The Obama Justice Department has upended the entire online poker debate with a recent opinion that basically limited the scope of federal laws. Now the question is whether Congress will get involved, or whether it will let the states move forward.

The gambling lobby has a message for Congress as states line up to cash in on a White House ruling that in-state online lotteries and poker won’t violate a federal Internet betting ban: Deal now or get stuck with a bad hand.

A Justice Department opinion issued before Christmas has created a now-or-never dynamic on the Hill for lawmakers and lobbyists pushing for a federal Internet poker law as state and regional officials move ahead with online gambling plans.

Come April, D.C. plans to offer online poker and blackjack. Illinois intends to be selling lottery tickets on the Web by then, too.
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“The writing is on the wall. The states are going to do this,” John Pappas, executive director of the Poker Players Alliance, told POLITICO. “The first three or four months of the year is going to be pretty important for Congress to act.”
All bets are on some key lawmakers — some backed by Las Vegas casinos — trying to do an end-run around the DOJ opinion by pre-empting it with a federal law. That could set up a showdown pitting states vs. the feds.

Supporters of a federal bill say states aren’t equipped to handle the complexities of Internet gambling, and Congress needs to step in.

State officials say that’s hogwash, and the Obama administration has already taken the wind out of the sails of a federal Internet poker bill by clearing the way for states to start setting up their own systems.

The DOJ opinion dealt states already pushing in the direction of legalization — like California and New Jersey — a couple of aces by saying a ban on intrastate Internet gambling only applies to sports betting.

That frees up those states and several others — including Iowa and Connecticut — to follow Illinois and D.C. in the coming months by passing online gambling laws during state legislative sessions. Passage in each Legislature will be complex, but state lawmakers are extra motivated in tight budget times to find new revenue streams.

Regardless of what happens, it looks like momentum is heading in the right direction. Poker is clearly a game of skill, so policy makers need to concede that point and come up with a logical system.