Date: October 17, 2024, 07:31h.
Last update: October 17, 2024, 07:31h.
Pennsylvania is positioned to become part of the Multi-State Internet Gaming Agreement (MSiGA), allowing it to share its online poker liquidity with other states in the compact
Current members of MSiGA can merge player pools from different states, potentially allowing players in Pennsylvania to compete with opponents from Nevada, Delaware, Michigan, and New Jersey.
The Pennsylvania Gaming Control Board (PGCB) informed PlayPannsylvania on Friday that negotiations have begun to have the state join MSiGA following a request from Democratic Governor Josh Shapiro.
Importance of this Development
For online poker to thrive, it requires a substantial number of players. A larger player pool leads to bigger tournament prize pools, more game options, and higher stakes, attracting more players.
Initially, when states first legalized online gambling in 2013, the markets were isolated. This was done to restrict access to residents from states where online gambling was illegal and to simplify taxation.
However, this isolation was detrimental to online poker. For instance, Delaware, with a population of under 1 million, struggled to sustain a viable online poker ecosystem due to low liquidity. Online poker suffered as a result.
Introduction of MSiGA
In 2014, Delaware and Nevada were the inaugural members of MSiGA, with New Jersey joining shortly after. MSiGA sets minimum regulatory and technical standards for liquidity pooling.
The agreement also stipulates that operators must distribute rake based on each player’s contribution to the pot, allowing for tax redistribution based on the player’s location.
Pennsylvania legalized online poker in 2018 but hesitated to join MSiGA due to changing legal circumstances.
Recent Developments
In 2011, the Trump administration overturned the DOJ’s opinion that the federal Wire Act only applied to sports betting, throwing the legality of online gambling operations, including MSiGA, into question.
Following a successful lawsuit by the New Hampshire Lottery against the DOJ, the 2011 interpretation was reinstated, paving the way for Pennsylvania to join MSiGA, the largest state by population, with 13 million residents.
This move could potentially encourage other states to embrace online poker, leading to a more regulated and viable online poker market in the US.