Online Poker in the USA

New Jersey currently ranks as the most active regulated poker market in the USA. Legislation enacted in 2013 allows each of the state’s land-based casinos to partner with one online gaming operator to operate up to five different betting websites.

The New Jersey Division of Gaming Enforcement (NJDGE) oversees the conduct of online gaming in the Garden State and maintains a list of licensed poker sites here.

Under state gaming law, New Jersey may enter compacts with other regulated states so that poker sites licensed in both states may share player pools across state lines. This led to the creation of the All American Poker Network, the first multi-state poker network.

New Jersey Poker Sites

Nevada was the second state to pass online gaming legislation and host a legal US-based online poker site. The legislation made real money internet poker a reality, but it did not legalize traditional gambling. To date, online gaming in Nevada is restricted to player vs. player poker.

Online poker is regulated by the Nevada Gaming Control Board and the Nevada Gaming Commission. The Gaming Control Board maintains a list of licensed poker sites here.

In April of 2013, Ultimate Poker opened for business and began dealing real money poker hands to people within Nevada. WSOP.com came online four months later as the second-ever legal poker site in the US.

WSOP quickly took the lead in player traffic thanks to superior software and more effective payment processing. In fact, WSOP did so well that it helped push Ultimate Poker out of business. Ultimate Poker eventually closed shop in November of 2014.

A third poker site entered the fray in early 2014 under the name RealGaming.com. Real Gaming operated under the online division of South Point Casino in Nevada and was fully licensed to offer real money games to Nevadans but appears to have ceased operations since then.

Nevada Poker Sites

Delaware was the first state to legalize online poker and gambling with the passage of HB 333 in 2012.  The Delaware Lottery oversees the conduct of online gaming, which is offered by the state’s three land-based casinos.

Online poker struggled in Delaware during the first year thanks to a relatively small state population. Delaware enacted player sharing agreements with Nevada and New Jersey to provide a boost in player traffic, but Delaware remains a small market.  

Delaware Poker Sites

Pennsylvania legalized online poker in 2018 as a part of a large gaming expansion bill that also authorized online casino games, sports betting, land-based satellite casinos, gambling at airports and gaming machines at truck stops.

Online sports betting and casino games got underway first with online poker delayed amid the mad scramble to enact the massive gaming bill. Under the PA gambling law, land-based casinos and “qualified gaming entities” (QGEs) may apply for licenses to offer online poker.

A handful of local casinos have either launched online poker or have announced plans to do so in partnership with major international operators. The Pennsylvania Gaming Control Board (PGCB) maintains a list of licensed poker and gaming sites here.

Pennsylvania Poker Sites

West Virginia legalized online sports betting in 2018 and followed that with another bill the next year authorizing online poker and casino games. The WV Lottery Interactive Wagering Act allows each of the state’s five casinos to launch online poker sites and casinos with approval from the WV Lottery.

Mobile sports betting is now live in WV, but online poker and casino games are moving on a slower timeline. In March 2019, WV Lottery Director John Myers said the goal is to have the first poker sites and online casinos running by February 2021.

West Virginia Poker Sites

Michigan legalized online poker with the passage of a large gambling reform package approved in the final days of 2019. In addition to authorizing online casino games and sports betting, the package specifically legalized online poker.

The MI poker law allows land-based casinos to apply for licenses to launch up to two online gambling platforms offering casino games and online poker. The first MI poker sites will launch after regulators finish drawing up regulations and establishing a licensing process for operators.

Michigan Poker Sites

The law approved by voters in 2018 to legalize sports betting and four casinos in Arkansas may have also opened the door for online poker. Regulations (pg. 77) issued the following year include provisions that allow operators to apply for online poker licenses from the Arkansas Racing Commission.

Other poker-related provisions include rules governing the detection and prevention of criminal activities, maintaining records, setting a minimum age of 21 and establishing an initial licensing fee of $1,000.

Arkansas Poker Sites

The first online poker sites opened their doors to US players in the late 90s. Although federal law at the time did not specifically criminalize online poker, there were concerns that the Federal Wire Act could be applied to the operators of poker sites. As a result, all the major poker sites of the time operated from outside the US.

The online poker boom of the early 2000s pushed the game to the mainstream consciousness and resulted in rapid industry growth, but the boom also brought with it increased scrutiny from regulators.

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in an attempt to crack down on unregulated offshore poker sites, gambling sites and sportsbooks. The UIGEA itself did not criminalize the act of playing online poker, but rather made it a criminal offense for financial institutions in the US to process transactions related to illegal gambling.

The offshore poker industry largely ignored the passage of the UIGEA and continued operations as normal despite increased difficulties in processing deposits and withdrawals.

On April 15^th, 2011, a day now known as “Black Friday” among poker players, the US Department of Justice struck a major blow against the offshore industry. That day, the DOJ indicted eleven individuals and seized the domains and related bank accounts of the three largest US-facing poker sites (PokerStars, Full Tilt Poker and Absolute Poker) for violations of the UIGEA.

The Black Friday indictments prompted most remaining poker sites to exit the US market completely once it was clear the US government was serious about cracking down on unlicensed online gaming. A handful of smaller poker sites pushed onward despite the legal risk, but the offshore poker industry would never fully recover.

The march to legal online poker in the USA began in earnest just months after the Black Friday indictments. In 2009, officials associated with the New York and Illinois state lotteries asked the DOJ to weigh in on their plans to sell lottery tickets online. Specifically, the lottery operators wanted to know if online ticket sales would violate the Federal Wire Act.

The DOJ responded in September 2011 with an opinion stating that the DOJ interprets the Wire Act as applying to sports betting only. Although the opinion made no mention of online poker, the implication was clear: states could legalize online poker and gambling without fear of violating the Wire Act.

The states’ newfound ability to legalize online poker also cleared the UIGEA hurdle because the UIGEA specifically targets unlawful internet gambling. New Jersey, Nevada and Delaware quickly moved to pass legislation authorizing online poker and would later be followed by additional states.

Yes. Most poker sites offer mobile poker clients for iOS and Android devices. Some mobile poker clients even support multi-tabling.

Yes. Nearly every legal poker site offers a native Mac download for desktop users.

No. Poker laws only require that players be 21 or older and physically located within state lines in order to play online. State residency is not a requirement.

Poker sites licensed in the United States are safe and fair. Regulators in states that have legalized online poker make consumer protection a high priority in terms of licensing conditions, laws and additional regulations.

Acquiring an online poker license in the USA is no small task. Would-be operators must prove to regulators that they are financially suitable, have the technical ability to protect the games, are able to comply with all regulations and more.

Offshore poker sites offer no such guarantees.

Online poker sites make their money by charging “rake.” In cash games, a little rake is collected from every pot. The percentage varies but is usually somewhere around 4 to 5% with a maximum cap. In lower stake games, the rake may cap at anywhere from $0.30 to $1. As you move up in stakes, the rake caps out at around $5.

Also note that rake isn’t taken out of every pot. If the hand doesn’t make it to a flop, most poker sites do not take a rake. Overall, the rake system is viewed as a fair price to pay. The rake isn’t so excessive that it kills profitability. You can still generate a nice income at poker despite the rake.

In tournaments, a little rake is added to every entry fee. If you see a tournament listed as $5 + $0.50, that means $0.50 is kept by the poker site as rake. The remaining $5 goes directly to the prize pool. In most tournaments, the rake is equal to about 10% of the buyin.