Poker Players Alliance Labels California Poker Bill As “Misguided”

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Tuesday, December 9th, 2014 | Written by Charles Washington

Assemblyman Mike Gatto (photo) introduced his new Internet Poker Consumer Protection Act (AB 9) earlier this month, but the proposals he suggested in order to create a framework for legalized online poker in California next year have received harsh criticism from the Poker Players Alliance (PPA), with the Interest group’s Executive Director John Pappas labeling the bill as “misguided”, too exclusive, and a surefire way of preventing a regulated online poker market from thriving.

At the heart of the disagreement is the bill’s stipulation that sign-ups for online accounts take place at land-based casinos, presumably in order to restrict underage play, and as Pappas explains:

“It defeats the purpose of online poker, to be able to deposit from your computer. I think it’s someone’s misguided understanding on how to establish synergies between brick-and-mortar casinos and online players. There are other ways to bring people to your properties.”

Horseracing And PokerStars Frozen Out

In addition to requiring people to register for online accounts via satellite service centers or land-based casinos, the Internet Poker Consumer Protection Act limits online poker site operators to just Native American casinos and card rooms, thus freezing out the horse racing industry from the new iPoker market. Furthermore, the bill also seems to exclude Amaya Gaming and PokerStars from consideration, a move Pappas branded as “unwise and unfair” and detrimental to developing a potentially better product for California.

While the bill includes a toughly worded clause excluding all “bad actor” from a regulated Californian market, a discretionary provision could allow the Casino Control Commission to waive that clause for PokerStars providing a number of requirements are met related to protecting integrity, public confidence, and the public interest. Nevertheless, the pro-PokerStars coalition, which includes a number of Indian tribes and cardrooms, reacted strongly to the clause with an official statement, commenting:

“Any bill that seeks to establish artificial competitive advantages for some, while denying Californians the best online poker experiences, will only serve to divide the community and will be opposed by our coalition.”

Players On Unregulated Sites To Be Criminalized

The new bill also seeks to criminalize those people who are found playing on unregulated sites, raising yet another bone of contention with the PPA. According to Pappas, such a provision is wholly unnecessary as when a good market is attained players will find no reason or incentive to play on unlicensed sites.

A Rehash Of Unsuccessful Earlier Proposals

Assemblyman Mike Gatto (D-Glendale) has tried to pass off his bill as different from previous proposals, and said it borrowed from “time tested business practices” and offered an online poker framework capable of pushing California to the forefront of world online poker. Regardless, the pro-PokerStars coalition does not agree and labeled AB 9 as simply “a rehash of previously unsuccessful proposals.”

Bill Pushed Under “Urgency”

Interestingly, The Internet Poker Consumer Protection Act of 2015 has been marked as a bill under “urgency,” meaning although requiring a two-third majority to be ratified, it would subsequently take effect immediately and would not even require a signature from Governor Jerry Brown to pass into law. However, with many powerful factions speaking out against the bill’s passage, the chances of it passing in its present form is slim at best.

Jewel In The Crown Of US Online Poker

Unlike any other state, California has the potential to be a game changer for US online poker with its huge population of 38 million people capable of sustaining enough liquidity to ensure a viable poker landscape. As an Academicon study by Dr. Ingo Fiedler, explained earlier this year:

“Without a federally regulated online poker market, which appears unlikely, state-by-state markets will stay well below their potential. While a large state like California has a large enough player base to support an in-state market and even reach up to 80% of its market potential, smaller states like Delaware will not be able to maintain a market on their own.”

According to PokerScout, a legalized Californian online poker market could generate revenues of around $263 million in its first year of operation, increasing beyond $384 million by year ten. The market research company’s findings were based upon data collected pre-Black Friday between 2009 and 2010, which showed 178,300 Californian online poker players had created a market valued at $155 million, or 16% of all US iPoker revenues at that time.