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Skill or luck? The difference between the two has oftentimes been used as a barometer as to whether a game is considered legal or illegal within various jurisdictions of the United States. A new effort by a New York State Senator seeks to follow suit and allow certain interactive poker games based on the premise that they are considered to be games of skill rather than chance.
New York State Senator John J. Bonacic has sponsored Bill S5302-2015, which has the stated purpose of authorizing "the New York State Gaming Commission to license certain entities to offer for play to the public certain variants of internet poker which require a significant degree of skill, specifically 'Omaha Hold'em' and 'Texas Hold'em.'" Texas Hold-em has been largely made popular in the past decade through the televised World Series of Poker and World Poker Tour.
The Bill was introduced on May 13, 2015 and has been referred to the Racing, Gaming and Wagering Committee. If made law, the Bill would provide up to 10 licenses for operators who may then provide certain types of online poker . The proposed cost for each license is $10 million and will remain in effect for 10 years. Additionally, license holders will be hit with a 15% state tax on their interactive gaming gross revenue.
The stated justification for submitting the Bill for debate is that many New York residents are currently participating in illegal, unregulated and unsafe games based on chance. New York State Senator Bonacic wants to implement high standards for eventual licensees and restrict the offerings to games of skill, and Bonacic holds that Omaha Hold'em and Texas Hold'em fall within such a definition. It is suggested that the law would provide increased regulation and a bounty of revenue for the state emanating from taxation of the games of skill.
Nevada, New Jersey and Delaware are currently the only states to offer legalized online poker. However, despite the existence of legalized online poker in certain jurisdictions, there still exist many banks and financial institutions that wish to stay away from partaking in online gaming transactions according to USPokerSite.net. In-depth discussions about geo-location and controlling for fraud may eventually help calm nerves of executives at banks and financial institutions, but for the time being, quite a few actors in that space are staying away from getting involved.
Last year, I suggested that New York could join Nevada, New Jersey and Delaware as states that allow for certain forms of online poker. State Senator Bonacic's latest effort could finally be what pushes the New York to become the 4th state in the U.S. to legalize certain types of online poker, as long as the outcomes of such games are deemed to be based primarily on skill. Bonacic has been down this road before, introducing a similar Bill that would have also recognized poker as a game of skill.
Darren Heitner is a lawyer and the Founder of South Florida-based HEITNER LEGAL, P.L.L.C., which has a focus on Sports Law and Entertainment Law.
