Over the past two months, more and more indications have been surfacing that, among many other things, we may remember 2017 as the year when a fourth US state legalized online poker. New York’s online poker legalization effort can be traced back to the spring of 2013, which means that it has been almost four years now that the state has been trying to bring the online game to local players, but without much success.
One particular name has been present in almost every article related to the legalization of online poker in New York over these past four years. Assemblyman J. Gary Pretlow, Chair of the New York State Assembly Committee on Racing and Wagering and one of the state’s top gambling officials, has been deeply involved in the evolution of the effort. And although his latest bill on the matter – A 5250 – may eventually be the one to bring the game to residents of the Empire State, the lawmaker has not always been so positively disposed towards it.
In a recent interview for FiOS1, Assemblyman Pretlow gave further indications that the online poker effort has finally gained final support to survive through the Legislature and come into effect as a law. Several important things can be highlighted from the legislator’s interview, which can be seen here and here.
In the first place, Assemblyman Pretlow clarified his current position on online poker, compared to his previous stance. He said that he had previously had certain issues with the legalization of the game, issues that have gradually been erased through thorough collection of information. One of the problems the lawmaker had with online poker was whether it was a game of chance or a game of skill. In his latest interview, Assemblyman Pretlow said that online poker, and poker in general, can be either a game of luck, or a game of skill, depending on the way players approach the poker table.
Here it is important to note that the long-time skill-versus-luck debate is very important for New York’s online poker legalization effort. Under the state’s constitution, the expansion of games of chance is only possible if a constitutional amendment is adopted. However, both A 5250 and S 3893, an identical legislative piece introduced in the Senate last month, aimed at legalizing online poker as a game of skill, which, in turn, cannot be interpreted as gambling expansion.
Another important topic commented by Assemblyman Pretlow in his FiOS1 interview was geolocation. When first proposals for the legalization of online poker emerged in the Legislature several years ago, the Assembly Committee on Racing and Wagering Chair voiced concerns on whether it would be possible to restrict online poker only to those located within New York’s borders. Several years later, Assemblyman Pretlow seems to be convinced in the effectiveness of the geolocation tools deployed by gambling operators in neighboring New Jersey.
Last but not least, the legislator wanted to gather enough information on the technology that makes sure that online poker can be played in a fair manner and cheating can be restricted. Apparently, he has been satisfied with what he has learnt from industry insiders. Assemblyman Pretlow told FiOS1 that complex algorithms that would prevent fraud would be deployed when and if online poker is legalized.
The interview definitely raises hopes that the game will be brought to New York this year. The state Assembly had previously been the stumbling block that had prevented the effort from being materialized. It now seems that it will no longer be an obstacle. Yet, Assemblyman Pretlow pointed out that there were members of the New York administration that were opposed to the online poker measure. According to them, the legalization of the game’s online version would make it “too easy for people to gamble.” It is yet to be seen whether lawmakers will be able to convince those in doubt to give the nod to the effort.
New York’s Online Poker Effort – How Did It All Begin?
First proposals for the legalization of online poker were made back in the spring of 2013 when the state Senate proposed a bill on the matter that was to be tacked onto a larger budget measure for that year. It was eventually decided that the poker bill would not be discussed during the ongoing legislative session but would be proposed at a later stage.
Lawmakers were well-aware from the very beginning that convincing Assemblyman Pretlow that online poker would be good for the state would be one of their most important and challenging tasks. The measure did not move any further in 2013, as lawmakers were busy with other gambling-related matters.
In fact, Assemblyman Pretlow was one of the people behind the expansion of the state’s brick-and-mortar casino industry. It was exactly in 2013, when New York adopted a constitutional amendment for the construction of up to four non-tribal Upstate casinos that would offer various Las Vegas-style casino games.
A year later, in the spring of 2014, Sen. John Bonacic, Chair of the Senate Racing, Gaming, and Wagering Committee, renewed the online poker push. Sen. Bonacic turned into one of the staunchest supporters of the legalization of the game over the next years. An Assembly version of his bill was presented several months later. The measure was sponsored by none other than Assemblyman Pretlow.
The 2014 push was destined to fail, mainly because lawmakers kept themselves busy with the state’s land-based casino expansion. Reports emerged that online poker would not be paid much attention before the above-mentioned four Las Vegas-style casinos opened doors. And although online poker proponents tried to draw more attention to the two legislative pieces by arguing that unlike brick-and mortar casinos which would not bring revenue contributions for years, online poker would become an immediate contributor to the state’s coffers. Despite efforts, the two bills were not given much consideration in the New York Legislature.
Sen. Bonacic has remained incredibly persistent over the past years. He led the online poker push in 2015, although no actions were taken by legislators towards its consideration and potential implementation. It was next year when actual progress was made. In the summer of 2016, a Sen. Bonacic-sponsored bill passed a crucial committee vote. However, the effort failed to gain the necessary support in the Assembly, as Assemblyman Pretlow noted that uncertainty clouded the way the state’s online poker industry would be regulated and prevented from wrong-doings.
However, despite the multiple failures over the past four years, it can be said that the solid foundations have been laid that, with a little more effort from legislators, may finally open New York’s market for legalized online poker.
Will Online Poker Be a Profitable Trade in New York?
First online poker attempts were made in New York shortly after neighboring New Jersey legalized online gambling within its borders. Assemblyman Pretlow hinted in his recent interview that the state’s online poker regulations will be to some extent based on what had already been implemented next door.
Online poker has not proved to be such a profitable segment in New Jersey over the past three and a half years since first online poker operations went live there. However, here it is important to note that online gambling offering in New Jersey is not limited to poker. Local players also have access to slots and table games.
On the other hand, New York lawmakers have no interest in other iGaming options and are solely focused on online poker. It is believed that the game can generate revenue of $60 million during the local websites’ first years of operations. What is more, the state is also also earn significant amounts of money from licenses. Under the newly introduced online poker bills, there will be up to 10 online poker licenses up for grabs. Both local casinos and racinos will be able to apply for licensure and to work with international online poker operators.
It is also important to take into account the fact that New York State is twice as big as New Jersey in terms of population, which means that online poker options will get exposure to a larger audience, when and if legalized.
Will PokerStars Be Allowed to Enter New York’s Market?
One of the largest scandals in the online poker history – dubbed Black Friday of online poker by the international poker community – actually originated from New York. It was on April 15, 2011 when news emerged that PokerStars, Full Tilt, and Absolute Poker were sued in the US District Court for the Southern District of New York for violating a federal Internet gambling ban and providing real-money online poker options to US-based players.
This is why it will be interesting to see whether PokerStars, the only surviving of the above-mentioned three poker rooms, will be allowed to enter New York’s online poker market. There are no “bad actor” provisions in the Assembly and Senate bills that deprive the operator of eligibility, but this does not mean that measures will not be taken against its entrance at some point in future. Such provisions may be added at a later stage or it may be left to the New York State Gaming Commission to decide who can or cannot operate within the state.
