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California online gambling bill put on hold

Posted on July 1st, 2010

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Senate Bill 1485 or the bill to legalize online gambling in California as written by Senator Roderick Wright, is still on, but on a temporary halt. Wright doesn’t seem to loose any hope at all, remaining optimistic he says “ The good thing about urgency bills is you can continue to amend them. I will prevail on the leadership of this building to try to move something; if we don’t, we’ll start again in the next session.” Friday is the set deadline for the bill to come through. However, the bill is facing a number of great hindrances making it a fairly long shot to pull together. There is the Morongo Band of Mission Indians that are against the proposal, the fact that some California card rooms are already offering online poker, and other anti gambling associations altogether make the force behind the proposal weaker.

In the event the bill will pass, it will allow 3 hub operators to operate and have a 20 year contact to offer online gambling in the state to California adults. The bill also required a lump sum amount to be paid to the state as well as about 20% of the hub’s total earnings. If passed, this will force the Department of Justice to also approve the game rules of all online games . Indian groups are also questioning the impact this bill will have on their own casino ventures, especially those only on the planning stage. The livelihoods of the people of the state will also be affected.

While Senator Wright says a lot of learning still must be made to thoroughly understand all aspects of the bill, he states with hesitation the opportunities that will be lost while the bill is still under process. He estimates that in the next 10 years, revenues generated from the 400,000 California games will amount to about $2 billion. The senator recognized the growing industry of online gaming, amidst the attempts to seize its growth. He also explains that the goal for this bill is not to create new players, but to capture the current market, already there and playing actively. He regret the opportunities lost while the state is still, deep in its thoughts, deciding over the bill. “The longer we wait, the more difficult it will become to get that business back” said the senator.

Senators Curren Price and Lelan Yee, both Democrats believe taking it slow, doing nothing initially and continuing to study the law is best for the moment. Yee says that it is better to move carefully with the process so as not to make any wrong decisions. Yee continues to say “The price we would pay would be absolutely incredible, and would set us many years behind.” Senator Tom Harman, however, views the bill as an expansion to what California already has in terms of current gambling rules. He also fears that the bill might “ignite” uncontrollable gambling habits on the people of California. The senator says he needs to further study the bill and check for more information. He also expressed how the tribes in California have created multitudes of job opportunities and have given in millions of revenues.

Morongo Tribe member Josh Pane recognized Wright’s effort and is looking forward to having more talks with him on the bill. Card clubs are also on the same page as the tribe. The senator himself says he is open to more talks and wishes for the state to get the bill moving, he feels that the bill may not keep up with the trends of the market if not given the right amount of push and support.”“The world isn’t sitting still while we figure out what we do.”