California passed major hurdle on April 28th, with their passing of bill AB 2863. This bill has seen numerous updates to suit the needs of both the horse racing industry, and the Tribal casinos that appear to be the major roadblocks for regulating online poker.
After being presented to the state senate, the bill was passed unanimously with a 19-0 vote. But, we still have a way to go before online poker in the country's largest state. This is a huge step for online poker as California is seen as the one state that sustain an interstate pool of players. With the possibility of millions of dollars up for grabs, it's the potential start to states pooling their players to create a more lucrative poker ecosphere.
While the passing of this bill can be seen as great news, there are still some major roadblocks to overcome.
In the beginning tribal casinos were concerned of the possibility that California race tracks would monopolize an online gambling space. This was settled with provisions that would essentially pay off those tracks in exchange for staying out of online gambling.
However, the tribal communities are still dictating how, and more importantly, who can enter the California online gambling market. There seems to be a division among the major tribal leaders on this matter that needs to be worked out before any further progress can be made.
The two major tribal leaders leading the charge – Pechanga, and Aqua Caliente are pushing for regulations that limit poker rooms who were operating in the United States even after the passing of the UIGEA in 2006.
This has been a major point of discussion even before Nevada was granted regulated online poker, but we soon that dissipate with entry of Poker Stars in New Jersey.
It's my opinion that this move is meant to keep out competition, rather than provide a “safe” environment. That however, is for another debate.
The one bright spot coming out of this news is that the racing industry seems to be satisfied with the bill. When we look at how much money they would receive, it makes sense. If the current legislation were to be the final passage, horse racing tracks would benefit from $60 million. This can be seen as free money for simply staying out of online gambling.
Now the main hurdles are bringing tribal leaders together. Which is not the easiest task in the world. Many see the potential income from online gambling in California to be much greater than the $60 million that was initially estimated.
With such large amounts of money up for grabs, it's fair to see how communities who have run California gambling for decades want to ensure their future profits remain intact.
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