California Tribes Agree on Limits to Online Poker Bill

California’s gaming tribes are close to reaching an accord that would allow a bill authorizing online poker to move forward in the legislature. The big issue is a “bad actor” clause that would block PokerStars, which has reached an agreement with the Morongo Band’s Chairman Robert Martin (l.) and several card rooms.

Most of California’s Indian tribes have reached an agreement on what sort of online poker bill they will support.

Two of the largest Indian gaming tribes, the Pechanga Band of Luiseno Indians and the San Manuel Band of Serrano Mission Indians, who initially opposed such a bill, appear to be onboard, particularly after a meeting on May 27 in San Diego, when a consensus was reached, according to reports.

Two online poker bills are currently active: AB 2291, sponsored by Assemblyman Reggie Jones-Sawyer, SB 1366 sponsored by state Senator Lou Correa.

One point of disagreement had been the number of poker sites that each license holder could have. They have agreed on two poker sites. They have also agreed to lock out racetracks, whose champion, Senator Roderick Wright, is no longer a factor since his conviction on eight counts of fraud. 

Some tribes contend that allowing them to participate would violate tribal gaming exclusivity; although the tribal state gaming compacts were ratified long before internet gaming was ever on the horizon. Robert Martin, chairman of the Morongo Band of Mission Indians, does not oppose racetrack participation. Jeff Grubbe, chairman of the Agua Caliente Band of Cahuilla Indians, opposes such participation, noting that 10 years ago the state’s voters rejected allowing racetracks to expand gambling offerings.

One sticking point is whether PokerStars, which has partnered with Morongo, will be able to participate, since the bill’s current language prevents “bad actors” (not the Hollywood variety, but the kind that continued to operate poker sites in the U.S. after Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006 that banned online gambling) from participating.

Many observers believe that if PokerStars, the largest poker site in the world, based on the Isle of Man, is precluded, that Morongo will challenge that language in court. Others say that a “bad actor” clause is unnecessary, and that deciding who is eligible for a license should rest with the commissions that oversee the Golden State’s gaming.  Attorney Kevin Sharp recently noted that New Jersey, one of three states where online gaming is legal, has left such decisions to its gaming commission.