What States Allow Online Poker
Online poker is legal in some states but not all. As of 2024, only six states have legalized the game: Nevada, Delaware, New Jersey, Pennsylvania, West Virginia, and Michigan. The legality of the online game varies from state to state due to factors such as state laws, gaming interests, and politics.
The primary legal statute in the US regarding online gambling is the Federal Wire Act of 1961. This Act prohibits the electronic transmission of information for sports betting. However, a ruling in 2002 ruled that it doesn't prohibit internet gambling on games of chance. For a short while, internet gambling options were abundant, leading to the creation of UIGEA.
The sole purpose of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) is to prevent gambling companies from partaking in "restricted transactions." This means they can't accept payments related to wagers using the internet if it would run afoul of any federal or state laws already existing. It doesn't ban any form of gambling, but it does ban payments made to unauthorized gambling sites. Licensed online poker sites, casinos, and sportsbooks in the US are exempt.
Another significant event in poker is "Black Friday", a landmark proceeding that significantly impacted the online gambling industry, particularly relating to online poker. The case revolved around the prosecution of the founders and executives of PokerStars, Full Tilt Poker, and Absolute Poker. The charges included bank fraud, money laundering, and violating the UIGEA.
Federal authorities took over the domain names, resulting in hundreds of thousands of players unable to play poker on a Friday night. It became known as "Black Friday" and sent shockwaves through the online poker community. The trial took place in 2011 and became a turning point in the country's regulation and legality of online gambling. As a result of the indictments, the three online poker companies suspended their operations in the US market. This led to the freezing of player funds and the collapse of the Full Tilt Poker platform.
Following "Black Friday," the online poker landscape in the US underwent several important changes. Some states began to explore the possibility of legalizing and regulating online poker. New Jersey, Nevada, and Delaware were among the first to develop intrastate online poker platforms allowing residents to play poker legally.
Online Poker in Michigan
Online poker is fully legal and regulated in Michigan. You can choose between several world-class online poker sites, including PokerStars, BetMGM, and WSOP. Efforts to legalize the online game began in 2016. Unfortunately, the bill was unsuccessful, but it did get the ball rolling. The Michigan Poker Bill was signed into law in December 2019; however, getting poker sites licensed took longer than expected, thanks to the country's focus on the COVID pandemic. PokerStars was the first site to legally operate in the state, launching on January 29, 2021.
New Jersey Online Poker
Five operational legal poker sites in the Garden State are licensed through three Atlantic City casinos (Borgata, Caesars, and Resorts World). Over the last couple of decades, online poker has been through a lot in the state. "Black Friday" saw the shutdown and restriction of US poker sites following the passing of UIGEA. In 2013, then-Governor Chris Christie signed A2578/S1565, allowing online gambling sites to open in the state through partnerships with Atlantic City land-based casinos. In November 2013, 14 casinos and poker sites opened their virtual doors.
Online Poker in Pennsylvania
PA players can play online poker using the PokerStars, BetMGM, Borgata, and WSOP platforms. This follows the legalization of online poker, online casinos, and other forms of gambling in 2017. On October 30, 2017, PA Governor Tom Wolf signed into law the bill that legalized online poker. The first site to go live was PokerStars PA, a couple of years later, in 2019.
Nevada Online Poker
Nevada was the first state to take a reactive approach to the events of the infamous Black Friday. Shortly after it took place, the Nevada Gaming Control Board drafted legislation regulating online poker in the state. Legally, things progressed quite slowly, and it wasn't until 2013 that Bill AB114 was passed, clearing the way for real money poker sites in the state. Lawmakers then looked at taking it one step further with multi-state online poker agreements, allowing operators to pool players, boosting traffic, and creating better liquidity.
Online Poker Delaware
Delaware was the first state in the nation to legalize online poker. The requisite legislation was passed in June 2012, and three Delaware poker sites operated for ten years but closed near the end of 2023. Rush Street Interactive, the parent company of BetRivers, is working on plans to launch an online poker platform in the state towards the end of 2024, although exact launch dates have yet to be provided.
Multi-State Online Poker
Multi-state online poker refers to regulated real money online poker platforms that connect their online poker rooms. For example, WSOP players in Nevada play alongside WSOP players in New Jersey and Michigan. This concept benefits the poker world because it means more players are in the overall player pool. This leads to bigger tournaments and more cash games, with operators offering bigger guarantees and spreading more game types around the clock. Participants include the three states already mentioned, with Delaware and West Virginia currently waiting in the wings.