The UIGEA is often cited as a major hurdle for online poker operators in the United States. The law
prohibits financial institutions from processing payments related to online gambling transactions.
However, it does not outright ban online gambling, nor does it specifically target poker. As a result,
while the UIGEA made it more difficult for online poker sites to operate, it did not make it illegal for
individuals to play online poker.
State-Level Legalization
Following the UIGEA, some states began to legalize online poker on a state-by-state basis. The first state
to do so was Nevada in 2013, which legalized online poker through a regulatory framework designed to
offer player protection and ensure the safety of transactions. Since then, several other states, including
New Jersey, Pennsylvania, and Delaware, have followed suit, allowing regulated online poker platforms
within their jurisdictions.
Each state that has legalized online poker has its own set of rules and regulations governing the activity,
including licensing requirements, tax rates, and restrictions on interstate player pooling. For example,
players in New Jersey can only play against others within the state, while Nevada and Delaware share a
pooled player base.
International Online Poker Regulation
While the United States has a patchwork approach to online poker regulation, other countries have
clearer, more centralized legal frameworks.
United Kingdom
The United Kingdom is one of the more progressive nations when it comes to online poker. The UK
government fully legalized online gambling in 2005, and this includes poker. The UK Gambling
Commission oversees the regulation of online poker sites, ensuring they adhere to strict guidelines
related to fair play, responsible gambling, and player protection. This includes enforcing stringent anti-
money laundering protocols and ensuring that poker operators hold the necessary licenses to operate
legally in the country.
Players in the UK can enjoy a wide variety of online poker rooms that are licensed and regulated. These
sites are required to pay taxes on their profits, which contributes to the government’s coffers.
Furthermore, the UK has agreements with other European countries, such as Gibraltar and Malta, which
allows international online poker rooms to legally operate and offer services to British players.
European Union
Within the European Union, the regulation of online poker varies by country. Some nations, like France,
Italy, and Spain, have legalized online poker but operate it within highly regulated, domestic-only
networks. In contrast, other countries, such as Germany, have complicated rules that either ban online
poker or require operators to obtain costly licenses.
The EU also has some cross-border agreements, allowing player pools to merge for a more competitive
experience. For example, France, Spain, Italy, and Portugal recently formed a shared liquidity agreement
that enables players from these countries to play against one another. This has improved the quality of
games and the ability of operators to offer large prizes.