Growth of US Online Poker in 2013

The efforts to regulate US online poker were far more successful in 2013 than in the years between 2006 and 2011. The need for regulated online poker was first felt following the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, which forced a number of US-facing online poker rooms to leave the US.

In 2013, three US states—Delaware, New Jersey, and Nevada—regulated online poker. The year 2013 can therefore be considered as the beginning of legalized online poker in the country.

In February 2013, Chris Christie, the governor of New Jersey, declared that he would approve the state’s online gambling bill if certain changes were introduced into it. The bill was modified as per the governor’s instructions and sent back to his desk three weeks later, after which it was immediately approved. Work on establishing a regulatory framework for New Jersey’s online gaming industry began in earnest, and in the meantime, Nevada launched the country’s first licensed online poker room—Ultimate Poker, a brand belonging to Station Casinos.

In 2013, representatives Joe Barton and Peter King introduced federal-level online poker bills, but they were not successful. The Congress scheduled a couple of hearings for online gambling. The senate subcommittee on consumer protection, product safety, and insurance scheduled a hearing on July, but the senators were not well-informed on the issue of online gaming. To make matters worse, those who testified highlighted fears that legalized online gaming could lead to drug trafficking, human trafficking, and money laundering.

In August 2013, Jack Weinstein, a district court judge, ruled that Lawrence DiCristina, who was accused of hosting illegal poker games, cannot be found guilty because the Internet Gambling Business Act (IGBA) does not clearly mention poker. The judge also pointed out that poker cannot be placed with other games of chance as it is a game of skill and strategy. The US Appeals Courts, however, refused to agree with Judge Weinstein and ruled that, as the state law prohibits poker gaming, the fact that the IGBA does not mention poker becomes irrelevant.

Early in November 2013, Delaware became the first US state to launch online gambling sites offering not only poker, but also online casino games.

From February to November, the online poker community eagerly waited to see if New Jersey would grant a license to the online poker gaming giant PokerStars. However, it turned out that PokerStars cannot enter the New Jersey market immediately. The New Jersey Department of Gaming Enforcement (NJDGE) decided not to review PokerStars application for an online poker license because the US federal government had charged its founder Isai Scheinberg of illegal gambling and money laundering.

When online gambling sites turned live in New Jersey, Sheldon Adelson, the chairman of Las Vegas Sands, emerged as the biggest opponents of online poker legalization. Claiming that legalized online poker would lead to problem gambling, Adelson announced that he would launch a campaign against it. However, online poker has so many supporters in the US that Adelson’s campaign is not likely to be successful.

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