New York and California seemed on their way to adopting online poke legislation, but both efforts now seem to be slowed.
In New York, state Assemblymen Gary Pretlow—speaking at the iGaming North America Conference—said he doubts his bill to legalize online poker in the state can pass in 2016. Pretlow’s bill has been approved by a state Senate committee, but he still feels that concerns about protecting minors will delay the bill in the state.
“On the other hand with online poker, there are some issues there and we’re not really prepared to introduce legislation that’s going to go to the floor for a vote, so you’re looking at a 100-to-one shot to hit the floor,” Pretlow said during a panel discussion at the conference.
Pretlow, however, did say he is optimistic that a bill to regulate daily fantasy sports sites in the state will be passed this year. The New York Attorney General has sued to block DraftKings and FanDuel—the two largest DFS operators—from running games in the state. The sites have agreed to stop taking entries, partially to allow the state Legislature to address a bill.
In California, reports have surfaced that allegations of insider trading filed by Canadian regulators against Amaya CEO David Baazov have reignited a debate in that state about including a “bad actor” clause into any online poker legislation.
The charges against Baazov partially cover Amaya’s $4.9 billion of PokerStars in 2014.
According to Online Poker News, a coalition of tribes fronted by Pechanga continue to lobby for the “bad actor” clause. “The clause would bar sites like PokerStars—which had trouble with the U.S. department of Justice in 2011—from operating in the state.
Opponents of the clause felt it was designed to specifically keep PokerStars out of the state, but the acquisition by Amaya was seen to clean house of former executives involved in the 2011 dispute. PokerStars was even approved to begin online play in New Jersey, which launched in March.
But the charge against Baazov again cloud the company, though Baazov has said he is innocent and vowed to fight the charges.
According to Online Poker Report, at least one of the tribes partnered with PokerStars in the state has voiced concerns over the Baazov charges, but there is no word yet on a possible falling out among the parties in the PokerStars coalition pushing for the legislation. The coalition includes several tribes and three California card clubs.
However, Steve Stallings, chairman of California Nations Indian Gaming Association (CNIGA), predicts that iPoker legislation introduced earlier this year by Assemblyman Adam Gray is “set to move ahead.”
He is optimistic about a bill being adopted. Complicating the possible participation by PokerStars are recent insider trading charges against Baazov, the former chief executive officer of Amaya Gaming, PokerStars’s parent company.
Stallings said that the accusations against Baazov raises, “if not red flags, caution flags. It does raise issues of corporate governance.” He added, “The resurgence of poker as a viable online game depends on California. One more hurdle from PokerStars does make it more difficult.”
The legislature has only once brought an online poker bill to a vote: last April, when another of Gray’s bill was advanced from committee to the floor.
Gray’s bill includes a provision paying up to $60 million a year to racetracks, as a consolation for not being allowed to play at the table.
California is considered to be the prime market for online poker. It is the number one tribal gaming state, with $7.3 billion in gaming revenue in 2014, which accounts for one fourth of all Indian gaming revenue in the U.S.
Stallings believes that there is room in the state for up to 10 unique online poker operators.
