The California Assembly Committee on Governmental Organization has scheduled an April 27 hearing for an online poker bill that has been classified as an “urgency” measure.
Committee Chairman Adam Gray is also the author of the bill, which he introduced in February. A similar bill was passed by the same committee last year, but never was voted on by the full Assembly.
Significant roadblocks remain to such a bill, including opposition by one powerful wing of the tribal gaming industry that opposes participation by the state’s racetracks, and opposition to participation by PokerStars, which is a member of one of the tribal coalitions pushing legalization. That group supports a “bad actor” clause in the bill, because the former owners of PokerStars were indicted by the U.S. Justice Department for violating federal law in allowing U.S. citizens to play on offshore poker websites. The owner of PokerStars settled the case without admitting wrongdoing.
PokerStars’ chances in this regard have decreased since the former CEO of its parent company Amaya was recently charged with insider trading in Canada.
However, the PokerStars Coalition, which includes the Morongo Band of Mission Indians, the San Manuel Band of Mission Indians, the United Auburn Indian Community (UIAC), the Commerce Casino, the Hawaiian Gardens Casino, and the Bicycle Casino (the “Bike”), sent a letter to Gray supporting his bill.
The letter said, in part, “On behalf of a broad coalition of tribal governments, card clubs and online operators, we write in support of your AB 2863, your bill to protect consumers, create jobs, and strengthen our state’s economy by authorizing and regulating intrastate, Internet Poker in California. Authorizing online poker will be good for millions of consumers and poker players who will benefit from a safe, regulated, commercial gaming environment where they are protected and assured that the games are fair and honest.”
This coalition and other supporters have pushed for online poker since 2008.
In the letter they add, “After years of research and deliberation, your leadership has produced a bill with broad support from California’s Indian tribes, the larger gaming community, and internet poker players. We are optimistic that with your continued leadership and direct consultations with interested parties, this comprehensive piece of legislation can reach Governor Brown’s desk and earn his signature.”
Gray’s bill includes a very expensive bone to the racetrack industry by promising up to $60 million a year in return for the racetracks agreeing not to insist on a seat at the table.
The California internet poker market is considered to be as large as $400 million by some experts.
