For the third year, the California Legislature will debate whether to legalize online poker in the state as two groups have introduced bills on internet gaming.
Senator Lou Correa is the author of one of the new bills, which is backed by a coalition including the San Manuel Band of Serrano Mission Indians, the United Auburn Community, and the Rincon Band of Luiseño Indians.
Another bill has been introduced by Assemblymen Reggie Jones-Sawyer and has the support of the Pechanga Band of Luiseño Indians, the Agua Caliente Band of Cahuilla Indians, and the Yocha Dehe Wintun Nation.
Both bills legalize only online poker only and would require that all players be physically located within the state’s boundaries.
Previous attempts to legalize online poker in the state have been opposed by many tribal communities worried that online games would hurt land-based casinos and concerned that a state law would impose on their tribal sovereignty. There have also been disagreements over licensing and the amount of games allowed.
According to Lexology.com, both bills limit operator licensing to federally-recognized California tribes that have conducted on-premises casino gaming under the Indian Gaming Regulatory Act for a minimum period of time or licensed card rooms that are in good standing with the California Gambling Control Commission. Both bills also exclude racetracks and advance deposit wagering providers that were included as potential licensees in previous legislation.
The two bills do have several differences over licensing procedures and the naming of “bad actors”—companies that cannot be licensed because of past indiscretions—but reports say legislators may have a better chance of reaching compromises this time out. One bill specifically bans them, while the other leaves the matter to the discretion of the tribal and state regulators.
That became important last week when published reports said that PokerStars is in partnership negotiations with the Morongo Band of Mission Indians and three large Southern California Card Clubs to offer online poker in California, including the Commerce Club and the Bicycle Club (the Bike).
PokerStars license application for the New Jersey’s online gambling market was suspended due to concerns stemming from its problems with the U.S. Department of Justice’s move in 2011 to shutdown offshore online gambling sites operating illegally in the U.S. The company was charged with numerous violations, which it settled by a $700 million-plus payment. But its former Chairman Isai Steinberg is still at large and charged with similar crimes, while his son Mark Scheinberg remains company chairman.
A statement from the California Tribal Business Alliance, which represents several California tribes, says that “only entities that adhere to the highest regulatory standards, such as those used in the regulation of Indian gaming, should be licensed to provide online play.”
“We will strongly oppose any legislation which allows PokerStars to participate,” Leslie Lohse, alliance chairwoman said in a statement.
PokerStars continued to accept wagers from U.S. players after the 2006 Unlawful Internet Gambling Enforcement Act made online gambling illegal, the statement noted.
The Department of Justice issued orders mandating the site close down, filed a civil action to seize the company’s assets acquired post-UIGEA, and threatened imprisonment alleging, among other things, conspiracy, money laundering, bank fraud and violations of the Wire Act. In settlement, they paid a $731 million fine, but admitted no wrongdoing.
