In the world of casinos and gambling, more and more people are starting to place their wagers online. In fact, every fourth dollar spent on gambling currently comes from online betting. The online betting industry has grown to an astounding $50 billion worth globally and countries are struggling to catch up.
From sports betting to online poker, new casino and gambling webpages are appearing each day. Governments around the world are struggling to regulate the new, modern and fast-paced industry. With many countries around the world legalizing and regulating internet betting, new and progressive laws are being enacted by countries ranging from the United Kingdom to Malta.
Why online poker is growing in popularity
With the dawn of the digital age and the growth of the internet, the gambling sector has kept up the pace. Many money wagering portals have gone online, some providing services such as online poker. With much lower initial installation costs than at land-based casinos, online poker sites have proliferated across the globe.
Brick and mortar casinos often find it hard to turn in significant revenue from poker. The venues collect a fee, known as a rake, from every pot in the tournament. But setting up poker rooms is both pricey and has a heavy opportunity cost. With poker accounting for just 1% of casino revenue, many venues are reluctant to invest in the game.
Listed below are some reasons why online poker sites are starting to hold the upper hand:
Small buy-in and low stakes
A faster-paced game
Less intimidating for novices
Can play at more than one table simultaneously
Online poker players can enjoy the game from their home
No need to drive to an official venue or a casino
Smaller or even absent rake
Great way to gain poker experience
Free poker matches available
While official land-based casinos are busy replacing poker rooms with slots and other activities, customers are beginning to flood the poker sites in their search for fun and enjoyment. People often prefer to wager real money online due to the lower buy-in and the significantly faster pace of the game. Those who play online poker well can later make their way to official tournaments and poker challenges.
How are online poker sites different from live poker tournaments?
The first major difference is whether legal online poker is permitted in the state or country. With many governments passing legislation trying to contain the growth of the online gambling market, poker sites and their providers have taken several hits. While regulated online poker is what the gaming community strives for, the United States government has passed legislation against poker sites.
The second major difference is the trustworthiness of games played. Issues such as player collusion or card rigging are common on the internet. And although the top rated online casinos strive for honesty and transparency, players have reported anomalies with online poker sites. The world of online gaming can be split into officially licensed and trustworthy portals and their malicious counterparts.
However, with the buy-ins and stakes in the game sometimes being as low as a few cents, poker players are attracted to playing the game on the internet. Not every person has a casino nearby or a gambling venue, but almost everybody nowadays is connected to the web. Provided a bettor has a functioning computer and an internet connection, they can play a few games of poker from their couch.
Many people are choosing internet play
Individuals across the world find it easier to play a game of poker from their computer rather than visit a specialized establishment. With fast internet connections and robust computers becoming more and more available across the world, the online poker and gambling sector is set only to grow in the future. Now it is time for the governments to keep up with the digital age and accommodate the changes in the technological landscape.
The legal climate surrounding online poker in the United States
The Federal Wire Act
This was a major piece of legislation passed by the US government against gambling and money wagering in the country. The Wire Act, enacted in 1961, prohibited betting done over telephone wires in the country. Its aim was to curtail money wagering across state lines and combat crime in the nation. Although outdated, judges ruled that the Wire Act also applied to internet betting and online poker.
Even though there have been officials stating that the Wire Act applies only to internet sports betting and not other forms of gambling, it nevertheless remains a major piece of legislation hampering the growth and availability of online poker sites in the United States. In order to access online gambling portals, communication is usually performed over the wires.
Although an ancient piece of legislation, several presidential administrations in the country stated that the Wire Act remains applicable in the modern world of online gambling. Although the language of the bill describes sports betting, the Wire Act has been used by the establishment to combat both online poker sites and other forms of internet gambling.
Further, the Wire Act explicitly states that persons deemed guilty of transmitting betting-related communication over the wires are liable to 2 years in prison and a fine. This bill has greatly limited the ability of Americans to participate in online gambling and hampered the growth of the US online poker industry.
Unlawful Internet Gambling Enforcement Act
The UIGEA is another piece of restrictive American legislation that was passed in 2006 by Congress. The bill bans American financial institutions from processing online gambling transactions for offshore gaming portals. The passage of the bill has greatly hit the American betting market and drove many poker sites underground.
The difficulty and legality of making cash transactions to and fro offshore online gambling portals have led to many betting sites being inaccessible to US players. It is a major piece of legislation set with a clear goal to regulate online gambling in the country. Further, the bill has clearly defined an area of unlawful betting and increased the power of the United States government to restrain the industry.
Further, the passage of the UIGEA bill has made it against the law to set-up and operate online gambling services from American territory. This includes poker sites, internet casinos, and online sports betting portals. Operating an online poker room or a casino could lead to criminal charges being brought against their executive by the American government.
Federal versus state laws
In America, there are certain distinct laws set by each state. At the same time, the nation as a whole is governed by state laws. While the UIGEA and the Wire Act are Federal laws, the Department of Justice has made certain allowances for individual states. Thus individual jurisdictions began allowing certain forms of online gambling in their territories.
And while many US states are yet to legalize the online poker market and other forms of internet gaming, progress has been made in this direction. Delaware was the first state to make online poker legal in 2012. This was followed a year later by Nevada and New Jersey, which moved to legalize online poker in their jurisdictions. Later, in 2017, Pennsylvania making playing poker online legal.
And while many countries around the world have softened their legislation of internet gaming, the market still is somewhat out of reach for the US player. Even though more than 4 US states so far have made playing poker on the internet legal, bettors are still heavily restricted on the choice of websites that they can join.
Will online poker become legal in US?
The current situation regarding online poker
While there has been a push to legalize online poker, it is currently completely legal in only four US states. Although poker in the US is a highly popular card game, there are significant legal obstacles to legalized online poker. Federal laws such as the Wire Act of 1961 and the UIGEA severely hamper the development and growth of legalized online poker in the US.
There is currently significant resistance from the authorities towards online poker operators and many players are restricted in the choice of gambling options presented to them. America traditionally held a conservative stance towards gambling, with the vast majority of states outlawing the activity. For a long time in history, the only place to wager cash on games was the infamous Las Vegas.
The option to legalize and regulate online poker could do wonders in both bringing the industry out of the shadows and providing American players with a great selection of internet poker matches to partake in. But currently, this choice has not been considered at the Federal level.
States such as New Jersey Nevada have made it legal to play poker on the internet, while many other US states are opposed to the idea. The American market could bring in large player pools to the online gaming portals, should the gambling laws on online casinos be softened. Thus the poker network currently restricts US players from accessing the wide plethora of poker sites that are available to other bettors from around the world.
Why legalization is likely to follow
Many nations across the world are considering legalizing and regulating the internet gambling industry. This will permit bettors to engage in games and the governments to receive taxable income. And although nations can be split into those that oppose the proposals and those that support them, the tide is towards permitting rather than banning activities such as poker.
While the US initially opposed legalizing online betting and had extremely harsh gambling laws when compared to Europe, things are slowly changing today. The repeal of the PASPA bill by New Jersey’s appeal and the slow but starting process of states allowing online poker to be hosted on their territories. This could be the start of a major change in the laws regulating internet poker in America.
States where poker sites are legal and regulated
In more than four US states can poker players enjoy the world of regulated online poker. While New Jersey and Pennsylvania have made a giant step forward to legalize online poker, other states are yet to follow. Nevada New Jersey has completely removed as much red tape from the world of online poker as possible, with the first state being the traditional gaming hub of the country.
Although online poker West Virginia has passed the necessary steps towards legalization and regulation, no online gaming services have yet been provided to the population. Currently, in the three states which allow citizens to play poker legally, bettors are grouped together into player pools. States then share these player pools allowing for a greater selection of gambling activities in the poker network. Players are grouped into pools from the states of Delaware, Nevada, and New Jersey.
Below is a list of US states where online poker is both legal and regulated by the government.
Delaware
Nevada
New Jersey
West Virginia
Pennsylvania
The states of New Jersey Pennsylvania have made amazing steps forward, and PA has recently made internet poker legal and accessible. West Virginia has also recently allowed its five casinos to offer their players legal online poker services.
States where real money online poker could be permitted in the near future
Even though only a handful of jurisdictions permit their inhabitants from visiting an online poker site and gamble with their money, some additional states are considering legalizing online poker. They already have brick and mortar casinos established on their territories and have become accustomed to gambling. Having the online poker site business both regulated and legal should allow additional US players to join the game.
These states are the following:
New York
Ohio
Iowa
Illinois
Arizona
Colorado
Maryland
Massachusetts
The state of Michigan
Both West Virginia and Michigan have made great progress towards legalizing the US online poker industry. While West Virginia has made it legal in 2019, the state of Michigan gave recent permission to its citizens and launched online gambling within its jurisdiction on Friday, January 22nd, 2021. Further to add, West Virginia and Michigan both have a thriving casino industry located within their borders. Thus it is no surprise that the two states have moved in the direction of allowing wagering money online poker.
The governing body of the state, the Michigan Control Board, has said that it will permit playing online poker to its citizens. However, there are no services offered as of today. The state offers its citizens a variety of casino games, with some 26 establishments operating on its territory. It comes as no surprise that its legislature followed states such as New Jersey to provide online gambling and poker sites to its inhabitants.
Other possible US states to allow poker sites
Bettors that want to play poker online can be joyous to know that many other states could in the future legalize the game. While players in New Jersey receive the freedom to play real money poker online, the UK poker market could expand massively in the future. States such as California, Florida, and Washington could potentially permit their citizens to play poker online.
At the same time, additional 22 states could pass laws permitting access to an online poker site. These include New Hampshire, New Mexico, Oregon, Rhode Island, Maine, and many others. While the US poker industry has been severely hampered by state and federal laws, a wave of legalization could potentially take place in the future.
Just as it was with internet sports betting. Following the 2018 overturning of the restrictive PASPA by the state of New Jersey, the Federal government began allowing individual states to chose whether to allow sports betting or not. Players in New Jersey and other states quickly got permission to access online sports wagering sites. Followed by many other Americans.
Where restrictions are likely to stay
While legal online poker is slowly crawling up in America, it is unlikely that a federal law will be passed allowing it any time soon. There are 12 states in the country with a generally harsh attitude towards online poker sites and other forms of online gambling. Their conservative stance and anti-betting agenda make it impossible to provide legal online poker for the whole country.
States which take a generally harsh attitude towards poker and online casinos and are vehemently against legalization include:
Texas
Arkansas
Nebraska
South Carolina
Tenessee
Utah
Georgia
Idaho
Kentucky
Hawaii
Alaska
Alabama
It is worth noting that online casino and poker is met with derision by the inhabitants of these states. Many of them are located in the South, where conservative morals prevail. Even though the American poker network and the online casino industry are likely to grow in the future, players from the above mentioned states are unlikely to enter the world of legal online gambling anytime soon.
Is online poker legal in Texas?
The state has harsh anti-gambling laws
The legal system in the state has some of the harshest laws regarding gambling in the whole Western world. Home to the infamous Texas Hold’Em poker game, the country nevertheless prohibits both casinos and sports betting. The climate in the state has traditionally been conservative towards vices. These include activities such as gambling, prostitution, alcohol, narcotics, and others.
Even though all forms of gambling are banned in Texas, there are a couple of Native American reserves where casinos have been permitted. Playing a live poker game in the country could warrant a $500 fine on the players. And while the attitude across the US has begun shifting towards legalizing gambling, Texas will be the last state to change its position.
Yes, provided on offshore websites that have been permitted in America
Even though the state has extremely tough legislation regarding casinos and betting, some allowances have been made towards online poker. While it remains illegal to operate a poker room, nevertheless US players from this state can try their luck on the internet.
To access a real money online poker site from the American territory can be a daunting task. A lot of web gambling portals are blocked and many providers simply do not service the US online poker market for security and legal reasons. Thus US players often take time to find a good webpage to deposit money with.
In the state of Texas, the home of Texas Hold’em poker game, it is not illegal to play online poker. Provided the player is accessing online poker operators that are housed offshore and are available in America. Thus Texans can enjoy their time gaming online poker in the state. Even though Texas has traditionally had a strict stance towards vice, thus banning its inhabitants from playing many of the online casino games available in the country.
A citizen of Texas must not make an income from online poker
While it is permitted to enter certain sites offering poker and online gambling from the state, it must be done quietly and in person. Just how it is against the law to operate a poker room, it is also illegal to derive income from online betting. Thus to charge other players money for it. At the same time winning in a game or a tournament is allowed.
The poker network around the world has sites that specifically tailor to the Texan crowd. They offer services such as legal online poker and other forms of online gambling to the state’s inhabitants. If a player wins, they can keep the profits. But it is against the law to operate an online poker room and derive an income from it. US poker players thus may enjoy their web gaming time in the state.
Can I get in trouble for playing online poker?
Playing real money poker online is unlikely to lead to trouble
Although the laws across states vary greatly, with many having prohibitions against legal online poker, in the United States the laws are often unenforced. Thus although there can be many restrictions coming from different authorities on state and federal level, individual bettors usually remain in the green zone.
Certain states, such as Texas, prohibit the opening up and running of poker rooms. They can impose fines on those who play the game. However online poker is different. Although many sites and webpages are not accessible in the US, players rarely get in trouble. However, when playing from an offshore website, the banks may refuse to process the withdrawal of winnings due to the federal regulations as the UIGEA.
A lot of betting services do not accept US players
Many gambling websites and online poker portals simply will not accept deposits from Americans. This will prevent them from getting into trouble with the US authorities. There have been instances of online casino executives being arrested upon travelling to America. While a poker site may be available globally, depositing money with it may be inaccessible to Americans.
While states such as New Jersey and Pennsylvania have moved to legalize and regulate poker from within, hosting services with people playing online can still lead to issues due to the federal UIGEA legislation. Even though the global poker industry has grown over time, laws have been slow to change in America. Portals such as the Full Tilt Poker, located in Ireland, simply do not accept US citizens.
Running a poker site can lead to jail
Internet poker is considered less dangerous by the authorities than other forms of gambling, such as casino games or betting on sports. However, setting up and operating a poker site in America can quickly lead to jail time. Bettors usually play on offshore portals that allow Americans to join. However, it will take time before the entire country legalizes online poker. However, the UIGEA restrictive act does not apply to players! Instead, it punishes the online poker websites and their executives.
Black Friday on the poker news
Players reading the poker news from around the world were quickly stunned by the Black Friday event. It took place on April 15, 2011 , where a criminal case was made against the owners of the three largest online poker operators at the time. On Black Friday, their companies were accused of violating federal law and money laundering. The main legislation that allowed this event to take place was the UIGEA.
The three poker operators quickly shut down their services in the country and moved offshore, according to poker news. These include Pokerstars Full Tilt and Cereus. The PokerStars Full Tilt executives were accused of violating several laws by the government.
Still in the grey zone.
While players can be lured into the world of online poker by promises of cash prizes and possible winnings, the world of real money online poker still remains in the legal grey zone. With different state laws against the country and restrictive federal laws, the US online poker player base remains subdued for now.
Even though the Department of Justice has issued some remarks leaving room open for individual states to make their own laws. And while states such as New Jersey began offering legal online poker games to their citizens, not everybody has followed suit just yet.
World Series of Poker as a legal outlet
There are certain outlets available, such as the World Series of Poker playroom. It is the largest online global poker venue legally available to American bettors. With the provision of large cash prizes, players can enjoy their time with real money poker at this outlet.
Further, Global Poker service is also permitted in America. Here the portal uses the sweeps coins promotion and a dual-currency system thus making it accessible to US players. Although Americans cannot play real money poker on every site, the world of US online poker is likely to grow in the future.
Companies such as Global Poker offer cash prizes to their clients disguised as sweeps coins promotions. This allows many American players to partake in the gaming activities on the site. And although Global Poker does not offer as many cash prizes or games as the World Series, it nevertheless has a valid and open webpage.
Concluding remarks
Even though America has rather restrictive laws regarding real money poker, the pivotal stance of states such as New Jersey is helping the situation improve. While the law bans companies such as Pokerstars Full Tilt poker and many other famous brands, online poker is beginning to gain traction in the country. Already online poker in West Virginia has become permitted, and many other states are to follow suit.
Players from America are anxious to hear the positive news of online poker becoming available in their state. And while the progress has been slow, national attitudes are slowly changing. Legislations as the Wire Act and the UIGEA are likely to be repealed in the future. With the growth of the internet poker industry, a wave of legalization may soon follow.