The California state Senate two weeks ago passed a bill that, if adopted by the House, could possibly increases taxes and tack on new regulations to some gambling activities.
It would authorize the creation of a committee with members from the gaming industry and the public to determine whether existing regulations help or hurt the growth of the economy. The panel would also scrutinize whether card clubs should have taxes increased on them. The panel would have no authority to look at Indian gaming, which is generally not under the jurisdiction of state law.
Gaming critics immediately issued statements claiming that the committee’s real purpose is to open the state to more gambling. California Coalition Against Gambling Expansion declared, “SB 601 should be amended to require a balanced look at the laws and regulations governing gambling, including not only their impeding effect on the industry, but the social and economic costs inevitably related to gambling expansion among California families and communities—e.g., increased debts, foreclosures and bankruptcies, divorces, suicides, etc.”
The Golden State has several gaming bills that are being discussed in both chambers, including an internet poker bill sponsored by Senator Lou Correa. However, the cause of online poker recently suffered a major hit when one of its champions, Rod Wright, was convicted of eight felony counts connected with not living in the district he represents.
The three senators wrote: “The fact remains that felony convictions have been handed down from a jury upon a member of the Senate. Whether an appeal is granted by a judge or not is irrelevant to the fact that a vote of this body should be granted by leadership and/or a forthright effort to the Senator requesting his resignation.”
He had sponsored SB 51 the “Internet Gambling Consumer Protection and Public-Private Partnership Act of 2013.” State law does not require Wright, a Democrat, to resign from the Senate, but three Republican members of the Senate are pushing for a vote to force him out.
That may not happen, but Wright has been removed as chairman of the Senate Governmental Organization Committee, the base from which he pushed for online gaming in the Golden State for several years.
Some political observers say that the momentum for some sort of online gaming law is strong enough to survive Wright’s removal from power.
Meanwhile Wright plans to appeal the conviction. Senate Leader Darrell Steinberg wants to wait until the final resolution of the case before expelling Wright.
