State tries again to legalize, regulate online poker

California, after roughly a decade of toying with online-poker legislation, may finally be ready to go all-in on a legalization bill this year.

Online gaming has treaded some murky legal waters in recent years. In April 2011, the U.S. Justice Department shut down the websites of top online poker companies such as PokerStars and Full Tilt Poker and charged them with wire fraud and money laundering before reversing course later that year and determining that the Wire Act of 1961 prohibited only online sports betting. Since then, however, only Delaware, Nevada and New Jersey have passed bills legalizing and regulating online gaming.

Assembly Bill 2863, introduced by Assemblymen Adam Gray, D-Merced, and Reggie Jones-Sawyer, D-Los Angeles, would establish a regulatory framework to authorize online poker within California. Regrettably, the bill would require that up to $60 million per year in online poker revenue be used to buy off the horse racing industry, which also has expressed an interest in getting into the market. Only Indian casinos and authorized card rooms could offer online poker, although they could partner with service providers such as PokerStars.

As with Delaware, Nevada and New Jersey, geolocation technology would be used to verify that players are physically located within California borders. Violations of the law would be punishable as a felony, which seems rather severe.

California’s hypocrisy on gambling policy is appalling. The state arbitrarily condemns and prohibits some forms of gambling, while permitting other forms in Indian casinos and card rooms, and even actively promoting it through the California Lottery. Some may gamble irresponsibly, and a small percentage may become addicted to gambling, but these vices or mental health issues should not constitute crimes.

In any case, people have the right to spend their money as they please, so long as they are not violating someone else’s rights in the process.

We appreciate the effort to “legalize”online poker in the Golden State, but its “revenue-sharing” provision is anticompetitive, and the bill is still too heavy-handed for our taste. California should simply get off its faux moral high horse and legalize all forms of gambling.




State tries again to legalize, regulate online poker - The Orange County Register

Can you share information about the other games that may be legalized?

Can you share information about the other games that may be legalized?

Like any other game, poker is a game of skill and other games will be following.