New Tourism Argument Emerges For iPoker

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Friday, May 27th, 2016 | Written by Adam Brown

A number of states are currently considering legalizing online poker, with the pro arguments usually focussing on the potential revenues that could be generated for state governments in the form of licensing fees and gross gaming taxes. Recently, however, John Pappas, the director of the Poker Players Alliance has been making a brand new, compelling case for iPoker legalization–tourism dollars.

Poker Tourism and Online Poker

At a hearing held by the Michigan Senate Regulatory Reform Committee, Pappas (photo) pointed out that the state could potentially bring in tourism dollars by being a center for poker post-regulation. He explained that once casinos team up with online poker operators, cross promotion becomes commonplace. The casinos use their online poker sites to drive business through their doors. One way that this is done is by hosting poker tournaments, and often, these events are funded by online poker operators. As Pappas then explained in his testimony:

“Online poker will also be a unique driver for tourism in Michigan. The coupling of the online game with the state’s tribal and state-licensed poker offerings will make Michigan the mid-west center for regulated poker. It will bring first class poker tournaments to the state drawing players from all over the country and even the world. This type of “Poker Tourism” will fill hotel rooms and restaurants and can be strategically planned to enhance commerce during times of the year when traditional tourism is off its peak.”

NJ a Prime Example

One only needs to look to New Jersey to see an example of how this works. During just the first few months of this year, several tournaments have been held in New Jersey casinos and were sponsored by online poker sites. PokerStars featured one event in May at its land-based partner’s venue, the Resorts Casino Hotel in Atlantic City, with its ‘Run It Up: Resorts Rumble’ series hosted by the popular PokerStars sponsored pro Jason Somerville.
Another series, the Americas Cup of Poker final, will also be hosted at the same casino in June.

The state of New Jersey was chosen because of its gaming-friendly laws, and the interest it has shown in poker over the years. Other states that are currently considering gambling legislation like Michigan, Pennsylvania, New York and California could also end up hosting such events and raking in poker tourism dollars in the future.

How Poker Tourism Generates Revenue

Poker tourism is the term given for all of the money that is generated by players traveling to a location to attend tournaments. To calculate total poker tourism dollars, experts take into account:

– Money spent on hotel accommodations by out of town players who travel to the location of the tournament to compete or observe.

– Money spent at restaurants and bars by people in town for tournaments and locals who come to the events.

– Money spent on retail purchases at local merchants while they are in town for tournaments.

– Gaming revenue generated by players and people who travel with them to the tournament.

– Money earned by workers who are called on to work extra hours at the casino or at local businesses that will be providing services, food or retail products to people in town for the tournament

– Money spent on entertainment like live events held at casinos and local venues while the tournament is underway

Conclusion

When you consider all of the various types of spending that contribute to poker tourism revenue, it’s easy to see how profitable tournaments can be for communities where casinos are located. This also benefits the state as businesses that are more profitable will end up paying higher business taxes and collecting more state sales tax from customers and clients. Only time will tell, though, if lawmakers can see things from Pappas’ perspective and feel motivated to legalize online poker as a result.

In the meanwhile, Reno in Nevada provides another good example of the benefits poker tourism can provide for a locale, and this week the city is playing host to “Run it up Reno”. Jason Somerville will be present at the live tournament event, and will also be broadcasting his popular live twitch tournament feed during its week long schedule. Reno has already experienced a bump in tourism in anticipation of the series, and as Peppermill poker room manager, Mike Nelson, commented recently:

“We have players here from Germany, the UK, South America. This is truly an international event. And people are shocked that its in Reno but we want people to know about the options they have in Reno, Nevada.”