Study Suggests Online Poker Wouldn't Hurt State Lotteries

A new study commissioned by Fair Play USA suggests that fears over the potential for online poker to sap money away from state lotteries have been exaggerated. According to a data analysis from the pro-online poker group, the number of American players participating in online poker has had no impact on state lottery revenues.

The analysis was written by Christiansen Capital Advisors, and suggested that poker and lotteries simply cater to different segments of the gambling market. According to Business Week, one of the firm’s founding partners compared the two to beverages.

"Wine and milk satisfy different consumer appetites," said founding partner Eugene Christiansen. "Similarly, playing online poker and buying lottery tickets are fundamentally different forms of consumption. They really have nothing in common other than their legal status as gambling."

The analysis was done in part to contradict a report that was made in favor of a state-level licensing scheme for online poker, which would give state lotteries the power to more directly control poker sites. According to a report from the Public Gaming Research Institute, states could lose up to $1.4 billion if online poker were permitted throughout the United States at the federal level.

However, Fair Play USA disputes this finding – and not only because of the results of their study. Officials for the organization – which is backed by several major American casino groups – point out that their preferred version of online poker legislation would give states the option of opting out from the online poker system for any reason.

At the moment, there are multiple bills addressing online poker that are currently working their way through the United States Congress. While none of these bills appears close to a full vote, at least one bill – the one introduced by Representative Joe Barton (R-Texas) has been the subject of committee meetings and has generated some momentum among legislators.