Pennsylvania Ready to Go All-In On Multi-State Online Poker Compact

It seems that Pennsylvania isn’t bluffing when it comes to online poker. This week, Governor Josh Shapiro instructed the Pennsylvania Gaming Control Board (PGCB) to begin the process for Pennsylvania to join the Multi-State Internet Gaming Agreement (MSIGA) for online poker, as reported by Play Pennsylvania.

Although there is no clear timeline for the incorporation, the news is music to the ears of poker players across the Keystone State. Once Pennsylvania joins the MSIGA, players within the state will be able to compete against opponents from other states. In turn, this will increase the prize money pools available for those in the Coal State.

When Would Online Poker Launch?

Local politicians believe the move could come as early as the end of the year. Back in June, Representative George Dunbar confirmed as much to Bonus.com. Three months before, in March, Dunbar introduced HB 2078, a bill that would include Pennsylvania in the MSIGA. 

The proposal is currently being reviewed by the Gaming Oversight Committee. The legislative session of the Pennsylvania General Assembly closes on November 30th.

“If the bill moves during the budget process and the governor signs off on joining the multi-state compact, PA poker players can be playing against players from other states relatively fast. I’m sure before the end of the year,” added Dunbar.

However, there might be other blockers. For example, West Virginia joined the compact in November of 2023 but has yet to establish a launch date as the Mountain State is waiting for an operator to apply for the corresponding license.

A launch was originally anticipated for the first quarter of 2024 but that quickly fizzled out. In February, the new tentative date was for the last quarter of the year, according to West Virginia’s Lottery Executive Director, John Myers.

What Is the MSIGA

One of the critical aspects of online poker is that it requires a copious amount of players in order to flourish. Basically, the more players, the merrier the prize pools will be. This is vital in order to attract more players and grow the local market.

Given that regulation is on a state-by-state basis, those with smaller populations might not be very profitable for both players and local governments.

The Multi-State Internet Gaming Agreement is a pact between multiple states that allows for the pooling of online poker players across different jurisdictions. By pooling players from different states, the MSIGA addresses the challenge of limited player traffic that many small-market states face.

The compact establishes uniform rules and regulations across the different jurisdictions, which is vital for operators active in different markets that might want to capitalize on providing this service across different states.

Currently, the five states that have joined are:

• Delaware
• Michigan
• New Jersey
• Nevada
• West Virginia

The agreement first came about in 2014, when Nevada and Delaware signed a compact to share player liquidity online. Three years later, New Jersey joined the arrangement. Michigan joined in 2022, and West Virginia followed suit last year.

Both West Virginia and Pennsylvania will look to emulate the success witnessed by Michigan. According to official figures, the Wolverine State saw a 32% year-to-year increase in its first two years under MSIGA.

“In order to remain competitive in the gambling sector, I am expressing my strong support for Pennsylvania to join the MSIGA alongside Michigan, Delaware, Nevada, New Jersey and West Virginia. Pennsylvania should capitalize on our status as a leader in legalized gambling, and join this compact, which would bring in additional revenue for the Commonwealth and allow players more gaming options,” Shapiro wrote in his letter to the PGCB.

Pennsylvania Hits Gaming Revenue in FY24

Despite not showing a lot of interest regarding online poker after taking office, it’s understandable why Governor Shapiro is pushing forward with this initiative. 

Back on October 1, the PGCB announced a record-breaking year for the state’s gaming industry. The total revenue reached $5.89 billion, which generated $2.54 billion in tax revenue, according to the 2023-2024 Annual Report.

The Pennsylvania gaming market comprises 18 retail sportsbooks, 17 retail casinos, 12 online sportsbooks and 22 online casinos. On top of that, 74 truck stops offer Video Gaming Terminals (VGTs) and nine fantasy sports contest sites are available.

Officials estimate that the gaming industry accounts for 16,000 jobs, with almost 90% of those positions held by Pennsylvania residents.

Remember that most of the best offshore sportsbooks offer online poker regardless of the state where you are located.