California: one month to save egaming future
Legislative session ends on 31 August " discussions between tribes and bill's sponsors continue.
California’s hopes of joining Nevada and Delaware as the only states to pass online gambling legislation rest on just one month of negotiations, as politicians and stakeholders continue to work towards a deal.
Since online poker bill SB 1463 was dramatically pulled from the Senate Governmental Organisation Committee by its primary sponsor Senator Rod Wright in June, talks have continued behind the scenes “ and many feel that progress is being made.
But with just 31 days to go, time is running out. If the legislature is to pass an internet poker bill, acceptable amendments need to be filed before the Senate reconvenes on August 6. Wright will then have 20 days to move SB 1463 before the legislature adjourns.
Tribal leaders have been critical of Wright in recent months, claiming he has not been flexible enough in negotiations. Among other sticking points, the Senator has been steadfast in his opinion that Advance Deposit Wagering firms should be eligible to apply for an online poker licence, a provision which Michael Lombardi, the chairman of the Augustine Gaming Commission, calls a “deal killer”.
Wright has, however, shown signs of giving in to tribal demands, having already made amendments to make the bill poker-only and removing a clause which would have obliged tribes to waive their sovereignty to hold an online poker licence.
“My sense is that the author and major stakeholders are very close to an acceptable bill,” said Lombardi. “The resolution of as few as half-a-dozen issues could clear the way for a bill acceptable to most of the tribes and card rooms.”
The bill currently being considered “ co-sponsored by Senator Darrell Steinberg “ has faced stiff opposition during its journey through the state’s legislature. California tribal groups have stood firm in their stance that the bill, in its current form, compromises their sovereignty and fails to protect their existing land-based businesses.
The California Online Poker Association (COPA) remains a significant opponent, as do large tribes such as Pechanga and Morongo. Others have declared their support for online poker regulation, including the United Auburn Indian Community, which signed a 10-year B2B online poker deal with bwin.party.
Hopes were raised of its progress in June when an amended version of the bill was set to go before a Senate Governmental Organisation Committee, however it was removed from the agenda at the last minute by Wright, who later said it lacked the necessary support to pass.
In an opinion piece for eGaming Review North America in April, former California Assemblyman Lloyd Levine said the failure of California to pass online gambling legislation could lead to the state “never catching up”.
“California is the last chance for the rest of the country to have any legitimate chance to stop Nevada from dominating the internet gaming space in the US market,” he wrote. “The legislative session in California ends on 31 August this year. If they have not passed legislation by that date they will have to start over again next year. By that time they will likely have given the Nevada casinos to big a head start to catch up.”