If you’re optimistic, you consider the legalization of online gaming in Pennsylvania a pivotal moment in US online gaming history. The state is a linchpin that will lead to a domino effect in other states.

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If you’re a pessimist, Pennsylvania is simply the first state since 2013 to legalize online gambling. Plus, it only did so to plug a sizable hole in its budget.

The reality is somewhere in between.

In the end, it’s all about the money

For all the talk about consumer protections, there are really only two reasons states are turning to online gaming:

As a source of revenue for the state.
To strengthen their existing gaming establishments and/or lottery.

Everything else is pretty much window dressing. Unless a state needs revenue, or its current gaming is on the decline, it’s unlikely to turn to online gaming expansion. That is, unless lawmakers can sneak it through under the radar, which will be a common refrain in the analysis below.

How Pennsylvania helps other states move the needle

Multiple states were already considering online gaming bills. The incremental progress made in 2017 should entice some new states to take a look at online gaming. Hopefully is pushes some of the current candidates across the finish line.

Here’s why:

Pennsylvania is the first state since 2013, and the first significant “non-gaming” state to legalize online gaming.
Online gambling is becoming normalized. In addition to four states with legal online gambling, this year New Hampshire and Pennsylvania legalized online lottery, and eight states legalized daily fantasy sport (DFS), bringing the total up to six and 18, respectively.
The recently signed agreement between New Jersey, Nevada, and Delaware to pool online poker players increases the appeal of online poker, and opens the door for smaller states that may have been concerned about a lack of liquidity.

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Ranking the top five contenders

All five of these states have at least a puncher’s chance to legalize online gaming in 2018.

#5: New Hampshire

The little state of New Hampshire snuck into the online gaming conversation in 2017, and it did so in a big way.

The Granite State introduced separate legislation to legalize both online lottery and online gambling in 2017. Despite being its first crack at either, online lottery was authorized, but the state came up short on the online gaming front.

Expect New Hampshire to take another crack at online gaming in 2018, but also expect more roadblocks and pitfalls next year.

Lawmakers will have the convenient excuse of, “we just expanded online lottery and keno games last year.”
2018 is an election year.
One of the bill’s sponsors is facing criminal charges.
The bill won’t “sneak up” on the legislature next year, as online lottery did this year.

#4: Connecticut

Connecticut’s two tribal casinos (Foxwoods and Mohegan Sun) are dealing with casino expansion in neighboring states. Moreover, the eye of the storm has yet to make landfall.

The billion-dollar MGM Springfield will open its doors in less than a year. Nine months later, the $2.4 billion Wynn Boston Harbor will follow suit.

Both properties are expected to take a big chunk out of Foxwoods and Mohegan Sun.

Foxwoods and Mohegan Sun are trying to counteract their new competition in several different ways:

Connecticut preauthorized sports betting.
The state approved a joint satellite casino by the two tribes.
Both properties are adding to their non-gaming offerings.

But at some point the two casinos are going to have to turn to online gaming; a proven source of incremental revenue.

One thing holding Connecticut back has been the size of the state. With just 3.5 million residents, Connecticut doesn’t have the population base for online poker… unless there is a thriving interstate market it can join.

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With New Jersey joining Nevada and Delaware, and Pennsylvania likely to follow, both online casino and online poker are suddenly on the table in Connecticut.

Working against the state is the significant gaming expansions the legislature approved this year.

After legalizing DFS, sports betting, and approving a satellite casino, lawmakers may want a break from gaming in 2018, which also happens to be the dreaded election year.

#3: West Virginia

Like Connecticut, West Virginia’s racinos have been feeling the squeeze from new casinos in neighboring states for a number of years.

Now that it’s northern neighbor has joined two other states in the region as online gaming states, West Virginia has even more pressure to throw a lifeline to its land-based gaming operators.

West Virginia introduced an online gaming bill in 2017. Additionally, it has been looking into online lottery and gaming dating back to 2014.

With the developments in Pennsylvania and the opportunity to enter into an interstate agreements (offsetting the state’s small population of 1.8 million), West Virginia’s chances of passing online gaming legislation in 2018 just went up.

#2: Illinois

Despite a solid late effort, Illinois’ online gaming hopes were officially dashed this week, but the state should be one of the top contenders in 2018, as the bills will carry over to next year’s session.

Like Pennsylvania, Illinois needs revenue; the kind of revenue that hefty online gaming l

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