black Friday
  • RAWA
  • The US Feds Reviewing the Online Poker Laws.

What States Have Favorable Laws For Online Poker?

These are the states setting the trail for legalizing online poker in the United States:

1. Nevada 

Nevada is the pioneer in legally adopting online poker, following its culture as America’s first state to commence gambling. In 2013, the state approved the law via the Nevada Gaming Commission (the regulatory body in charge of poker gambling in the state), although the commission began drafting regulations in December 2011.

The first organization to provide online poker for citizens in Nevada is Ultimate Gaming, and it did so by collaborating with Station Casinos in April 2013. By September 2013, another company, WSOP, also deployed its casino gaming services. A year later, South Point also joined the new market with its Real Gaming service, but the firm soon stopped activities due to a lack of enough clients and recognition. Interestingly, WSOP is the only internet poker company still in operation today.

2. New Jersey 

NJ holds the biggest market for online poker that is regulated in all of the US. Online poker commenced in the state as early as the end of 2013. There are currently seven legalized and regulated poker houses and four poker networks available for players within New Jersey.

3. Delaware

Delaware is the next state to join the new rave concerning online poker regulation. Legislatures in the state commenced plans to regulate and legalize online poker in June 2013. This brought about the establishment of the Delaware Lottery, which declared laws.

Online casino games commenced in October 2013, and online poker activities began in the state in the next month. Delaware’s three casinos — Dover Downs, Harrington Raceway, and Delaware Park, share one internet poker network operated by 888poker.

4. Pennsylvania

Pennsylvania commenced its online poker sites in November 2019, with the first internet platform being PokerStars PA. PokerStars is an independent gambling platform not associated with any player pool. 

Even though Governor Tom Wolf had already signed the online gaming bill into law in 2017, there’s been only one poker site in the entire state. Almost two months after launching, PokerStars towered over all online pokers in the state, grossing over $4.4 million.

5. West Virginia

West Virginia was the fifth state to regulate online poker games in the US. Legislators in the state provided the WVLIWA that enables players to gamble in casino-style gaming. Although the regulating watchdogs signed this law in March 2019, there are no internet poker rooms in the state, as the regulatory body is still under development.

6. Michigan 

Michigan was the sixth state in the US to legalize and regulate online poker. Although the state legislators had the opportunity to launch a state-regulated internet poker in 2018, that wasn’t followed through until 2019. It was possible when Michigan and West Virginia signed a gambling law for regulated internet poker.

The Future Of Regulated Online Casinos In The United States

Currently, only six states provide regulated and legal online poker services in the United States, but there is a huge possibility of that number increasing in the years to come.

By providing a convincing case for the legalization of internet poker, taxes for winnings and licensing fees can contribute greatly to a state’s economy. We’ve experienced a similar projection for sports gambling in the US.

However, even though the current numbers show massive growth in the regulated states, we can’t provide enough information about the realities and the numbers in other states, as poker gambling in each state requires individual state licensing.

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