California Online Poker Bill Faces Setback
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A bill that would have made California the first state in the United States to legalize online poker was pulled from consideration this week. State Senator Rod Wright withdrew the bill from the State Senate in order to address concerns that had been raised by opponents of the bill.
“This bill still needs a great deal of work,” admitted Wright, a Democrat representing Inglewood.
The bill was designed to allow California to contract gambling operators to run poker sites available specifically for California residents over the age of 21. However, the California Nations Indian Gaming Association was opposed to the bill, saying that it could potentially take away local jobs at tribal casinos in the state. Provisions that would have allowed offshore gambling companies to compete for the right to run the online poker rooms were also criticized.
However, Wright also stated that he wants to bring the bill back to the table in an improved form soon. According to analysis related to the proposed legislation, over 1 million California residents play online poker each week, and legalizing online poker could generate over $2 billion a year in new revenue for the state. In the bill’s current form, at least 10% of all monthly profits from the online poker rooms would have gone to the state.
Currently, legislation with the potential for raising revenue has become a priority in California. The state faces a $19 billion deficit, which has the state looking to cut programs – or prevent such cuts by finding ways to bring new money into the budget.
Other sections of the bill also received harsh criticism from observers. For instance, one provision would have made visiting unauthorized gambling sites a misdemeanor criminal offense. The Poker Players Alliance, which has come out against the bill, targeted this provision in particular.
“Criminalizing harmless recreational conduct that typically takes place in the privacy of one’s home…undermines public respect for all laws,” the group said.
If California were to legalize online poker, they would be the first state to formally do so and regulate their own poker sites. Other states, such as New Jersey, have also looked into adopting similar measures.