PokerStars A Major Factor in Success of California iPoker Legislation

Home » Poker News » PokerStars A Major Factor in Success of California iPoker Legislation

Monday, June 27th, 2016 | Written by Adam Brown

Online poker has been on the table in California for a number of years, but lawmakers in Sacramento have yet to make real progress toward legalizing Internet poker in the Golden State. Finally, though, there is some sign that a move towards legalization and regulation may be imminent; however, PokerStars’ involvement with the process may either make or break the deal.

Current State of California iPoker

California lawmakers have finally been able to overcome one of the biggest objectors to the legalization of online poker–racetrack operators that were worried regulating iPoker would destroy their business. To address these concerns, California lawmakers have added a clause that states that a portion of the taxed revenues generated by iPoker will be given to racetracks as a subsidy.

Now that the matter of racetracks has been handled, there is still a major score to settle. Currently, there are two factions both trying to exert influence on Californian lawmakers. The first consists of the Morongo Band of Mission Indians, the San Manuel Band of Mission Indians, card rooms located in Southern California and PokerStars; while the second is made up of the Pechanga Band of Luiseno Indians and the Agua Caliente Band of Chuilla Indians.

The Power of PokerStars

With PokerStars now aligned with Indian tribal leaders and card rooms, there is a powerful voice pushing for legalization. Amaya, the company that owns PokerStars, has considerable influence and a record of successful lobbying around the world. Many people feel that with PokerStars now in play, there is more of a likelihood that online poker legislation will pass.

The Problem with PokerStars

The problem posed by PokerStars involvement in the California iPoker situation is that it’s giving the Pechanga and Agua Caliente bands a reason to argue against legislation. The tribal representatives are stating that because PokerStars continued to operate illegally in California after Black Friday that the site is a “bad actor” and should be barred from doing business in the state. As coalition member Leland Kinter, chairman of the Yocha Dehe Wintun Nation, stated recently:

“These bad actors should not be rewarded with the opportunity to offer internet poker websites. The same is true for companies that purchased the ‘tainted assets’ with the hope of profiting from the ill-gotten gains.”

The fact that Amaya recently settled a legal case in the face of insider trading allegations is also adding fuel to the fire despite the fact that the settlement was publicly stated not to be an admission of guilt. In response to the criticism, the coalition led by PokerStars is countering that all of the wrongdoers involved in the illegal operation of the site no longer work for the company, and say that the opposition is merely trying to keep them out of California to minimize competition.

What’s Ahead for iPoker in California?

The current Assemblyman Adam Gray sponsored iPoker bill, AB 2863, must be passed by the Assembly Appropriations Committee to continue on the path to becoming law. Should it be successful there, the bill must be voted on in both the Assembly and the Senate by August 31 in order to have it signed by the governor and officially passed into law. While there is still some hope that the stars could properly align for the deal to move forward, the continued fighting between the pro and anti-PokerStars factions could mean that Californians will have to wait at least another year before finally seeing regulation.

Nevertheless, the pro-internet poker coalition have haled the progress made so far towards regulation, and have expressed optimism that AB 2863 will eventually pass into law. As Teamsters and Jockey’s Guild lobbyist, Barry Broad, explains:

“This bill continues to be an example of how to do things right, in terms of moving a complicated issue forward. We are now at a point where the horse racing industry is supportive of the bill, a vast majority of Indian tribes are in support of this bill, the card industry is in [support of] this bill, the online poker folks are in support of this bill and we are moving toward resolution of all the issues.