When Did Online Poker Start
Gambling has a long and winding history. And if you have been contemplating joining a gambling platform, chances are you have always asked several questions. In this post, we walk you through the history of online gambling, including changes that have taken in an industry that is projected to be worth over $565 billion by the years 2022.
Online Gambling: How Did It All Start?
Online poker giant 888Poker expresses optimism over the online poker agreement enacted between the states of Nevada and Delaware. The official 888Poker statement went on to say: 'This pooling compact will help 888 and its partners deliver a world-class gaming experience to poker players in Delaware and Nevada given we are the only operator live. The purpose of this article is twofold. First, we attempt to summarize the current legal status of online poker in the United States. You may be surprised to learn that, despite a confusing legal landscape, it is generally accepted that playing online poker is currently legal in the U.S., at least at the federal level.
While gambling in land-based casinos preceded online gambling, the success of the latter is attributed to the advent of the internet. The internet is arguably one of the most transformative tech inventions in the history of mankind. And there is no doubt about the fact that the gambling industry has since benefited immensely from progressive changes and amendments to internet laws.
The first online gambling platforms were launched in the 90s, paving way for an industry that has since grown by leaps and bounds. The first online gaming platforms for gamblers started in the Island of Antigua and Barbuda, thanks to the enactment of legislation popularly known as the Free Tradeand Processing Act. At the same time, a major game supplier for gambling platforms known as Microgaming (Founded in the Isle of Man) was gaining traction. Today, the software company is a giant with which to reckon. NetEnt, another game developer in Sweden was also launched, further pushing the online gambling industry forward with live dealer games, online casino jackpots, table games, card games, and other branded online casino games.
While the development of more gambling platforms, such as the issuance of gambling licenses in Canada around 1996 was laudable, there are factual inaccuracies relating to software providers we should discern. For example, there is confusion among historians regarding which gaming site between InterCasino and GamingClub came first. The truth is that with Microgaming realizing rapid development in the early 1990s, GamingClub, which is its flagship virtual gaming platform, was the first to be launched. Over time, more gaming platforms got licenses, pushing the number of legal sites to at least 200 gambling sites by the year 1997. In a nutshell, the industry started realizing explosive growth with revenues exceeding $1 billion towards the new millennium (the year 2000)
By the year 2000, a major development in the sports betting industry took place with the launch of Betfair. The most notable aspect of online gambling around the same time is when the Betfair gaming platform introduced peer-to-peer betting. The wagering system was explosive, and particularly unique at a time when sports betting was not much-conceived by players in the gambling industry. In the year 2002, more innovative ways of placing wagers on sports were introduced. In particular, live sports betting (also known as In-Play gaming) stretched gaming technology to a new high. Over the years, live gaming has only become more popular, and with the introduction of cross-platform gaming capabilities, sports gamblers can only look forward to more exciting innovations in the future.
Sports Betting, Growth Momentum, and The First Sites.
While the first online gambling sites focused on offering casino and poker games, sports betting was equally gaining traction. The first platform for lovers of traditional sports was InterTops, launched in 1996. Within two years after the launch of InterTops, Ladbrokes, William Hill, and later Betfair launched their gaming websites. During their first few years, the first two online sportsbooks gave huge bonuses as incentives to gamblers. However, a lot has changed over the years. For example, the amount of bonuses has significantly reduced, albeit, gamblers can still find attractive offers on some websites.
The Advent of Poker Gaming Sites, Failures and Opportunities
Sometime in the year 1998, the first poker gaming site was launched. It because known as Planet Poker. However, the site faced some challenges that halted its growth despite attracting huge numbers of gamblers from the onset. Given that at this time, gamblers still relied on dial-up services when placing wagers, technical challenges such as internet speed made it difficult to break even. However, the failure of Planet Poker became a springboard for more poker platforms.
In 1999, Paradise Poker which started in Costa Rica was launched and in a short time, it became a force with which to reckon in online poker gaming. In the year 2001, PokerStars and PartyPoker were launched. The two sites witnessed rapid growth beyond expectations, becoming the best poker gaming sites in the world. The success of the two platforms was particularly attributed to their unique approach to online poker gaming, especially the inclusion of poker tournaments. Big winnings on the two platforms have equally inspired a generation of internet poker players since the year 2003.
The Unpopular UIGEA Legislation in the Development of Online Gambling
Like with every other innovation since the advent of the internet, online gambling was not spared from unpopular setbacks. Enforcement of the Unlawful Internet Gaming Enforcement Act, abbreviated as UIGEA, became a major setback to online gambling. In the mid-1990s. the U.S lawmakers passed a congressional Act that dealt the gaming industry a huge blow. The Act’s major undoing to online gamblers was outlawing depositing or withdrawing winnings from a gambling site. Technically, it banned gambling of any nature in the United States.
With the enactment of UIGEA, confusion ensued. Internet poker players had no other option but to revert to land-based casinos. Most poker sites were forced to shut down. It is, however, noteworthy that the legislation did not outlaw online gambling. It meant most gambling sites had to shift base from the U.S.A to other countries. Some gambling sites like PokerStars, Absolute Poker, and others, however, still accepted gamblers from the U.S.A until a crackdown by the government in 2011 shut them down completely.
Final Thoughts On the History of Online Gambling
Since the advent of online gambling in the mid-1990s, there have been remarkable milestones. That is not to mention setbacks almost ended something that was to late employ millions of people around the world, both directly and indirectly. In 2015, Microgaming celebrated the biggest jackpot, and a year later, the company launched Virtual reality gaming powered by Oculus Rift technology. Something even more mind-boggling in the history of gambling is the launch of an AI (artificial intelligence) operated gambling platform known as Omnia Casino in 2018.
Back in New Jersey & More States to Come in 2020?
Currently, PokerStars is only available in New Jersey and Pennsylvania.
Updated March. 5, 2020 – PokerStars launched in Pennsylvania and has the highest traffic of all regulated poker sites in America. It also hosted the Pennsylvania Online Championship of Poker. This was a huge series with more than $1 million in guaranteed prizes. It took years, but it looks like it was worth the wait for Pennsylvania players.
PokerStars has been running strong in New Jersey since 2016, but it hasn’t reached the size Pennsylvania has. A shared player pool could really kick things up a notch though. We’ll see if success in Pennsylvania leads to PokerStars in more states.
Legal Online Poker in the USA
When Did Online Poker Start
Six states have legalized online poker. Out of those, four currently have sites up-and-running. Nevada, New Jersey, Delaware and Pennsylvania. Two more states legalized online poker but are still working on setting things up. West Virginia, legalized online poker in 2019. But online poker sites there aren’t expected to launch until 2021. The same goes for Michigan.
When it comes to PokerStars, only two states have Poker Stars software. PokerStars gained approval to operate in New Jersey in 2015. Their site, pokerstarsnj.com, went live on March 21, 2016. Of course, you have physically located in New Jersey to play. It’s play money for all other states. PokerStars NJ also offers casino games like slots, blackjack, roulette and more.
PokerStars then launched in Pennsylvania in late 2019. They kicked things off with the Pennsylvania Championship of Online Poker that drew thousands of players and culminated in a $300 buy-in main event with a $100,000-guaranteed prize pool.
If you’re not in Pennsylvania or New Jersey, PokerStars could still come to your state further down the line. If you want to play today though, there are still plenty of great alternatives.
Best PokerStars Alternatives for US Players
We recommend Ignition Poker as the best alternative. A lot of people prefer it to non-state run sites since they accept players from all 50 states. Bovada, BetOnline, SportsBetting, ACR, Black Chip Poker and Intertops also rank highly. As state by state rollouts occur, we will continue to keep you updated on when PokerStars makes it to your state.
Can You Play PokerStars in the USA?
Real money online poker play on PokerStars is only available if you are physically in New Jersey or Pennsylvania. PokerStars will be in more US states soon though. West Virginia and Michigan are the current front-runners to join the party.
When Did Online Poker Start
PokerStars, which also owns Full Tilt Poker, is currently owned by The Stars Group, formerly called Amaya Gaming Group and is headquartered in Toronto, Canada. PokerStars is partnered with Resorts Casino Hotel in Atlantic City, and their main competition in the state is WSOP/888 and Borgata/PartyPoker. In Pennsylvania, they teamed up with FoxBet, which is the real-money wagering provided by FOX Sports.
While there’s online poker Delaware and Nevada, but PokerStars has yet to get a license in either state. If you do not live in either New Jersey or Pennsylvania, we recommend Ignition Poker or Betonline.ag. They are safe and trusted sites that service all 50 states. Check out our reviews for a comprehensive look at how each online poker site. We detail the most important factors to look at when picking an online poker room.
Make no mistake. Online poker is legal in the USA. It’s 100% legal for you to play. Don’t have to worry about getting arrested.
How Many Players on Pokerstars?
PokerStars remains the largest poker site on the internet with tens of thousands of players logging in weekly. PokerStars traffic is far superior to any other poker website and it controls over 50% of the market.
The sale of PokerStars has now changed the game in the US market. It is a prerequisite for any online casino that operates with a US license to also have or be partners with a US operated “land-based” casino. PokerStars partnered with Resorts Casino Hotel in Atlantic City, NJ. Unfortunately, PokerStars has struggled with its NJ-based traffic. On the bright side, Pennsylvania has been a traffic bonanza for PokerStars since it launched in late 2019.
PokerStars also made a massive deal with gigantic casino conglomerate Eldorado Resorts, which operates properties across 12 different states. The US government has to be pleased that PokerStars is playing ball and infusing the US market with plenty of cash.
When Will PokerStars Return to the USA?
It kind of already is. If you’re in New Jersey or Pennsylvania, just download the software. If you’re in another state, then you’ll have to wait. Regulated online poker has been moving pretty slow. Even then, some states that have legalized it haven’t let PokerStars in. That’s because they have another obstacle. Some important gaming groups in the USA see the brand as a bad actor because it operated without a license in the USA for years.
The brand is still incredibly popular around the world though. The site also paid over an estimated $850 million in fines because of Black Friday. It might take some time, but PokerStars will make its way back to the USA on a broader scale.
Good Faith Will Not Prevail?
While some US states have been reluctant to allow PokerStars back, it should be noted that the company bailed out tens of thousands of American poker players. Full Tilt famously didn’t have funds on hand to repay its players after Black Friday. PokerStars then bought Full Tilt and repaid all its players for millions and millions of dollars.
PokerStars was simply a better-run business and separated their player accounts from operating expenses. It was, therefore, an easy task for PokerStars to immediately pay back its players after they were forced out of the US market in 2011. PokerStars was also better at becoming a global poker business. Most of its player traffic came from outside the USA.
This act of good faith was on top of the hundreds of millions they paid out in penalties to US officials. It was an example of responsible gaming. As more and more casinos based in the USA secure their licenses to operate, PokerStars will likely be entering several of these state-regulated markets.
When Will I Be Able to Play PokerStars in my State?
When Does Online Poker Start In Pa
We have in-depth real money online poker guides for many of the US states that are updated whenever there are changes to state legislation. Unfortunately, there’s no clear-cut guide to when online poker will be legalized in each US state. For now, it appears that progress will only occur at the state level and a federal online poker bill is still just a pipe dream.
Some states have a higher chance of legalizing and regulating online poker in the near future, however. We keep close track of some of the more progressive states and try to give our readers some insight into which states could be closing in on legalization. You can take a deeper dive into your states specific laws in regards to PokerStars and all online poker laws with our state-by-state guides.
Online Poker USA Law State-by-State Guides
You can refer to the legal status of online poker in every US state here:
Alabama – Arizona – Arkansas – California – Colorado – Connecticut – Georgia – Idaho – Iowa – Kansas – Maine – Maryland – Massachusetts – Michigan – Minnesota – Mississippi – Montana – Nebraska – New Hampshire – New Mexico – North Carolina – North Dakota – Ohio – Oklahoma – Pennsylvania – Rhode Island – South Carolina – Tennessee – Vermont – West Virginia – Wyoming
The Entire History of PokerStars in the USA
PokerStars has a fascinating history in the online poker industry with a substantial portion of it taking place in the USA.
2000s
- Now a billion-dollar, publicly-traded company, PokerStars had rather humble beginnings.
- It began in the early 2000s as a Costa Rican company called Rational Enterprises that was majority-owned by Israeli-Canadian Isai Scheinberg.
- PokerStars was just one of many of the early real-money online poker operators including PartyPoker, Pacific Poker (Now 888poker) and Tropical Poker.
2003 – 2006
- PokerStars’ claim to fame came in 2003 when an accountant named Chris Moneymaker won the WSOP Main Event 2003-2006 Las Vegas after qualifying on the site.
- Moneymaker was the first player to win the Main Event after qualifying online and helped create the so-called “poker boom” of the early 2000s.
- PokerStars quickly became a favorite amongst poker players for its secure deposits, reliable support team and booming cash games.
2006 – 2011
- The poker boom was stifled early on when the US government passed the Unlawful Internet Gambling Enforcement Act of 2006 that led to publicly-traded companies like PartyPoker getting forced to leave the US market altogether.
- UIGEA had the opposite effect on PokerStars because it was a privately-held company, it remained in the US market and quickly took the reins as the most popular online poker site in the world.
2011 – 2016
- The gravy train came to an end in 2011 when the Department of Justice seized the .com addresses of three online poker sites: PokerStars, Full Tilt Poker and Absolute/UltimateBet.
- Online poker players referred to the day as “Black Friday”. It would be years before PokerStars would be allowed to re-enter the US market.
2016 – Today
- PokerStars continued to flourish on the international market and was purchased by Amaya Gaming in a massive $4.9 billion deal in 2014. Subsequently the first officially licensed online poker sites in the USA start to pop up in 2014.
- New Jersey became the first state to allow PokerStars back in 2016.
- In late 2019 Pennsylvania follows suit and allows PokerStars to officially open its doors to players in the state.
Unfortunately, many other states remain a pipe dream and it will likely be decades before PokerStars is allowed to operate in the entirety of the USA.