Friday, November 22, 2024

Pennsylvania Agrees to Multi-State Online Poker

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It is finally happening. Pennsylvania is taking its first steps toward signing the Multi-State Internet Gaming Agreement (MSIGA), which will allow its online poker operators to connect to their sister sites in other regulated gaming states.

The years of declining online poker revenue have been painful for poker players and operators alike, as the state ignored pleas to begin the liquidity process. The states’ lawmakers legalized online poker and other forms of igaming in 2017, and the first poker site launched in late 2019. But the state ignored the need for shared liquidity, even as Michigan and Rhode Island legalized and launched online poker, Michigan signed MSIGA, and sites like PokerStars and WSOP connected their Michigan sites across state lines. West Virginia even signed on to the multi-state agreement, though no poker sites have launched in that state yet.

Finally, after years of pleas from players and operators, even some lawmakers, Pennsylvania is ready to do it. Tangible steps show that Governor Josh Shapiro, numerous lawmakers, and the Pennsylvania Gaming Control Board (PGCB) are making it happen.

Step One: Governor Shapiro

For years, questions to the PGCB went unanswered regarding the intention of Pennsylvania to sign the Multi-State Internet Gaming Agreement. The few answers that did emerge seemed to indicate that PA Governor Josh Shapiro had been too busy with important issues and election year business. And then, this month, it was Shapiro himself that took the first step.

According to Play Pennsylvania, Governor Shapiro wrote a letter to the PGCB earlier in October regarding MSIGA. He asked the regulator to “begin the process of negotiating the Commonwealth’s entrance into the Multi-State Internet Gaming Agreement,” acknowledging that players would benefit and revenue would increase.

Step Two: PGCB

That request prompted Pennsylvania Gaming Control Board Executive Director Kevin O’Toole to put the topic of multi-state internet gaming on the docket for the October 23 public hearing.

Nearly two hours into the video, O’Toole took center stage and reported on the letter from Shapiro. O’Toole noted that the Pennsylvania Race Horse Development and Gaming Act authorizes the state to enter the multi-state agreement, though the governor must approve it, as he must sign MSIGA alongside the governors of all other states signed on to the agreement. Currently, the states in MSIGA are Nevada, New Jersey, Delaware, Michigan, and West Virginia.

O’Toole noted that Pennsylvania, as most other states, will only pursue liquidity for peer-to-peer online poker. When all of the other states provide their approval to welcome Pennsylvania into MSIGA, the onus will be back on Pennsylvania to move forward.

When O’Toole asked for a PGCB approval to start that process, they unanimously approved the motion.

Next Steps Uncertain

It appears that O’Toole will now reach out to the Multi-State Internet Gaming Association to indicate Pennsylvania’s desire to join. Most likely, there is a process to obtain the approval of the regulators and/or governors of MSIGA states. When those governors sign the new agreement that includes Pennsylvania, it will likely then go to Governor Shapiro for his signature.

The timeline of this process is not at all clear, but it should not be long, as all other states have done this before. While the November elections might disrupt the process, there is a possibility that all states sign the updated MSIGA before the end of this year.

After that, the PGCB will probably need to consult with other states as to the standard framework for the regulations for interstate online poker. Interested online poker operators may be able to indicate their desire to join their other sites with Pennsylvania, though that might not be a public process. Technically, seeing how companies like PokerStars expedited this connection process in Michigan, it is very realistic to say that Pennsylvania could have interstate online poker sometime in 2025.

This all remains to be seen. And considering there is no website or known singular proprietor of the Multi-State Internet Gaming Association, news will likely come from the PGCB when something happens.

MSIGA five states

Jennifer Newell is a freelance writer specializing in the poker industry. From the World Poker Tour to PokerStars, from reporter at the World Series of Poker to Editor in Chief at Legal US Poker Sites, she has written and edited for multiple sites and publications for 20 years. Telling stories about poker and its players is her passion, though her knowledge spans gambling legislation and the broader online gaming world. She has spent years advocating for diversity, most notably gender equity in the traditionally male-dominated poker sphere.

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