Will California’s hottest chance to see regulated online poker become a legal reality manage to pass the committee stage? AB 2863 faces another test next month as the intrastate online poker bill heads to the Assembly Appropriates Committee, possibly on June 15th.
AB 2863 was recently approved by the Assembly Governmental Organization Committee, giving Californians hope of seeing it become law since this is the furthest a bill of this kind has traveled through the legal channels.
However, there are expected to be many more hurdles in the bill’s path, especially since lively debates have been heard and will continue to be heard.
The first relates to the ‘bad actor’ clause which has, until now, been kept out of the bill’s wording. Some tribal groups, however, are expected to demand that the clause be included since they want to keep PokerStars out of any future online poker industry.
Another issue that some interest parties may have is the deal signed with the state’s horse racing industry which will see them receive a $60 million annual payout in return for their support of the online poker bill.
The hearing is also expected to host debates about the tax rate that will be applied to a potential industry, as well as the requirements set for operators to be eligible to apply for, and receive, an online poker license. At a meeting with bill sponsor and committee chair, Adam Gray this week, tribal leaders agreed that a 10% tax rate is the realistic maximum for the industry, although committee members may want a higher rate.
Late last month, the Assembly Governmental Organization Committee unanimously (18-0 vote) passed AB 2863, calling for the legalization and regulation of online poker in the Golden State.
A press release put out by Gray soon after the April hearing read: “The question of how to regulate iPoker has been in front of the Legislature for nearly a decade. We have not rushed this process. We have taken the time necessary to thoroughly understand and respond to the concerns put forth by stakeholders. Through this process, we have created a coalition that is willing to acknowledge the problem and support a comprehensive solution.”
Gray said during the hearing that the bill accomplishes what is most important and what sometimes gets lost in discussions on iPoker legalization – the issue of protecting consumers.
AB 2863 has to be passed by a two thirds majority in order to reach the Senate. It is unclear yet what the prospects for the bill are in the long run.
