Online gambling firm PokerStars has issued a statement denying it is working to squash any “bad actor” language in a proposed California bill to legalize online poker.
News reports had PokerStars in negotiations to partner with the Morongo Band of Mission Indians, a California tribe that operates the Morongo Casino Resort in Cabazon, to try and enter the California market.
However, the California Tribal Business Alliance has pledged to block any legislation that doesn’t have a “bad actor” clause, which would essentially shut PokerStars out of the market thanks to its sketchy history stemming from its shutdown in the U.S. by the U.S. Department of Justice in April 2011.
The company said in a statement that it “shares the belief that a future licensing framework for online poker in California should be based upon the highest standards of suitability that maximize consumer protection and consumer choice. We have consistently met those standards in jurisdictions around the world, where we hold 11 licenses—more than any other company, including licenses in leading European jurisdictions such as Italy, France and Spain.”
The company says it “has not, will not and need not request any changes to the California gaming regulations.”
The statement says that many other jurisdictions that have online gaming—such as New Jersey—have moved forward on online gambling without a bad-actor clause, leaving such determinations to its regulators. The California Gambling Control Commission has a 15-year history of successful consumer protection and is more than qualified to continue to determine suitability, the company said
New Jersey regulators have blocked PokerStars from entering the state’s online market until now, but not banned them completely.
Still PokerStars says its opponents are trying to block them from the state to stifle competition.
“The only parties seeking to change this are certain groups who want to use the legislature to gain a competitive market advantage and to limit competition. Their efforts are not in the best interest of consumer choice or consumer protection.”
The company then reiterated its opinion that it was never illegally operating in the U.S. under federal law. Though the company entered into a settlement with the DOJ, and there are still pending indictments against some executives, it has never admitted to any wrongdoing.
“PokerStars looks forward to demonstrating our suitability to the regulator just like any other company seeking to operate in California and investing in a fair and well-regulated market,” the statement said.
There are currently two bills that could legalize online poker in California.
Leslie Lohse, the treasurer of the Paskenta Band of Nomlaki Indians and Chairwoman of the California Tribal Business Alliance issued a statement saying that they “will strongly oppose any legislation which allows PokerStars to participate.”
Meanwhile, Attorney Keith Sharp, who represents Commerce Casino, Hawaiian Gardens and Bicycle Club—three Los Angeles-area card rooms who have joined the Morongo Band of Mission Indians in partnership negotiations with PokerStars—told PokerNews that his clients will continue those discussions despite the controversy.
