Wire Act Interpretation Could Open Floodgates for State Level Online Poker

Industry analysts expect many states to push for legalized intrastate online poker programs during 2012 in reaction to the recent Justice Department interpretation of the Wire Act. According to a recent DoJ memo, the Wire Act should be interpreted as outlawing only sports betting over the phone or internet, and shouldn't ban poker or other casino games.

According to a report in the New York Post, gaming analysts believe that at least five states will make a push for legalized online poker this year.

“We believe there soon will be enabling legislation in some of these states, which could expand quickly as other states in desperate need of tax revenue seek to tap into a new (and potentially large) revenue source,” said gaming analyst Harry Curtis of Nomura Securities.

In combination with the new licensing laws put into place in the state, the Wire Act finding makes it seem very likely that Nevada could become an online poker-friendly state by the end of 2012. However, they are far from the only state that seems likely to at least consider such a move.

Other states that have previously debated online poker legislation include California and New Jersey, and both are expected to revisit the debate again this year. In the case of New Jersey, the state legislature actually passed a law that would have allowed for online poker in the state; however, the bill was vetoed by Governor Chris Christie due to concerns over whether such a move would be legal under federal law. If that was truly the only hurdle to online poker in the state, New Jersey could be a likely spot for online poker to flourish.

Other major markets mentioned in the report were New York, where expanded land-based gambling has already been heavily pushed, and Illinois.

According to another report by Roger Gros of Global Gaming Business, there's also the possibility of states combining their player pools to increase revenue. According to Gros, one such plan is being considered by Nevada and California, two states that share a border. It's a natural pairing, considering Nevada's gaming expertise and the large population of California.

It is likely that interstate online gambling exchanges would also pass legal muster. Several lottery programs allow players from several states to participate, including large jackpot games like Mega Millions and Powerball.