Online Poker in California Likely to Hit Muck all Over Again

August 10, 2012

California has been attempting to make online poker legal since 2007. Recent reports state that the state’s attempt this year too, will probably not meet any success.

About the bill

Darrell Steinberg, this years’ Internet poker bill’s co-sponsor stated that the efforts to legalize online poker will probably not be fruitful before the 31st of August, which is the legislative deadline. The internet poker bill this year can be identified as SB 1463 and is not the first one to fail being passed.

The bill was brought about by Steinberg and one of his colleagues, Senator Rod Wright. They introduced the bill towards the end of February and have realized it is witnessing minimal activity since its introduction. The bill hasn’t even had a hearing even though one was scheduled for the 12th of June. Owing to a request by Wright the hearing was cancelled.

Opinions from the industry

The California Tribal Business Alliance has probably been the most open critic when it comes to recent attempts. The alliance welcomes the idea of online gaming and certain tribes in California are even supporting the current bill. But this support holds good only as long as it has amendments to protect the state of California from interests that are shown for sources out-of-state. 31 card rooms and 29 tribes are a part of the California Online Poker Association, which recently stated it doesn’t want any further delays in the bill.

Support and opposition

The bill is facing opposition because of several reasons, one of the main ones being not all online poker companies will be able to get licensed. $30 million will have to be paid as a one-time fee. This fee will then be credited toward a tax of 10 percent that is charged on gross online poker revenue.

Although several people are opposing the bill, some supporters of it have already made arrangements for funds in case there is success in the future regarding the passing of the bill. In the beginning of May, Bwin.party Digital Entertainment a UK based company agreed to become partners with the United Auburn Indian Community in California. PartyPoker is a famous online casino run by Bwin.party.

The deadline of California that is approaching is coming not so long after Cantor Gaming and Horse Racing United, a bookmaker from Nevada, which is a coalition ofNevada’s horse racing businesses closed a deal. The deal announced that Cantor will give the group technology needed for a poker site that can operate intrastate. Cantor also plans on Nevada internet poker.

California boasts of a population of 37.7 million residents and is quite an attractive partner forNevada, the Silver State.Nevada could probably start its very own intrastate industry as early as this September.

Rumors are stating that the state of California would probably chose to go solo in legalizing the online poker business, if it manages to do so to begin with.