U.S. Online Gambling Progress Carries Over into 2017

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As frustrating as last year ended up being to not cross the finish line in any state, there is progress carrying over from last year in Pennsylvania, New York and Michigan that could make 2017 the year that online poker expands to a key(stone) state and solidifies its state-by-state advancement in the United States.

The Pennsylvania legislature already is back in session and there remains $100 million in the state budget earmarked to come from gambling expansion. The governor has asked for that money. One of the legislative branches, the House, passed an online gaming bill in 2016.

There also is the matter of the local tax share for slot machine revenue that needs attention early in the session and the House tied the issue to online gaming by connecting the bills late last year.

There are members of the Senate supportive of online poker. Sen. Jay Costa has announced his plans to introduce legislation that would legalize internet gaming and daily fantasy sports, while re-enacting the local share provisions.

A negative heading into the session is that internet gaming lost its champion in the House in Rep. John Payne, who retired. However, in his role as chair of the Gaming Oversight Committee, Payne already did his part in crafting passable language. Now it’s up to the Senate to move or find another way to fund that $100 million. Payne’s House colleagues have shown they are willing to keep up the pressure.

Image courtesy of Poker Players Alliance

Poker Players Alliance Executive Director John Pappas expects to see a decision on Internet gaming’s future in Pennsylvania made between April and June, when the state will want to have its budget resolved. If it’s true what he believes, that there are the votes to pass Internet gaming in the Senate if the leadership allows for it, then the first half of the year could be monumental for online poker.

“Ultimately, the way around [the Senate leadership’s resistance] is going to be the Senate realizing that the few people within their body that don’t want to see it need to be overruled because the need for regulation is so apparent, not only from a consumer-protection standpoint but from the fact their state is drowning in deficit,” Pappas said. “That is not going away. Their budget issues are becoming even more dire.”

If Pennsylvania, the sixth-most populous state in the country, passes online poker, that will put pressure on New York to act.

New York cannot have full online gaming because the state constitution prohibits gambling except on state lotteries, horse racing and casinos. The NY Senate got around the prohibition by classifying internet poker as a game of skill.

Assemblyman Gary Pretlow, who introduced poker legislation in his branch, told PokerNews last year that the Assembly was not ready to do the same. Having two neighboring states — Pennsylvania and New Jersey — enter into online gaming is likely to get the Assembly members to figure out quickly that poker is a game of skill before their casinos get left behind.

The New York legislature will be meeting this month to work with the governor on the state budget. The first step for online poker is to get on that budget. If it’s in the governor’s budget and the Senate moves the bill again, the Assembly will have to take a serious look at the issue.

“New York is going to be interesting because Mr. Pretlow seems to have a different opinion about the issue depending on the day,” Pappas said. “So there’s still a lot of work to be done there and we’ve done outreach as an organization with our membership to encourage the governor to put iPoker revenue in the budget. We’re doing the same with Senate and Assembly leaders.”

There’s still a lot of work to be done there and we’ve done outreach as an …

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