Assemblyman Reginald Jones-Sawyer of California has fired the opening shot in a new battle to bring online poker to the Golden State. Following ten years of efforts, it remains to be seen whether AB 1677 (The Internet Poker Consumer Protection Act) will be able to do what other bills before it failed to do – pass through California’s legal pipes to finally bring legal and regulated ipoker to the state.
The bill’s text was introduced on February 17th by Jones-Sawyer.
It states, among other things:
“This bill, which would be known as the Internet Poker Consumer Protection Act of 2016, would establish a framework to authorize intrastate Internet poker, as specified. The bill would authorize eligible entities to apply for a 7-year license to operate an authorized poker Web site offering the play of authorized Internet poker games to registered players within California, as specified. The bill would require that the license be automatically renewed every 7 years upon application, as specified. The bill would prohibit the offer or play of any gambling game provided over the Internet that is not an authorized Internet poker game permitted by the state pursuant to these provisions.”
So what does AB 1677 encapsulate?
Licensing Fees and Taxes
* Successful applicants made up of Californian cardrooms and tribes may apply for a 7 year poker license.
* The license will cost the operator $12.5 million (credited against future taxes).
* Progress tax rate based on entire online poker industry’s performance, beginning at 8.847% (less than $150 million) to 15% (over $350 million).
Racetrack Compromise
* The bill continues the compromise introduced last year by Assemblyman Adam Gray that California’s racetracks will not seek to be included in the list of eligible operator applicants, in return for 95% of the first $60 million collected each year by the new online poker industry.
* The creation of the California Horse Racing Internet Poker Account to collect the annual funds.
* Racetracks may be service providers in partnership with ipoker operators under very specific conditions.
Bad Actors
* A final decision regarding PokerStars’ (and other ‘bad actors’) entry into the market is not presented in AB 1677.
* Gambling regulators will decide on an applicant’s suitability.
Enforcement Fund
The establishment of the Unlawful Gambling Enforcement Fund to provide resources to law enforcements to enforce the regulations and to halt the activities of offshore gambling sites.
