Future of Online Poker in California Remains Murky

Attendees last week at a symposium devoted to online gaming in California are no more enlightened about whether online poker will be passed by the legislature than they were before. Assemblyman Adam Gray (l.) will control the iPoker legislation in his house.

The iGaming Legislative Symposium held last week in Sacramento gave few clues as to whether iPoker will actually be legalized by the California legislature.

The keynote address was given by Assemblyman Mike Gatto, who introduced the first such bill (AB 9) at the beginning of 2015. He told the audience that originally he felt that a bill’s passage had a 50:50 chance. Now he thinks the odds of passage are about 35 percent.

He blamed the various interest groups, dominated by gaming tribes, but including card clubs and even racetracks, for refusing to compromise enough for a bill to garner enough votes.

He said the intransigence of the major players has led some lawmakers to wonder, “Why do I even want to vote for this bill?”

The bill, he said, is not especially interesting to most residents, so politicians are also not excited by it. He said he has received very few emails from constituents about the issue from over 57,000 emails he received last year.

One group consists of the Morongo and San Manuel tribes, several card clubs, including the Bicycle, Commerce Club and Hawaiian Gardens, and Amaya/PokerStars. They oppose any language that would exclude “bad actors.”

Another group includes the Rincon Band of Luiseño Indians, United Auburn Indian Community and Pala Band of Mission Indians and about twenty card rooms. They favor a “bad actor” clause.

A third group includes the Pechanga Band of Luiseño Indians, Agua Caliente Band of Cahuilla Indians, Viejas Band of Kumeyaay Indians, Barona Band of Mission Indians, Yocha Dehe Wintun Nation, Sycuan Band of the Kumeyaay Nation and Lytton Band of Pomo Indians. They want to exclude racetracks.

During the symposium, Steve Bodmer, attorney for the Pechanga Band of Luiseño Indians tribe said the tribe—although it supports Gatto’s “bad actor” clause that could prevent PokerStars from participating—is more concerned about preventing racetracks from getting into the game.

You can’t play poker at a racetrack, he observed. Allowing this expansion of “non-Indian” gaming would violate the state tribal gaming compacts, he argues.

Racetrack lobbyist Robyn Black didn’t buy this line of reasoning, asserting that iPoker is a new form of gaming and that all entities now engaged in gaming have a right to be included. The racing industry’s support may be needed to pass such a bill, said Black.

Estimates are that seven gaming tribes remain rock solid in their opposition to racetracks as well as to PokerStars.

At the same time, Assemblyman Adam Gray and Senator Isadore Hall, chairmen of the Government Organization committees of their respective chambers, have introduced what is known as “shell bills,” that would give them control of the bills. That doesn’t necessarily mean they support online poker, just that they want to control the bills, say Sacramento insiders, including Gatto.

However, Keith Sharp, who represents several of the largest card rooms, commented, “This is the first time we’ve had both GO chairs step up and say, ‘We are taking control of the issue.’ ” He added, “I think this has sort of suggested there’s a new-found momentum.”

Haig Kelegian, owner of the Bicycle Casino, sees online poker less as a big moneymaker then a way to bring new customers to real, as opposed to virtual, casinos.

Others seconded the motion that online poker is not as enticing as it was a decade ago. They doubt that it will bring much money into the state’s coffers.

Meanwhile billionaire casino mogul Sheldon Adelson continues to push the Restoration of America’s Wire Act (RAWA) that would make intrastate gaming illegal.

Some state lotteries are negotiating with federal lawmakers to try to get an exception made for them.