California’s Governor Jerry Brown has set the parameters of what kind of internet poker bill he will sign: no bill without the racetracks.
Several gaming tribes have so far said no iPoker bill if racetracks are included. They include the Pechanga Band of Luiseno Indians of Riverside County, which says that allowing the racetracks to participate would violate established public policy and would constitute expanded gambling. They note that the voters previously voted not to allow slots at racetracks.
In a letter to the legislature these tribes wrote, “It must be noted that the voters of California have voted on multiple occasions … in support of tribal government gaming and have given overwhelming approval to a constitutional amendment granting Indian tribal governments exclusive authority over Las Vegas-style casino gaming.”
Last week Del Mar Thoroughbred Club COO Josh Rubenstein called on the legislature to make the racetracks a player, along with card clubs and gaming tribes.
Rubenstein, interviewed by Online Poker Report said that just as online poker is a natural development for tribal gaming and card clubs that it is also a logical development for the racetracks.
“The horse racing industry has exclusivity with web-based gaming in California,” he said. “It’s a big part of what we do. We’re pretty good at it.
“We’ve operated it in a regulated fashion since 2001, everything from age verification to protecting the customer’s identity and making sure transactions are completed in a very timely manner. You can make the argument racing is as qualified as anyone in this forum.”
Rubenstein argues that because gaming tribes, card clubs and racetracks all have exclusivity in their spheres that all three should be included in any online poker-licensing plan. He added that the industry refuses to simply be paid off with a subsidy instead of being allowed to participate directly.
“We’re looking for a level playing field if there’s any expansion of Internet wagering in the state,” he said.
There are four active iPoker bills in the legislature, although two of the bills, one in the Senate and the other in the Assemble are identical.
The first bill to be submitted, by Assemblyman Mike Gatto, would allow participation by tribes and card clubs only.
The identical “shell” bills by Senator Isadore Hall and Assembly Adam Gray don’t yet say which entities would be allowed to apply for licenses.
Several tribes support participation by the racetracks. The Morongo and San Manuel Bands, partners with Amaya/PokerStars, have their own reasons for wanting to prevent a lockout of any potential players since earlier versions of iPoker bills have specifically excluded Amaya/PokerStars through a “bad actor” clause.
Card rooms also don’t oppose participation by racetracks.
Many political observers believe that Pechanga has enough political clout to prevent the inclusion of racetracks. However, with the governor’s recent declaration that he won’t sign a bill that doesn’t include them, that would seem to create an impasse.
Another important factor is that iPoker, because it would be considered a finance bill, must be approved by two-thirds of both chambers of the legislature.
The racetrack industry is very vibrant in the Golden State, with tendrils in just about every Assembly and Senate District. It employs about 50,000 in racetrack and related industries. However, it has also been in decline in recent years.
Three racetracks have closed in the last five years: Hollywood Park, Fairplex Park and Bay Meadows. Del Mar, Santa Anita, Los Alamitos and Golden Gate Field have inherited some of their race days and business and seem healthy. The state ranks second in purses behind New York. Online poker could make them even healthier.
