California Online Poker Proposal Facing Opposition

A recently floated proposal for legal, regulated intrastate online poker in California is facing a slightly tougher battle than expected. That’s the conclusion of industry analysts after a week of events that saw mounting opposition to the idea.

The first hurdle: No version of the bill is likely to be brought before the California Legislature before the current legislative session closes. That’s the word from Senate Pro Tem Darrell Steinberg, D-Sacramento. Steinberg’s response to a question regarding the bill during a press conference last week: “I don’t think it should be taken up in the last four weeks [...] I think it is a legitimate idea for consideration. I only have one question when I hear a proposal like that: how much money for the state General Fund? It’s all I want to know. You know, is it two, three hundred million dollars? If it is, I’d consider it. But I think it’s going to take more than four weeks to analyze that kind of proposal and the potential economic benefits.”

Unfortunately for supporters, delay of the bill is likely to hurt the bill’s chances, giving extra time to opposing forces to gather, construct and execute a campaign of opposition in both the public and governmental arenas.

The group behind the proposal, a consortium of Indian gaming companies and California card clubs, also failed to win support from the largest advocacy group for regulated poker - the Poker Player’s Alliance. John Pappas, PPA executive director, told the CA political magazine Capitol Weekly that he’s concerned about the exclusivity the proposal would allow a small gorup of operators: “There would be no incentive for there to be a competitive rake,” he said. “Many sites offer bonuses, free rolls and opportunities for people to play for nearly nothing. I don’t know if there would be any incentive for that to be provided under a monopoly setting.”

Also lined up against the proposal is a handful of Indian gaming concerns. While the proposal has the backing of the powerful Morongo Band and the rest of the 36-member California Indian Nations Gaming Association, several groups voiced their opposition to the idea publicly last week, including the Pechanga Tribe, the Rumsey Indian Rancheria and the California Tribal Business Alliance. The Pechenga Tribe sent out a letter to other Indian gaming operators last week outlining their opposition to the plan: “Pechanga has had a standing oppose position to online poker since proposals first surfaced late last year out of concerns for the far-reaching legal, political and policy consequences of an expansion of this magnitude.”

Bottom line: while regulated intrastate poker may eventually become a reality, it’s likely going to take a few more sessions and a much broader base of industry support before any concrete plan is developed and set into motion.