New Pechanga-backed California bill circulated
Legislation would include 'bad actor' clause and exclude racetracks from applying for a licence
A new draft bill to legalise online poker in California has been sent to tribal leaders and is backed by eight tribes including Pechanga, Agua Caliente and Borona.
The draft legislation proposes tribes and card rooms that have held approval to operate land-based businesses for at least five years can apply for 10-year online licences. The bill also calls for a ‘bad actor’ clause to block any operator that continued to operate in the States after the passage of UIGEA in 2006, and excludes racetracks from applying for a licence.
A source close to the matter told eGR the draft bill was finalised on Monday this week following months of talks. He also said the legislation remains a work in progress, with no sponsor on board and finer details such as a rate of taxation and licence fee yet to confirmed.
The new proposed California legislature offers no time period for allowing companies who took bets post-UIGEA into the market, deeming them “unsuitable for any licence under this bill”. While New Jersey’s legislation removed such a provision in December last year, a similar clause was added to Nevada’s egaming laws in February, excluding operators taking bets after UIGEA for five years.
Unlike the bills put forward by Wright and Correa, the legislation would not accept applications from racetracks. While this measure will be popular with tribes, it is likely to lead to criticism from racing entities and Wright, who serves as chairman of the Senate Governmental Organisation Committee where any egaming bill introduced would face a hearing.
There are now three bills in contention in California, including one proposed by Senator Rod Wright. An eGR source revealed the San Manuel tribe was involved in initial discussions for the new bill, but dropped out to back the legislation sponsored by Senator Lou Correa.
Similar to Correa’s bill, but unlike Wright’s, this new bill would also allow tribes to retain their sovereignty while applying for a licence.
The bill would enforce a go-live date of 1 January 2015, with the California Gambling Control Commission required to release egaming regulations within 270 days of the bill’s passage. Once a tribe has submitted its licence application, the Commission would have 90 days to review it.
The other tribes supporting the bill are the Yocha Dehe Wintun Nation, Lytton Band of Pomo Indians, Pala Band of Mission Indians, Paskenta Band of Nomlaki Indians and Viejas Band of Kumeyaay Indians.
It had been rumoured Pechanga, whose chairman is Mark Macarro (pictured), would seek to introduce its own legislation rather than back Correa’s.
The legislation also includes measures ensuring tribes ensure player identity and location verification, segregated accounts for customer funds and the prohibition of bots.