Up until 2013, the primary focus of the Poker Players Alliance, or PPA, has been Federal regulation of online poker in the United States. Now, with two straight Congressional sessions ending with little movement on the issue, the organization is turning its attention to individual states.

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In late 2011, the U.S. Justice Department declared that only online sports betting was not allowed under the Wire Act of 1961, seemingly opening up the door for state-by-state online poker. Since then, three states – Nevada, Delaware, and New Jersey (assuming Governor Chris Christie complies) – have adopted laws permitting web poker and more are certain to follow suit. However, no legalized games have begun.

“The change is really just the intensity at the state level,” PPA Executive Director John Pappas (pictured) told PocketFives. “The more dramatic change is focusing far less on Washington, DC unless, of course, things happen that are going to force us to reengage in a significant way. We don’t have any intention of pushing Federal legislation unless there is a clear signal from the Senate Majority Leader that he is going to be introducing legislation and pushing it through the regular process. We’ve gone two Congresses with back-of-the-room efforts on a Senate bill and it hasn’t panned out. I don’t think we can continue to wait around for that sort of a solution.”

Nevada has gone so far as to introduce a bill allowing its Governor to enter into compactswith other states for interstate online poker. Although Pappas was supportive of the initiative, he was also skeptical as to whether the bill would withstand a legal test: “That’s something we’d want to push. Any state that is considering internet gambling should be including that language. I don’t think there has been a clear legal analysis as to what would be allowed under the law. Certainly the states can engage in compacts, but there are times that the Federal Government can step in.”

He added, “I have seen competing legal theories on what can be done. Anything can be challenged in a court.” States like Georgia and Illinois have begun selling lottery tickets online with no pushback from the Federal Government.

The PPA will be turning its attention to places like Pennsylvania and Michigan. In addition, California and its 37 million residents will be a target. Pappas explained, “The crown jewel has always been California. We’ve always had a presence in California, but I think we’re going to step it up this year with a lot more grassroots advocacy. California has issues beyond what the PPA can control, like Tribal issues, and we hope those can be resolved in a timely manner.”

The PPA has long focused on a Federal solution due to liquidity concerns. Could a smaller state like Delaware support even a single online poker room given its lack of bodies?

Pappas evaluated, “We want to maximize liquidity through state efforts, which is why what you’re seeing in Nevada is a positive development. I think ultimately the Feds are going to act in this regard. It’s really a strategy of building momentum where momentum is growing, and that’s at the state level right now. Ultimately, people in DC will wake up and say, ‘We need a standardized platform.’ It’s going to be really interesting to see how Congress responds.”

We’ve seen some in the industry argue that since brick-and-mortar gaming is governed on the state level, web gaming should follow suit. When asked why the two should be treated differently, Pappas argued, “It’s the cross-jurisdictional nature of the internet. The internet shouldn’t be confined to state boundaries, which is why I think there will have to be Federal oversight of this.”

You’ll recall that Senate Majority Leader Harry Reid (D-NV, pictured) was, to close the second straight Congressional session, reportedly scrambling to pass a bill permitting online poker. Allegedly helping Reid were former UIGEA mastermind John Kyl (R-AZ) and newly minted Nevada Senator Dean Heller (R-NV). However, just as in 2010, no bill was introduced and poker players were once again drawing dead.

“We were trying to find out all along what the status of the online poker bill was and we kept hearing, ‘It’s not the right time,'” Pappas said of the final days of 2012. “The next thing we knew Kyl and Heller said they had the 15 Republican votes needed and then Reid said he’s pulling the bill off the table. There’s a lot of mystery as to what happened.”

Was Reid just bluffing? Did he really have no intention of introducing a poker bill in the first place? Was he simply stringing along campaign donors like Caesars? Pappas responded, “I hope he’s serious. A lot of money has been invested and a lot of time has been invested. His staff has invested a lot of time in it. I certainly hope it was done in a sincere way and not in a cynical way. I don’t think this is a case where the Senate Majority Leader was simply doing this for political reasons. It would mean a lot for the state of Nevada for this bill to pass.”

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