If you know your poker, then you’ll know that there’s something major brewing right here in Pennsylvania. We say, “here in the state,” but, as you are probably well aware, we actually mean online. Yes, the soft launch date for the state’s planned online poker rooms was set for July 15^th. Here’s what we can expect after the initial launch. But first, here’s a little history lesson.

The background

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Back in October 2017, Governor Tom Wolf signed an online gaming bill into law. This new law paved the way for internet gaming providers to enter the market here in Pennsylvania. But, as with most legislation, it took considerable time to get to a point where online providers can now take advantage of this opportunity.

Pennsylvania became only the fourth state to legalize online poker and gaming in the U.S., following in the footsteps of Nevada, Delaware, and New Jersey. However, as the state that is second only to Nevada in terms of commercial casino revenue, it was a move that everybody expected. With an estimated $1.4 billion generated in taxes each year from the live casino industry, the state looks set to make even more money with platforms coming online this month.

Major changes to the local live industry

As you can imagine, there’s a fear that the introduction of online poker platforms will have a detrimental effect on the local gaming industry. However, it seems that most casinos have covered all the bases. Many of the state’s casinos are already partnered with online poker providers to host tournaments in their poker rooms, and those relationships look set to flourish in the coming months.

There will be big changes for some of the state’s smaller live rooms, with the likes of Mount Airy Casino Resort partnered with giant of the online industry PokerStars. With the online poker provider being one of the first major players to step into the state, Mount Airy will no doubt benefit from their partnership. The casino could, in theory, play host to live tournaments, with online qualifiers for the event played through the PokerStars platform. So, contrary to popular belief, online poker may, in fact, have a positive effect on the local live industry.

Regulations for play

As with all poker and gaming-related activity, there are strict rules and regulations that must be followed by all online providers. For example, players must be over 21, and their identity must be verified so that proof of age can be established. They must also be within state lines, and providers must use geolocation software to confirm this. Only players within state lines can play for real money, but those outside the state could, theoretically, play for virtual cash or prizes. The rules are strict and must be adhered to, but as the industry develops, we could see some changes.

Expected economic growth

Being only one of very few states that currently allow online poker platforms, Pennsylvania can expect some growth in the economy. New Jersey reported that after the introduction of their online poker platforms, tourism enjoyed a spike. Yes, as strange as it may seem, people were crossing state lines so that they could spend a night in a hotel playing online poker without fear of breaking any laws. With 197 million domestic visitors currently crossing state lines each year, could we hit 200 million? Perhaps 3 million online poker tourists seems a bit optimistic, but who knows?

Of course, that’s not where most of the money will come in. As we mentioned earlier, it’s the taxes that will swell state coffers. Each provider must pay a tax of 16% on the gross revenues from their online operations. And given that this could be in the hundreds of millions, the state could be in for a massive tax windfall.

There will inevitably be a few teething problems during the soft launch and in the following months. But overall, it looks like the state legislators have done their homework on this. With clearly-defined guidelines and only a specific number of licenses issued, they should be able to handle any obstacles that come their way. Whatever happens over the coming months, it seems that Pennsylvania is set to become one of the leading pack once again, as it has done so many times before.

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