California’s legislature is nearing the end of its 2016 session with no iPoker bill passed, but a slight chance of one passing at the last minute.
Amaya/PokerStars and its fellow coalition members are stoutly resisting a version of the bill that would include a “bad actor” section that would prevent PokerStars from participating in online poker for five years. This is considered proper punishment for continuing to operate in the American online poker market after the U.S. Justice Department adopted the posture that such games violated the federal Unlawful Internet Gambling Enforcement Act of 2006. It revised that opinion in 2011.
That Assemblyman Adam Gray, sponsor of AB 2863, included a provision punishing PokerStars for five years is considered a compromise between its partners, who wanted no such punishment and the Pechanga coalition, which had demanded ten years and payment of a $60 million fine.
A five-year penalty would be similar to what Nevada regulators slapped PokerStars with.
So far, none of the stakeholders have seen a revised and printed bill.
Political observers calculate that the consensus of about 12 of the largest gaming tribes are required to pass the bill, which needs a two-thirds majority in the legislature because it deals with a financial issue.
PokerStars and its allies, which include the Morongo and San Manuel Mission Indians and the three largest Southern California card rooms, remains unalterable opposed to the new language.
Agua Caliente Chairman Jeff Grubbe calls the suggestion that PokerStars be allowed to enter the market with the payment of $20 million a “get out of jail free card.”
The members of the Pechanga coalition, which once saw the sobriquet “obstructionists” applied to them for opposing a bill that didn’t include a “bad actor” clause, appear to be grimly satisfied to turn the tables on the coalition that includes PokerStars. A bill could have been concluded several years ago if that demand hadn’t been there, they say.
There is a third coalition, which has been dubbed the Coalition of the Willing and includes a grab bag of interests, such as the horse racing industry, labor unions, and several tribes that just want to see a bill passed. They include Rincon Band of Luiseno Indians, Pala Band of Mission Indians, United Auburn Indian Community, North Fork Rancheria of Mono Indians, Sycuan Band of Kumeyaay Indians, and a large handful of some of the medium size card clubs.
The Assembly and Senate adjourn August 31. Any deals to meet that deadline must be agreed to very soon.
Senate Pro Tem Kevin de Leon said recently that he is “not in a rush” to approve either iPoker or daily fantasy sports legislation.
However, the bill has a slight chance of success in the Senate if the Assembly approves it. According to a source quoted by Online Poker Report: “The assessment is if the bill gets out of the Assembly, it’s pretty much cooked. There would be a lot of momentum for moving it out of the Senate as well.”
However that is seen as unlikely if the card room PokerStars coalition continues to stand firm.
Gray’s office last week was predicting that the bill would be brought to the floor first on Monday and then Thursday. Both days came and went without action.
The deadline to pass a deal is quickly approaching since August 19 is the deadline for amending bills.
