California poker bill makes “landmark” progress

 AB 28630 receives unanimous committee stage support but tribal opposition threatens further progress

 

A bill to legalise online poker in the state of California has passed the committee stage by a unanimous 18-0 vote, reigniting hope of a much sought-after regulated market.

The bill – AB 2863 – seeks to authorise the operation of poker websites within California’s borders with regulation from the California Gambling Control Commission and the California Department of Justice.

The bill will now be sent to the full Assembly, where it must be passed by a by a two-thirds majority to reach the Senate, although the timeline for this process is still unclear.

“The question of how to regulate iPoker has been in front of the Legislature for nearly a decade,” said Assemblymember Adam Gray, the sponsor of the bill.

“We have not rushed this process. We have taken the time necessary to thoroughly understand and respond to the concerns put forth by stakeholders. Through this process, we have created a coalition that is willing to acknowledge the problem and support a comprehensive solution.”

This is the second year in a row that an online poker bill has passed the committee phase, but last year’s version was considered to be a ‘shell’ with no actual regulatory language.

Influential support for the bill comes from the San Manuel, Morongo coalition, made up of PokerStars-owner Amaya, the two eponymous tribes and California’s three largest card clubs.

“After eight years of analysis and discussion, today’s landmark vote marks the strongest step forward by California to create a regulated iPoker market that establishes vital consumer protections,” Morongo tribal chairman Robert Martin said.

“It is clear that Assembleymember Gray’s bill presents a new and promising approach and we’re hopeful we will see an iPoker bill signed this year,” he added.

The Rincon tribe also expressed an expectation that the bill would be passed within the year.

AB 2863 had previously faced staunch opposition from the horseracing industry and other tribal gaming organisations who have chosen to fight internet gaming rather than align themselves with international operators like Amaya.

However, representatives from the racing industry spoke in support of the bill after it was announced that they would receive a $60m subsidy if they did not compete in the online poker market. It is still in question whether the California poker market would actually have the scale to pay such a subsidy.

By contrast, the Pechanga and Agua Caliente tribes held their stance that “bad actors” – namely PokerStars – should not be allowed back into the market after previously flouting UIGEA.

David Licht, the CEO of the All American Poker Network, told EGR it was unlikely the bill would pass the full Assembly and the Senate without support from all of the tribes.

Gray acknowledged that tribal resistance remained the last major barrier to the passage of the bill but pledged to continue negotiations, claiming that he was discussing the bad-actor provision with stakeholders “every two weeks”.

“We know unequivocally that Californians are playing these games online every single day on websites that provide zero consumer protections,” Gray said.

“While we still have more work to do, I am confident that this legislation and this method can serve as a model for the rest of the nation. California needs a strong law that puts a stop to illegal online gambling, and that is what we have crafted.”

California would become the fourth state to legalise online poker in the US, after New Jersey, Nevada and Delaware.