Pennsylvania has, arguably, been one of the most proactive states in the United States regarding legal online gambling. The state’s iGaming market began gaining significant momentum after the legalization of online poker in Pennsylvania in 2017.
But one glaring opportunity has been left unfulfilled thus far: Allowing Pennsylvanians to engage in multi-state online poker agreements.
These agreements will allow players from various states to compete against each other, increase the number of available players and prize pools, and consequently make the games more appealing and lucrative for participants. It appears the Keystone State is poised to take the next step when it comes to online poker development. In fact, reports indicate state regulators are beginning to discuss the topic of multistate agreements.
The Current Landscape of Multi-State Online Poker
Multi-state online poker agreements have been a significant game-changer for states such as New Jersey, Nevada, and Delaware that signed multi-state agreements under MSIGA. In essence, multi-state online poker agreements involve allowing poker operators in different states to share player pools, a factor that increases liquidity and tends to create a more dynamic poker environment, including larger tournaments and more consistent action. Michigan joined in 2022, further enhancing the appeal of a shared player pool, which also benefits the broader online casino market.
Currently, Pennsylvania is not a part of any multi-state online poker agreements, meaning its player base consists of in-state players only. Despite the large population and strong interest in iGaming, Pennsylvania has a robust poker market. But without shared player pools, it lags behind those states where multi-state competition is allowed.
Pennsylvania’s Journey Toward Multi-State Poker
There are recent reports that Pennsylvania has begun preliminary discussions about the possibility of joining multi-state online poker agreements. Such agreements require cooperation among state regulators, operators, and interstate gaming authorities. It would be at the discretion of PGCB to work out what such inclusion into MSIGA would look like in the context of current regulations and infrastructure.
Though online poker was legalized in Pennsylvania in 2017, several regulatory obstacles had to be overcome before paving the way for multi-state play.
Potential Benefits of Joining Multi-State Agreements
If all goes well and Pennsylvania enters the multi-state poker agreement, the implications for its online poker market will be significant. Here are some of the main advantages that might result:
Larger Player Pools: By sharing players with the other states, online poker rooms in Pennsylvania would be able to offer a greater variety of games and stakes. This, in return, will attract more players and make finding a game at any given time easier.
Bigger Tournaments: With more players, the tournament sizes will be bigger, as will the prize pools. Professional poker players may be attracted to Pennsylvania, along with casual players seeking high-stakes competition.
Increased Revenue: The more players, the larger the tournaments, and therefore, higher revenues for poker operators, and consequently, the state. Pennsylvania has already secured substantial tax revenue from its online gambling industry; Joining a multi-state agreement could significantly boost its economic impact.
Enhanced Competitiveness: Pennsylvania would then be able to compete significantly in the U.S. online poker market with this membership and stand at par with states such as New Jersey, which is fast acquiring the reputation of being a multi-state online poker hub.
Challenges and Considerations
The payoff for joining the multi-state poker agreement is substantial, but several obstacles still remain. First, there’s making sure Pennsylvania’s regulatory framework aligns with other MSIGA states. In reality, that means crossing different tax structures, compliance regulations, and game integrity standards into state lines.
The PGCB will need to work with operators closely on integrating their platforms into the existing multi-state networks. Another issue at play is the potential resistance on the part of certain stakeholders, including local poker operators who would be afraid of a serious boost in the competition coming from out of state players.
Wrapping Up
Pennsylvania’s entry into multi-state online poker agreements might be the most exciting chapter in its online gambling evolution thus far. With the possible entry into MSIGA, the state poker market could unlock some robust growth opportunities: larger playing populations, boosted guaranteed tournament prize pools, and bigger revenue. Though many complications persist, the momentum toward interstate poker collaboration is unmistakable.
With Pennsylvania continuing to discuss both the benefits and logistics behind multi-state poker, the state is poised right at the very cusp of being a major player in the online poker landscape in the United States. If successful, it would reshape the online poker experience for Pennsylvanians and lock in its place as a leading player in the broader iGaming industry.