The California Assembly recently held hearings on two proposals, one from the Assembly and the other from the Senate, to legalize online poker as polls indicated that most voters favor legalization of a game that has always been popular in the Golden State in all of its forms.
The Assembly Governmental Organization Committee, chaired by Isadore Hall, heard from union members, lobbyists, tribal interests, card rooms, racetracks, and gaming opponents. Former U.S. House Minority Leader Dick Gephardt represented PokerStars, whose possible participation in online gaming is considered problematic by many because of its issues with the federal Justice Department over unauthorized internet gaming, an issue over which it agreed to pay $731 million to avoid prosecution.
During the hearing PokerStars announced that it has formed a consortium with the Morongo Band of Mission Indians and three Southern California card rooms: the Bicycle, the Commerce Club and Hawaiian Gardens Casino.
PokerStars is the target of the inclusion in both of the bills of a “bad actor clause” that would elbow out anyone who has fallen afoul of federal law, as PokerStars did. Twelve gaming tribes recently announced their support for the clause and their opposition to taking it out.
Most of the opposition to PokerStars has less to do with wanting the game to remain pristine as it does to keeping a potentially unstoppable competitor out.
The state’s racetracks, however, appear to be left out of any possible deals.
The assembly is considering two bills that would make California the fourth state to legalize online gaming. Tulchin Research asked residents two questions. One polled those who had no information about the bills and found that 62 percent supported legalization while 28 percent opposed. Then they surveyed persons who had been educated about how the state might benefit from online poker, and saw support go to 68 percent in favor and 27 percent against.
Incoming Senate President Pro Tem Kevin de Leon recently predicted that an internet poker deal could be reached by August.
California’s 38 million residents would be the largest pool of online poker players in the country. Online poker is seen by some in the industry as a way to rev up revenues in existing brick and mortar casinos, as has been shown by the 60 percent increase in the Borgata Casino’s poker profits since online poker was introduced there.
The California legislature hopes to get a bill passed before Congress is able to unify and pass a federal version.
