I was torn between the first two options, because I think both might happen.
I would imagine that in PA, you're going to have both happening. Out-of-Staters who qualified through a big event are going to be tempted to come here for big money (no whammies), while an in-state PA person might go cross-border to a neighboring state like DE, NJ, or WV with a smaller pool but an easier shot at Finals (if that's what they're chasing).
Another item in the consideration of cross-state players would be which states (of the 6%) is this currently happening in? My hypothesis is that this is happening more in the Northeastern states where it's a lot easier during the year to go across state lines to not only play in the events during the year but to head to wherever the Finals are. In Southeast PA, it would actually take me longer to go cross-state to Pittsburgh than for me to go to get to wherever the finals are in NJ, MD, DE, CT, MD, and probably VA and sometimes NY (depending on if it's NYC or Buffalo). If I had the luxury of having multiple states to choose from, I'd put consideration into distance, potential opponents, prize money, how much fun I think I would have, and the interplay of all those things before choosing.