The month of May was all about Pennsylvania. The Keystone State resumed its push for regulated internet gambling on May 24 with a hearing about a spending bill. That bill included an amendment containing the framework of HB 649, introduced by Rep. John Payne. HB 649 would green-light regulated online gaming in Pennsylvania, including poker.

The hearing on May 24 featured a variety of discussion, including debate whether video gaming terminals, or VGTs, should be approved as part of a spending bill. After about an hour of discussion and rampant confusion over the authorship of Payne’s amendment, an amendment authorizing online gaming that was similar to HB 649 was voted down by a 107-81 margin.

If you think that’s the end of the story, however, you’re far from correct. As soon as the vote was made, lawmakers briefly discussed reconsidering iGaming and an amendment about VGTs, but the session ended for the day. The legislature adjourns at the end of June and discussion on the issue is slated to resume on June 6.

Poker Players Alliance (PPA) Vice President Rich Muny explained the relationship between VGTs and iGaming, saying, “VGTs are opposed strongly in the Senate and by casinos, so a House bill containing VGTs will face an uphill battle in the Senate. That issue will be up to the stakeholders to negotiate and sort out.”

Complicating matters in the Keystone State is the departure of Payne, who isn’t seeking reelection this year.

The bill has already cleared Committee and now must be approved by both chambers of Pennsylvania’s legislature.

New York Hearing on June 2

On June 2, internet poker will take center stage in the Empire State. The Senate Finance Committee will discuss Senate Bill 5302C at 9:30am ET. The bill is “an act to amend the racing, pari-mutuel wagering and breeding law and the penal law, in relation to allowing certain interactive poker games.” The bill allows for interstate games. It’s unclear whether a committee vote on the bill will take place on Thursday.

Progress in the Wolverine State

“The Wolverine State,” home to 20,000 Poker Players Alliance (PPA) members, held a hearing about online poker in the beginning of the month. The bill on the table is State Senator Mike Kowall’s SB 889, which permits online poker and online casino games. However, it’s running out of time to pass, as the legislative session will expire sometime in the next few weeks.

According to Online Poker Report, SB 889 doesn’t prohibit out-of-state play as long as there isn’t a conflict with local or federal law. Additionally, it calls for a $5 million licensing fee and a 10% tax on gross gaming revenue. And apparently this bill has been in the works for three years.

PPA Executive Director John Pappas testified at the May 4 hearing in Lansing, pulling out his phone and showing how easy it is to gamble online.

The PPA regularly campaigns for consumer protection, and the Michigan hearing was no different. For example, Pappas cited the lack of issues associated with geolocation and underage gambling in the states where the industry is already legal and regulated.

One issue that could complicate matters in Michigan is Indian tribes’ sovereign immunity. Similar to California, Michigan has a strong presence of Indian tribes in live gaming. But in Michigan, there’s a concern that tribes may have to partially waive their sovereign immunity in order to participate in online gambling.

“The issue of tribal sovereignty could be a deal-breaker and will likely need to be thoroughly debated,” OPR said.

Three representatives from Amaya Gaming, the parent company of PokerStars, testified alongside Pappas at the hearing. The company is a major backer of the bill, according to the Detroit Free Press.

The bill appears to have a future. As CardPlayer said, “Dave Biswas, chief of staff and legislative director for Sen. Kowall, said that there should be one more hearing within ‘the next few weeks’ in the Senate’s Regulatory Reform Committee and it should move on to the Senate floor. It would like remain there for a week or so before moving on to the House for consideration.” No vote was made on the bill in the May 4 hearing, which was largely informational.

“I’m fairly confident we can get it done,” Kowall told Online Poker Report. “There’s still time to get it out of the Senate and sent over to the House for consideration.”

RAWA Language Fails to Make Appropriations Bill

Despite a disastrous hearing in December in a House committee, the Sheldon Adelson-backed Restoring America’s Wire Act (RAWA) was still alive in May, at least in part. According to the PPA and other sources, RAWA-esque language could have found its way into appropriations bills in the US House and Senate.

“Committee reports do not have the force of law, but serve as a mechanism for committee members to express their beliefs and preferences about the legislation they pass,” Gambling Compliance said.

During the third week of May, Pennsylvania Republican Charlie Dent was reportedly going to introduce RAWA-esque legislation into the appropriations bill in the House, but it never came to pass. “Ultimately, Dent withdraws his amendment,” the PPA said in a Tweet. “Equivalent to a failure. We win. RAWA loses. Thank you for taking action to defeat this effort.”

“While it may seem odd that Dent, a Pennsylvania congressman, would seek to override his own state’s efforts on licensing online poker, it may not come as a surprise to learn that Sheldon Adelson’s Sands Bethlehem is in Dent’s district,” Muny said. Adelson, the CEO of the Las Vegas Sands Corporation, strongly opposes the expansion of online gaming.

Senator Lindsey Graham (R-SC) successfully managed to get RAWA language into the Senate’s version of the appropriations bill, but without matching language in the House, his efforts were for naught.

Nevada Open to Liquidity Sharing

In a Nevada Gaming Policy Committee meeting in mid-May, Nevada Governor Brian Sandoval said he’d be open to sharing liquidity with New Jersey. The two age-old gaming rivals have a combined population of almost 12 million people. “I’m ready to go. It’s a win-win for both states,” Sandoval said.

According to Online Poker Report, New Jersey seems amenable to shared liquidity as well. What’s stopping a potential shared market? Two words: Sheldon Adelson.

According to OPR, “There appears to be little political upside for [New Jersey Governor Chris] Christie to extend New Jersey’s regulated gambling market or agree to a shared liquidity compact with Nevada. However, now that Christie’s presidential bid has failed, he may no longer need as much support from Adelson.”

It was rumored that PokerStars’ lengthy licensing process in New Jersey was in part due to Adelson, as well as Christie’s presidential hopes.

Nevada Exploring Online Casino Games

Right now, only online poker is regulated in Nevada. And one brand, WSOP.com, is pretty much the only game in town. That could all change soon, as Nevada is reportedly considering regulating online casino games, similar to New Jersey and Delaware.

According to OPR, 84% of New Jersey’s online gambling revenue comes from casino games, so there’s a large untapped market in Nevada. Interestingly, according to the site, “41% of Total Rewards scheme members who had let their membership lapse reactivated membership after playing online.”

The fears that online gaming would cannibalize live gaming in Nevada, therefore, could be quelled. There’s also evidence that online gaming in Nevada is bringing in a younger demographic, which could set up casinos for success down the road.

June Could Be Key for iPoker in California

According to Online Poker Report, “a California online poker bill with a tax rate acceptable to stakeholders and license suitability language to appease rival American Indian coalitions” could be discussed in committee on June 15. No firm date has been set, but the bill, AB 2863, introduced by Adam Gray, seems to have garnered quite a bit of support. In the latest twist, the state’s powerful horse racing industry would receive a kickback every month from regulated iGaming.