The Multi-State Internet Gaming Agreement has been an integral part of the new United States online poker market for nearly a decade.
Since Black Friday – April 15, 1011 – when the US government seized poker sites like PokerStars and Full Tilt, it became apparent that the only way for operators to be completely safe in the US was to obtain licenses on a state-by-state basis. States would need to specifically legalize online poker and issue licenses for individual sites. From there, the only way to regain any semblance of the online poker success that was a part of the poker boom was to combine player pools across state lines. The Multi-State Internet Gaming Agreement was a part of that.
It seemed like a plausible if not daunting process. However, Nevada, Delaware, and New Jersey did it in 2017. The only problem was that Nevada had only one poker site – WSOP on the 888 platform – as did Delaware. That made it the only poker site able to expand across state lines.
Since then, Pennsylvania and Michigan also legalized online poker. Sites like WSOP, PokerStars, and BetMGM launched in those states, making them ideal candidates to share player pools with New Jersey (and Nevada and Delaware for WSOP only).
Connecticut and West Virginia also legalized online poker. However, those states realized their markets were too small to be profitable on their own. Their participation in MSIGA would be integral to attracting poker operators and launching sites.
It all may be a little complicated, but participants in the process see how it can be done.
https://twitter.com/pokerprojones/status/1591043339213631488?s=20&t=GMm5I280NIZIT1qhE13vGQ
Why, then, hasn’t MSIGA expanded the market since 2017?
No One Oversees the Market
The biggest problem with the multi-state agreement is that there is no governing body, no industry-led body overseeing the US online poker market.
Each state is charged with handling its own market. This is proper because each state’s market is different. However, it then falls into the hands of each state’s governor – as requested by each state’s gambling regulator – to partner with all of the other states and gambling regulators to sign the Multi-State Internet Gaming Agreement. Governors must sign the agreement.
Considering this is such a small part of each state’s market and gambling revenue, it is not a priority. Governors have many, many other priorities.
The Michigan Example
As mentioned, the singular instance of player pool sharing in the US market happened in 2017 when Nevada and Delaware matched up with Nevada.
When Michigan signed on to MSIGA earlier in 2022, it raised the hopes of online poker players. All of the states agreed to the MSIGA language by April 2022, and everyone from players to analysts believed sites could launch their combined player pools within months.
https://twitter.com/SteveRuddock/status/1512031354619416576?s=20&t=GMm5I280NIZIT1qhE13vGQ
At the very least, the WSOP would link Michigan to its other states before the 2022 WSOP for bracelet events, right?
No.
As November began, there was still no word from the WSOP, PokerStars, or BetMGM as to possible launch dates for their combined sites.
In mid-September, Pokerfuse heard from representatives for PokerStars and WSOP that there were “no developments for interstate poker.” It appears that, despite MSIGA being signed, the Michigan Gaming Control Board must approve each operator individually.
And the Others?
There are other states that could sign on to MSIGA as well. Pennsylvania launched online poker in 2019 and boasts of several online poker sites that also operate in other states. But the Pennsylvania Gaming Control Board has yet to successfully work for or persuade the state’s governor to sign MSIGA.
In addition, two other states legalized online poker in the past several years. West Virginia did so in March 2019, and Connecticut did the same in May 2021.
Yet and still, there are no online poker sites running in either state. This is because poker operators know that their player pools would be too small to earn sufficient revenue on their own. While neither state’s gambling regulator speaks on the issue, it appears that they will only launch poker sites when they can do so in connection with other states.
That leads back to MSIGA.
All roads lead to MSIGA for the launch of more poker sites in the US market, for the growth of said market, and for more states to see the potential in online poker revenue.
PokerStars to Break the Silence?
On November 4, PokerStars posted a list of promotions for sites in the US market that will take place this month. It includes much standard fare, as well as a Fall Fest online poker series, one each for Pennsylvania, New Jersey, and Michigan.
https://twitter.com/PokerStarsUSA/status/1591082574666993665?s=20&t=GB_EM0hrA2Ba9pMXHE0ALg
At the bottom of the post, this message appeared:
“Keep an eye out for more exciting US news coming soon.”
Of course, this could be an announcement of holiday promotions on the three sites. But it could also be the launch of PokerStars’ combined player pool for Michigan and New Jersey. Players remain hopeful.
