State of California’s Online Poker Bill Passes Senate Committee
June 30th, 2008
Democrat assembly member Lloyd Levine’s bill to authorise online poker in the state of California has moved a step closer to a vote in the Legislature following this week’s amendment and passing of Assembly Bill 2026 by the Senate Governmental Organization Committee.
Mr Levine presented Assembly Bill 2026 to the Senate Committee asking for a study to be commissioned with the goal of bringing transparency and accountability to the emerging world of online poker. The vote was made 6 to 1 in favour.
The bill directs the California Gambling Control Commission to work together with the Department of Justice to perform a study on authorising intrastate online poker in California, with findings to be reported to the Legislature by June 30th 2009.
"Right now millions of people in California are playing poker online for money. They are unprotected and unregulated. That lends itself to deception and potential fraud," said Levine. "The servers are in places like Bermuda and Isle of Mann. That means Californians have no protection if something goes wrong."
In his testimony to the Senate Committee Mr Levine said that nothing would be enacted this year and that the study is to be conducted by the Attorney General under the bureau of the Gaming Control Commission. He added that model regulations would be drafted to allow everyone from tribes, tracks, card-clubs, and the Senate Committee to review and comment on to ensure it is workable.
Despite the introduction of the UIGEA which prevents U.S. financial institutions from processing payments to and from online gambling businesses, Mr. Levine believes intrastate online poker in California could be allowed as the Act does exempt three categories of transactions: intratribal and intrastate betting, and interstate horseracing.
As defined in the Act, intrastate transactions are bets or wagers that are made exclusively within a single state and where state law contains certain safeguards regarding such transactions. The exemption in UIGEA is consistent with the idea that state governments have the primary responsibility for determining what forms of gambling may legally take place within their borders, a right given to them under the 10th amendment of the U.S. Constitution.
Mr. Levine states that AB 2026 would study the ability of the state to protect Californians by licensing and regulating intrastate poker websites. By authorizing online poker, not only would it allow California to generate significant income while protect its consumers, but would also allow law enforcement agencies in the state to work with the industry in preventing underage gambling, identity theft, and fraud.
Mr Levine’s online poker bill now moves forward to the Senate Appropriations Committee, another step closer to a vote in the Legislature.
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