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The legality of online poker in PA
Many poker fans keep asking the same question. Is online poker legal in Pennsylvania? The answer is yes. However, the road on the way to legalization was filled with years of negotiations and discussions. In other words, it was everything but easy.
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The Pennsylvania state senate passed a gambling expansion bill, HB 271, on October 26, 2017. A few days later, on October 30, 2017, the PA governor Tom Wolf signed the bill, which became the law.
The bill's signing was marked as a huge victory for all the gambling advocates that have been working for years under pressure and frustration. The entire process of passing the bill was not simple as it included discussions between the Senate and the Pennsylvania House. The Senate started debating the bill in the afternoon of October 25, and it passed the bill 109-72 the next day, October 26.
The bill went through many revisions before the Senate passed it. The fact that HB 271 has over 900 pages shows how complex it is. It legalizes PA online poker and slots, table games, online lottery, daily fantasy sports, VGTs at truck stops, the construction of satellite casinos, and sports betting.
The moment the state’s governor signed the bill, the Pennsylvania Gaming Control Board started accepting license applications from various online gaming providers and sites. The licenses for Internet gaming can be owned by existing casino license holders.
In the first 90 days when the licensing period started, initial applicants could apply for a collective online gaming license for $10 million. The collective license covered online poker, slots, and table games. Online casinos in PA that wish to run poker rooms must always team up with a brick-and-mortar property in the Keystone State. When sold separately, which is the option that started after 90 days, the permits for the categories cost $4 million each. In other words, those who didn’t apply for the license in the first 90 days lost the chance to get a significant $2 million discount. Every license is valid for a period of 5 years.
When it comes to gross gaming revenue from online poker and table games, it is set to be taxed at 14 %. There is an additional local tax of 2%. The tax on online slots is set at 54 %, which is much higher when compared with online poker and table games. The tax rate for the slots mirrors the one in land-based casino establishments. Even though many providers lobby for the tax reduction, such a thing may not happen any time soon.
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Even though many expected the online poker PA market to be in full operation within a year after legalization, the process took a lot more time. The delay was caused due to The Wire Act interpretation complexity. In mid-2019, PGCB notified online gambling license holders they would have to comply with the US Department of Justice's new interpretation of the Wire Act.
Pennsylvanian regulations previously allowed the providers to host their equipment and servers anywhere in the United States as long as the location met the authorities' criteria. The DOJ interpretation of the Wire Act pointed out that it would oppose US federal law. The operators had to change the course, which caused delays in kickstarting the online poker market.
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At the moment, there are four active Pennsylvania online poker sites.
PokerStars – it was the first site for online poker in PA that was launched in November 2019. PokerStars is the biggest provider globally that holds the position of being the most popular website among online poker fans. It is owned by the Stars Group. PokerStars was founded in Costa Rica in 2001, and a few years later, it became the first poker room established in the state of Pennsylvania. It operates in partnership with a land-based Mount Airy casino.
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BetMGM poker – The second site that became part of the poker Pennsylvania online scene is BetMGM where it was launched in April 2021. The company started its journey in New Jersey in 2009, but it managed to build an excellent reputation pretty fast. It is owned by MGM Resorts International. Many poker fans agree the site offers all the essentials and the most important thing is that it operates legally. The land-based partner of BetMGM poker is Hollywood Casino.
Borgata Poker – The website joined licensed PA online poker sites the same month the BetMGM did in April 2021. Borgata Poker has been in the industry for almost two decades. It was established in 2003 as a brick-and-mortar resort. Ten years later, it started to offer online poker services in New Jersey in partnership with Bwin. Same as BetMGM poker, Borgata Poker is owned by MGM Resorts International. Its land-based partner is Rivers Philadelphia.
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WSOP.com – The fourth poker online PA site that operates with the license is WSOP.com. Its services became available for all the poker enthusiasts in Pennsylvania in July 2021. It sparked competition among the sites as players have another option that may turn into their first choice. The WSOP.com land-based partner is Harrah’s Philadelphia casino. Wsop.com is owned by Caesars Interactive Entertainment, Inc.