California continues slow-pacing towards the legalization and regulation of online poker within its borders, latest developments from the state show. It was reported late on Wednesday that under an eleventh-hour amendment to AB 2863, the current legislation on the matter to be discussed by local lawmakers, PokerStars may be banned from providing services in the state for a five-year period when and if the legislation in question is approved.
Assemblyman Adam Gray, the legislator behind the online poker bill, has formerly expressed hopes that it would be voted by both the state Assembly and Senate before the Legislature’s scheduled August 31 adjournment. Industry sources also pointed out that he is targeting a Monday Assembly vote.
Generally speaking, the last-minute amendments call for PokerStars and other poker operators that continued providing real-money gambling options to US residents even after the Unlawful Internet Gambling Enforcement Act came into effect in 2006 to be prevented from entering the California market for a period of five years. A similar ban was imposed by Nevada with the state online gambling market’s post-UIGEA legalization and regulation.
The latest “bad actor” amendments have likely been welcomed by the coalition of California tribes led by the Agua Caliente Band of Cahuilla Indians and the Pechanga Band of Luiseño Indians that have been lobbying for the legalization of Internet gaming options within the state for some time now but have been strongly against PokerStars’ entrance into the local market.
Here it is interesting to note that the “bad actor” clause has always been among the most highly controversial ones to be comprising Assemblyman Gray’s bill. All concerned parties believe that the likes of PokerStars should be punished for providing online gambling to US residents even after that became illegal, but could not agree how exactly these should be punished.
Assemblyman Gray was himself against the introduction of a “bad actor” ban as PokerStars was now managed by Canadian operator Amaya and the latter had no involvement in the proceedings brought against the online poker room a few years ago. As it seems, however, the legislator has made certain compromises with his initial ideas in favor of a quicker passage of his legislation.
Apart from the “bad actor” amendments, there were certain other last-minute changes implemented in the bill, according to industry sources. For instance, under the latest version of the proposal, online poker operators will be required to pay a flat 10% tax on revenue. Formerly, Assemblyman Gray’s bill proposed a varying rate of between 8.64% and 15%, based on overall full-year results within the state’s industry.
AB 2863 will have to be voted in favor of by two-thirds of all Assembly lawmaker in order to be sent to the Senate. According to tribal representatives, however, getting such a support might not be an easy task, given the numerous controversies that have arisen over the matter within the past several months.
