The Golden State’s path to authorizing internet poker persists, with the most recent legislation, AB 2863, encountering significant alterations. Presented by Assemblymember Adam Gray, the measure initially progressed smoothly through the Assembly Governmental Organization Committee with a fully supportive vote. Nevertheless, it’s currently under scrutiny, with numerous modifications suggested.
David Fried, a well-known gaming attorney in California, has illuminated these adjustments. The main objective is to refine specific elements of the original legislation, particularly regarding the levy percentage, permit costs, and the interpretation of “unsuitable operators.”
The “unsuitable operator” provision, a particularly debated element, originally prohibited companies that persisted in taking wagers from US players after December 2011 from securing a permit in California. The modifications intend to provide a more distinct understanding of who this provision genuinely impacts.
As an illustration, PokerStars, which withdrew from the US market in April 2011, would be qualified for a California permit if the modifications are approved.
Moreover, the revised measure presents a potential reprieve to companies that failed to meet the 2011 cutoff. They could still be eligible for a permit if they can establish that crucial personnel engaged in disregarding the deadline are no longer affiliated with the applicant. Alternatively, they could contend that any wagers placed after the cutoff transpired within a justifiable timeframe, enabling the company to halt its US operations swiftly.
Other noteworthy modifications put forth by Fried encompass a rise in permit costs from $10 million to $12.5 million. Furthermore, the suggested levy framework would connect the rate companies pay to their total gaming earnings.
The most recent iteration of California’s internet poker legislation, Assembly Bill 2863, removes all ambiguity: if enacted, it exclusively permits poker. This bill does not include blackjack, roulette, or any other casino offerings. The concluding draft is anticipated to reach California legislators’ offices sometime in the current month.