New California bill paves way for PokerStars
Online poker legislation softens 'bad actor' clause and is the first to make the state's racetracks eligible for licensure
A second online poker bill in as many months has been introduced in California, featuring a softened ‘bad actor’ clause which appears to pave the way for PokerStars to enter the market.
The Internet Poker Consumer Protection Act of 2015 was introduced by Assemblyman Reggie Jones-Sawyer yesterday (Thursday), and is also the first to make the state’s racetracks eligible for an online poker licence.
It comes a month after Assemblyman Mike Gatto introduced the first online poker bill of the 2015 legislative session in December. Both bills exclude any other form of online gambling.
The bill, seen by eGaming Review, sets licence fees at $10m with applicants having to prove they can afford the sum “through their own net position” or “credit directly to them”.
Licences would last for four-year terms, with applicants having to pay an annual fee to the state regulator. Tax rates would be set at 8.5% of gross gaming revenue.
Under the bill, tribes, card rooms and racetracks would be able to run up to two poker sites or skins, and there appears to be no language blocking the state from entering compacts with other regulated jurisdictions.
Jones-Sawyer, who introduced similar legislation last year, said it was “absolutely essential” that California has a “proper regulatory structure” in place.
“We have reached a new starting point. The dialogue over the last year has allowed us to reach even broader consensus and mutual agreement as to who will be able to participate in providing internet poker to our citizens.
“My goal of setting a standard in California that is a shining example for the entire nation remains unchanged,” he added.
On the face of it Jones-Sawyer’s latest bill is a massive step forwards as it tackles two of biggest hurdles to progress to date – the role of racetracks and the ‘bad actor’ clause which appeared in previous bills and blocked any firms who continued to accept bets post-UIGEA.
But the battle looks far from over after chairman of the powerful Pechanga tribe Mark Macarro said there was “much for tribes to dislike” about the bill.
“We are disappointed that the bill disregards important principles from a broad coalition of respected tribes and card rooms that help prevent corporations and entities that previously violated federal law from profiting from tainted software, brands, and databases derived from illegal activity,” he said.
“Tribes have been steadfast in the principle that online poker be consistent with California’s longstanding public policy of limited gaming, and that means keeping it to just tribes and card rooms.
“California voters have always had the final say on gaming expansion and they have already rejected expansion of gaming for horse racing,” he added.