California Online Poker Bill in Limbo Due to Lack of Consensus Among Stakeholders

California Online Poker Bill
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  • PG News August 12, 2016
  • 2 Minutes Read

Hopes of the California online poker bill, AB 2836 being passed this week, were once again dashed after the bill appeared on the Assembly file on Thursday morning, but was passed over, due to lack of support (the bill requires two-thirds vote for approval).

The bill has been in process past many years and the main obstructions in its way are the majority of the native Indian tribes, who are openly against PokerStars getting an entry through the ‘bad actor’ clause.

 

Recent Amendments

In order to pacify the objecting tribes, Senator Adam Gray introduced a number of amendments, such as a $60 million compensation to the horse racing industry, provided they refrain from offering poker games. The industry agreed and is amenable to the bill in its latest avatar.

Gray also proposed a $20 million penalty or a wait of 5 years for ‘bad actor’ operators like PokerStars to re-enter the market, but the opposing tribes are asking for a combined penalty of $60 million plus a 10 year wait, making it clear that they are just not open to any truck over the PokerStars issue.

 

Last Minute Negotiations

On Monday, August 9, the bill was pulled from the Assembly floor, in order to reach a common ground between the warring factors. Sources report that some of the tribes have agreed to the bill in its new form, but the Pechanga coalition continues to object even after the recent amendments by Gray.

 

Support For Bill

The bill has full support of the Poker Player’s Alliance (PPA), which has been lobbying hard in the Capitol for the legalization of online poker in several different states. Besides the PPA, Twitch streamer Jason Somerville, who represents PokerStars, appeared on CNBC, explaining the benefits of the bill and exhorting players to write in to politicians and support it.

 

Time Running Out

The bill still has a long way to go before it becomes a law. It first has to pass the Assembly and then the Senate, where there is already a negative reaction to the bill. One of those not in favour of the bill, Senate President Pro Tem Kevin de León recently told the The Los Angeles Times that he was not inclined to authorize such card games on the Internet, without proper scrutiny first.

Meanwhile, the legislative session ends on August 31, with barely 20 fays left for Gray and his team to get a consensus among stakeholders, and then manage to get it through the Assembly.

Since the Assembly typically votes on Mondays or Thursdays, the next two weeks will be crucial for the bill if it is to become law this year.

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