Better Late Than Never
A Pennsylvania lawmaker is trying to force the state's hand over interstate online poker and joining the Multi-State Internet Gaming Agreement (MSIGA).
The Bulletin Board
NEWS: Is Pennsylvania ready to partner with other states for online poker?
LEGISLATIVE ROUNDUP: Alabama’s watered down gambling bill; DFS efforts dead in Florida; Credit card ban in Pennsylvania.
NEWS: Alberta government commissions review for online gambling.
NEWS: Louisiana judge rules the legislature cannot legalize HHR machines without a voter referendum.
BEYOND the HEADLINE: HHRs; yet another workaround.
AROUND the WATERCOOLER: Stricter KYC checks at registration?
STRAY THOUGHTS: The week ahead.
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Pennsylvania Lawmaker Pushes For Interstate Online Poker
Pennsylvania Rep. George Dunbar’s time in the state legislature is ending, and as a farewell gift, he hopes to bring interstate online poker to the Keystone State.
First reported by PokerIndustryPro/PokerFuse, Dunbar, who was in the legislature back when Pennsylvania debated and ultimately passed a comprehensive gambling expansion package that included online casino, poker, and sports betting, has introduced legislation that would require regulators to join the Multi-State Internet Gaming Agreement (MSIGA) within 30 days of the bill’s passage.
Dunbar, a self-described online poker player, told PokerIndustryPro, “Liquidity is a big deal in poker. If you play poker, you know that something like this means more players, larger pots — and larger pots mean more players. And it will help with revenues as well.”
Dunbar and his cosponsors believe the bill is noncontroversial (the bill is merely a way to improve the current product) and, if nothing else, puts the topic of interstate compacting on Gov. Josh Shapiro’s radar. Dunbar noted that the governor could unilaterally approve an interstate compact without legislation.
Legislative Roundup: AL Gambling Bill; DFS Dead in FL; Credit Card Ban in PA
The Alabama Senate passed a pared-down gambling expansion package that includes a state lottery, tribal compacts, and historical horse racing (HHR). Commercial casinos and sports betting, both in the House version, didn’t make the cut. So, what’s next in Alabama? The House could concur (unlikely), try to iron out differences in a conference committee (possible), or drop the idea altogether (also possible).
Daily fantasy sports legislation is dead in Florida. The state’s two DFS bills were not discussed last week, with Friday representing sine die day (a Latin term for a motion to adjourn). Recall that DFS 2.0 operators recently pulled out of Florida following Cease & Desist letters from regulators.
Pennsylvania State Sen. Wayne Fontana has introduced a proposal prohibiting the use of credit cards to fund online gambling accounts. If enacted, Pennsylvania would become the fourth state to ban credit cards for online gambling, joining Iowa, Tennessee, and Massachusetts.
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Louisiana Judge Rules Against HHR Machines
Historical horse racing (HHR) machines are now illegal in Louisiana after Judge Richard “Chip” Moore III ruled the machines could not be authorized by the legislature and needed to pass parish-wide referendums. However, the decision will likely be appealed, so the machines aren’t going anywhere yet.
Per NOLA.com, “No historical horse racing may be conducted in any parish of this state unless and until voters in that parish where historical horseracing is to be conducted approve such gaming by a majority vote,” Judge Moore said.
The argument for the machines is that they are not an expansion of gambling but rather an extension of parimutuel wagering and, therefore, did not need to pass a voter referendum (more on this in the following header).
Critics would argue the machines are slot machines by another name, and it’s hard to argue against that assessment when you see them.
The HHR machines were legalized in 2021 after a compromise with video poker operators limited each current OTB location to 50 machines. Churchill Downs then looked to open new OTB locations, which led to the lawsuit.
According to NOLA.com, there are currently 630 machines at 17 OTB parlors in Louisiana.
Beyond the Headline: What We All Know to Be True
What is the difference between an HHR and a slot machine? On the outside, nothing. On the inside, it’s how the machine randomly selects numbers. HHRs use completed horse races to determine payouts. So, even though they are in a slot machine wrapper, they are legally not slot machines in many locales and fall under parimutuel betting.
The user experience is the same whether it’s VLTs, electronic bingo machines, HHRs, or slots, but the inner workings are vastly different. The following video provides a basic primer on the different games.
Alberta to Spend $1 Million to Review Online Gambling
With gambling expansion looking less and less likely across the US, perhaps we should turn our attention north.
Enter Alberta.
The Canadian province has been on the STTP radar for quite some time and has recently picked up momentum. 2024 is still unlikely, but the three-year budget presented by the Danielle Smith government includes $1 million for the Ministry of Service Alberta and Red Tape Reduction to review the Gaming, Liquor, and Cannabis Act [GLCA] to reduce regulatory burdens and increase contributions to Alberta charities and community facilities.
As I constantly point out, declining revenue is one of the core reasons locales look toward legalization, and Alberta fits the bill. Per the budget, the AGLC saw revenues decrease by $35 million in 2024-25 “due to increased operational expenses from system and platform modernizations.”
Like Ontario, Alberta already has many gray market online gambling operators. As such, the choice is not legalization; it’s regulation.
So, what does an Alberta online gambling timeline look like? According to Troy Ross of TRM Public Affairs, 2024 is a possibility, but that was before the budget was released. The review likely pushes any conversation back to 2025.
“I hope Alberta will go much faster,” Ross told the Gaming News Canada podcast. “My sense is that they would like to be in a position to do something this calendar year.”
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Around the Watercooler
Social media conversations, rumors, and gossip.
I’ve long argued that all customers should be fully verified upfront and that online operators should not ask customers for deeper identity verification for withdrawals. However, that appears to still be the case at most sites.
Sporttrade (a newsletter sponsor) COO David Huffman explained that while he doesn’t oppose stricter KYC checks at registration, friction is the main reason for the difference in deposit and withdrawal policies. Huffman also rightly points out that most people can be identified through standard KYC checks. Only a small percentage would need to provide additional information.
This is an interesting debate with strong arguments on both sides. Huffman makes solid arguments for the status quo, but delaying the friction point until withdrawal could be an RG issue that causes the bettor to not withdraw and keep betting.
Stray Thoughts
Looking ahead to the rest of the week, I will release Episode 3 of the Talking Shop Podcast to paid subscribers tomorrow—it will unlock on Saturday. This week’s guest is David Danzis, who has covered Atlantic City (and other regions) for several years. David and I chat about AC’s history, present situation, future, and a few other topics.
In the feature column on Friday, I will discuss Wynn CEO Craig Billing’s LinkedIn post about online casino cannibalization.