• New Bills Introduced To Congress
• Recent Bills Introduced

California State Senators Roderick Wright and Darrell Steinberg have introduced SB 1463 in the California State Senate. If passed, SB 1463 would allow for online poker to be offered by approved gaming companies in the State of California. Players would have to be located within the state to participate. The bill would allow for companies to apply for a license to offer games to California. At first, the only allowable game would be online poker. After two years, other internet gambling games could be approved as long as they are currently legal under brick and mortar gaming laws. The state legislature could reject any new game introduced after the two year period within 90 days of approval by the online gambling regulatory body.

In June, an online poker bill passed through the State Assembly’s Appropriations Committee. It was the furthest an online poker bill had ever gone in California. Then-Assemblyman Adam Gray, author of the bill, introduced amendments supporting a five-year ban for persons that took bets in California. Senator Lou Correa proposed a new online poker bill in California last Friday that was introduced on the last day permitted for this legislative session. Senator Lou Correa proposed a new online poker bill in California last Friday that was introduced on the last day permitted for this legislative. Feb 19, 2015  Bill is third on California’s online poker landscape Hall and Gray’s bill will join two other bills attempting to bring regulated online poker to California. The first is Assemblyman Mike Gatto’s AB 9, introduced in December. The second is Assemblyman Reggie Jones Sawyer’s AB 167, introduced in.

California Assemblyman Reginald Jones-Sawyer introduced AB 167 in 2015. The bill would have permitted all card clubs, tribes and racetracks to offer online poker in California. Additionally, it would have created player penalties for giving action to unlicensed, offshore sites.

A potential licensee would be required to make a deposit into the Internet Gambling Licensing Fund. This fund would be used to fund background checks on applicants. An Internet Gambling Fund would also be established. This fund would cover regulatory operations, consumer protections, and problem gambling. Once approved, a licensee would be required to deposit $30,000,000 into the Internet Gambling Fund. This deposit would go towards taxes for the first three years of holding a license.

Nov 18, 2011  On Thursday, the New York Post reported that an online poker bill will be introduced in the Senate before the current congressional session ends. “A bill will be proposed by the end of the session,” a source in the New York Post said. “There is a 50 percent chance it will be approved by next. AB 1677, a bill to legalize and regulate online poker in California, was introduced on February 17, 2017 by Assemblyman Reggie Jones-Sawyer. It’s pretty much the same bill as the previous year, and unfortunately, it didn’t make any headway. Nevertheless, the future is still relatively bright long-term for online poker legalization in California.

State of California Benefits

The bill is considered to be an emergency bill. This means that it will require a two-thirds vote to be approved. If approved, the bill would become law immediately. Standard California laws become effective on January 1st of the following year. Standard bills only require a majority vote. The sponsors of the bill estimate that $200,000,000 would be generated in tax revenue in the first fiscal year. The sponsors of this bill consider the revenue that could be generated by this bill to be so important that they are willing to take this route first. Should this bill not pass, it could be reintroduced as a standard bill but would not go into effect until January 1, 2013 should it pass.

How to Qualify as a Licensee

The bill allows for private companies and federally recognized tribes to provide the online gambling services. Private companies can be current brick and mortar card clubs, horse racing tracks, off track betting parlors, and online off track betting establishments. The Department of Justice would issue the online gaming licenses to both tribes and private companies. The Department of Justice would be allowed to negotiate the terms and conditions of the licenses.

California SB 1463 allows the State of California the option of moving to federal online gambling down the road should there be a federal law passed into law in the future. The state would be under no obligation to move to a federal online gambling program under the law. California would also have the option of networking with other states that have already passed online gambling legislation.

State of California Presence

All licensees and their employees involved with the operations of the licensed Internet gambling sites must physically be located within the State of California. This includes all player support. There are some exceptions including technological work, game security, and software development.

Player Specific Rules

There are some rules that would affect those not directly involved in the licensed business. Most of these pertain to players. Players would be required to be 21 years of age or older. Players would have to prove their identity before playing. A player must also live at the address on their check or registered credit card that is used for deposit. Players would not be allowed to deposit by cash or money order. When using a credit or debit card, the words “Internet gambling” would be printed as the charge. It would become illegal for a player to play on an unlicensed gambling site in the State of California. Internet cafes where the primary intent is to provide online gambling would also be illegal to participate in as either an owner or player. Players will be able to self exclude themselves from California online gambling.

Players would be able to create an account in several different ways. These include by mail, telephone, or electronically. Players would be required to submit their:

• First and last name
• Address
• Telephone number
• Social Security Number
• Identification that proves that they are 21 years of age or older
• Valid email address

Players would be able to set up deposit limits and loss limits. There is no specific set time for self imposed limits. Every six hours a player would be presented with a pop up screen that would tell the player how long that they have been playing and how much they have won or lost.

Licensee Specific Rules

All approved licensees would receive a license valid for ten years. All licenses would go into effect on the same day, no later than January 1, 2014. There will be no limit on the number of licenses. Companies would be allowed to launch joint ventures that would only require one license. Not only will the licensees be required to submit to background checks and the license terms and conditions, all subcontractors and affiliates will be required to adhere to the rules and standards. The license application fee would be between $1,000,000 and $5,000,000. A licensee may abandon their license with 90 days notice. A written explanation is required to be submitted.

Licensees would be required to monitor their games. Licensees would be required to identify players that are not human, also known as bots. Licensees would also be required to stop cheating and collusion, and report those suspected cheaters and colluders to the state.

Licensees would not be allowed to extend credit to players. Licensees would be required to identify all banking transactions and their origins. Licensees would also not be allowed to pay interest on balances. Funds would be required to be held in a segregated account.

Licensee’s support would be based in California. Support must be available 24 hours a day, seven days a week. Player support would be required to be open every day, even on all holidays. A toll free number is required to be provided by all licensed operations.

Operators would be allowed to generate revenue in two ways. They may take a per hand charge in cash games. California does not charge rake as a percentage of the pot. California card clubs take a set amount per hand based on the limits. It is assumed that this would be the same for online poker. California online poker rooms would also be able to set a house tournament fee. The fee could vary based on the size of the buyin. All fees must be fully disclosed.

Licensees would be required to submit monthly statements to the State of California. These statements would include a 10% tax on its monthly revenues. The $30,000,000 license fee would be a down payment on those taxes for the first three years. Once an online gambling site has surpassed $300,000,000 in gross revenues during the first three years of holding their license, they would be required to submit a 10% tax on gross revenue monthly. Licensees would be required to withhold 5% from tournament winnings of players assuming the win was over $600 and the win was at least 300 times the tournament buyin.

Employee Qualifications

Employees will be required to be based within the State of California. Employees will be required to hold a work permit. The work permit process will include a background check. The license would require a renewal every two years. The bill also applies the same standards to subcontractors.

Affiliates

Affiliates are specifically mentioned in the bill only once. Affiliates would be required to submit to a background check, including a fingerprinting. The bill does state:

Nothing in this section shall prevent a licensee from entering
into a marketing agreement with any third party to recruit people
to become registered players if the registration process described
in this section is under the sole control of the licensee.

This wording would lead one to believe that it would apply to media buys, not traditional online poker affiliate agreements. This may make it easier for California online poker rooms to buy media packages, as opposed to revenue share or CPA.

Existing Online Poker Room Involvement

Existing online poker rooms that have accepted bets from U.S. players after December 31, 2006, would not be allowed to be involved with California online poker. This includes business names, trademarks, software, nor could any player data be used from those firms.

Local Jurisdiction

Cities and counties would not be allowed to become involved in the online gambling business in any way. This includes additional taxes on players or operators. Local jurisdictions would also not be allowed to opt out of online gambling.

Author’s Notes

Bills tend to look nothing like a final law. Expect there to be a lot of debate on this hot topic and many changes. California is desperate for revenue and this may sway legislators that may otherwise be against the expansion of gambling within the state. Other states are looking closely at this, especially Nevada. That is because California would be able to network their games with other states that have already legalized online poker. Expect that to create some lobbying efforts from outside the state.

CA is home to nearly 100 real money poker card rooms, 68 tribal casinos and a plethora of horseracing tracks and thanks to all those real cash gambling options, many people say California, and not Las Vegas, is the gambling capital of the United States. High stakes poker betting pros and rich businessmen alike flock to the state to play in some of the biggest real cash poker and casino games and tournaments in the world. Gigantic casinos like the Commerce attract millions of tourists to California each and every year, rivalling historic landmarks like the Hollywood Walk of Fame in popularity. Remember though, all these 2020 betting options are at land based casinos not poker websites or Internet casinos.

Due to its nearly 38 million residents, California is on the radar of just about every state that has already passed, or is in the process of passing, laws that legalize regulated Internet gambling and lawful real money Internet poker. Interstate compacts involving California would do wonders for the popularity of online poker websites in the United States.

However, although committees have been trying to hash out a plan that would bring legal Internet poker to California for some time, no new gambling legislation has actually been passed yet. But make no mistake; California is undoubtedly the state most likely to pass an iGaming bill in the very near future and open up casinos and poker websites to CA residents.

Avid poker players in The Golden State will have no trouble at all signing up for an account at any one of our real money US poker sites.

PokerStars Forges Historic Partnership With Morongo Tribe, California Cardrooms

Quick Jump

• 6 The Facts

In a joint press release submitted by the Rational Group, the Morongo Tribe of Mission Indians and three of California’s largest real cash poker cardrooms (the Commerce, the Bicycle and the Hawaii Gardens Casino), the group announced its plans to bring regulated online poker to the Golden State. PokerStars would not only serve as a sub-contractor for the conglomerate, but become their front facing brand and provide lawful Internet poker to betting fans in CA.

In a display of impeccable timing, the release was issued during a hearing held by the State Assembly’s Committee on Governmental Organization to discuss the fiscal and public policy implications of legalizing online real money poker in California.

Currently in 2020, the bills up for consideration by legislatures both call for a “bad actor” clause, which would effectively eliminate the world’s biggest Internet poker gambling provider, PokerStars from the equation.

The bad actor issue may inevitably delay the passage of a regulatory gaming act in California and cause serious delays on bringing legit poker gambling on the Internet to long suffering players in CA.

Latest California Poker News

Can Players from California Play Online Poker?

Yes. Although online Internet poker will likely not be regulated by the state of California for another year, players are free to sign up with over a dozen real-money poker websites offering real money poker gambling to United States citizens, which is great news for poker gambling fans. Compare this to other states, like New York and Washington that make it difficult for players to start betting on Internet poker anywhere.

Is Online Poker Legal in California?

Although we are not an authority on the legality of Internet poker in California, we have researched this issue extensively. Listed below are several points of interest concerning 2020‘s current California real cash gambling laws:

• Online poker is not regulated by the state of California.
• Commercial casinos are authorized by the state of CA, however games where the outcome of each bet is determined by dice alone, such as craps, cannot be operated by card rooms that offer games like real money poker.
• Tribal casinos are authorized by the state and can house non-card games like craps.
• Sports betting is not authorized by the state of California.
• Various forms of lotteries are authorized by the state
• All forms of real money poker gambling are authorized by the state, except online Internet poker.
• There is no California law directly prohibiting or criminalizing the act of placing a wager at a poker websites online.
• Internet horseracing is authorized.

New Bills Introduced To Congress

For a more comprehensive look at California gambling laws, interested parties are encouraged to read the latest edition of the Gambling Law, Regulations, and Resource Information – 2020 edition ^[1].

Poker players in California are advised to research the CA state laws before concluding as to whether online Internet poker is legal or not. Remember, there is a distinct difference between something being ‘prohibited’ and ‘non-regulated.’ Brian Mickers wrote a great article on the topic of lawful poker websites; one that provides in-depth insight into the issue of Internet poker [2].

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Recent Developments

In 2013, three separate pieces of real cash Internet poker legislation were introduced in California. They were:

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• SB 51 – Senator Roderick Wright’s “Internet Gambling Consumer Protection and Public-Private Partnership Act of 2013”
• SB 678 – Senator Lou Correa’s “Authorization and Regulation of Internet Poker and Consumer Protection Act of 2013”
• The Internet Poker Consumer Protection Act of 2013 – An online poker bill sponsored by eight California tribes.

The Internet Poker Consumer Protection Act of 2015 was filed by Assemblyman Mark Gatto. The bill would legalize Internet poker but keep the ‘bad actor’ clause which bans poker operators who have violated the law before.

Besides Gatto’s 2015 Act, the he aforementioned lawful poker bills have all failed to generate much momentum in government, largely because of the influx of infighting among California State’s varied gambling interests at the time. Tribal casinos enjoy several tax advantages in the real money betting world, and may not be willing to give up a piece of revenue generated through real cash poker website profits. They’re also adamantly against interstate compacts and racetrack participation. Others feel that online Internet poker companies should only be allowed to operate through card rooms based in CA and bring betting fans a slice of the Internet Texas Hold’em action.

That, and there was little evidence from other states besides California as to the viability of a lawful Internet poker market.

Joe Correa made SB 678 severable. This means that if any portion of the gambling websites bill is deemed unacceptable it can be made invalid immediately. By taking this urgent measure, Correa hoped to get SB 678 enacted into law before the September 6, 2013 deadline. It didn’t work, and the issue of legit real money Internet poker was put off until 2014 [3].

Then, at the February 2014 legislative deadline, two new poker gambling website bills were introduced:

• SB 1366: Effectively a rehash of SB 678; backed by San Manuel Band of Mission Indians
• AB 2291: Introduced by Assemblyman Reggie Jones-Sawyer, AB 2291 is essentially the assembly version of SB 1366.

Unfortunately, all parties could not reach an agreement about the terms of the new regulations before the end of the 2014 session, meaning the bills were dumped.

Recent Bills Introduced

In December 2014, Assemblyman Mike Gatto took over the online poker cause and filed a new bill, AB9. Its full title is the Internet Poker Consumer Protection Act of 2015 and it aims to bring regulated legal online poker to CA.

Notable aspects of the bills include:

• The real cash poker Internet bill would require provisions that would ensure the safety of player funds.
• The minimum age to play online Internet poker in the state of California would be 21.
• Players must be located within the State of California in order to start gambling on real money poker websites.
• Betting companies that violate federal law would not be permitted to set up poker gambling and casino operations.
• All online poker website software would have to include self-exclusion features such as loss limits and time-outs for real cash poker players to implement themselves.
• Licenses for real money Internet poker would be valid for 10 years, non-transferable and cost $5 million.
• Regulations would go into effect within 270 days of passage.

The Facts

The History of Gambling in California

1850

1850

Even before California became a state, card rooms have been up and running since 1850. These were also known as “California Casinos” or “Card Clubs”.

1933

1933

California’s gambling industry grew in 1933, with the introduction of horse race wagering. The California Constitution was amended for this to take place and 6 major horse racetracks were introduced to the state. In addition, over 30 off-track betting locations were spread throughout the state.

1984

1984

Due to Proposition 37, State lottery was introduced to California, which has been incredibly successful to this day.

1988

1988

The ‘Indian Gaming Regulatory Act’ was the main reason why gambling became even more popular throughout the State in the late 90’s. As a result of this, negotiations began with tribes (more than 50) and Bingo type games were the premise of these negotiations.

2000

2000

A law was passed in this year which fully legalised casino gambling on tribal lands. This gave the tribes an opportunity to negotiate their compacts and come to an agreement of what machines and table games they can offer in their casinos.

2010

2010

With the rise of internet gambling , California joined the craze and introduced horse racing betting over the internet. Which ultimately led to other forms of internet gambling being introduced in the near future.

2012

2012

The Californian Senate had a busy year with various bills to legalize and regulate online poker being put forward. It wasn’t clear whether the tribes would be a part of regulating and licensing online poker operators, but the idea was definitely being pushed forward.

2014

2014

Due to other states in the country legalising online poker, California was beginning to look like the next one on the list as two more bills were introduced to the Senate. Online poker is still up in the air in this state, but it is showing signs of potential for the near future.

California’s gambling roots can be traced all the way back to the gold rush and the ever popular Texas Hold’em poker game. As early as 1850, the predominately male population of prospectors and miners in CA demanded a masculine form of entertainment. Within mere months, licensed and unsolicited card rooms offering real cash poker games began popping up everywhere. Throughout the next several decades gambling’s popularity died down in California, not re-emerging until the early 1930’s.

In 1907, the Santa Anita Park – one of the most prestigious horseracing tracks in the entire world – opened its doors. However, it wouldn’t be until 1933 that real money gambling on horseracing was legalized in CA. Its legalization caused the relatively dormant poker betting and casino gambling industry to thrive. With the passing of a proposition in 1984 that legalized a statewide lottery, gambling became somewhat of a leisurely, everyday activity for real cash poker fans in CA and for other betting fans.

Around this time countless casinos were constructed; many of them home to poker rooms featuring upwards of 100 to 200 tables and offering classic Texas Hold’em real money poker games and many other popular poker variants. At 240 tables strong, the Los Angeles Commerce Casino [4] houses one of the largest poker gambling rooms not only in California but in the entire world.

Native American owned casinos became popular in the early 2000s. Tribal casinos enjoy several distinct advantages over traditional real cash legit poker card rooms including tax regulation, governing lease arrangements and the ability to offer legal gambling games besides real money poker, such as craps and roulette.

Poker players in California have a good chance of eventually being able to play poker online at legal US poker rooms.

Regulated Gambling Options In California

California is home to more gambling facilities than every state in the US outside of Nevada. It features over 100 legal poker card rooms, 68 tribal casinos, six racetracks and over 21,000 retail outlets licensed to sell lottery tickets. All told, citizens of the Golden State can rarely walk a block without running into some sort of lawful gambling outlet.

The Future Of Regulated Online Gambling In California

Right now, residents of California are permitted to engage in Internet betting on horseracing. All other forms of gambling, including online Internet poker for real cash, are not regulated by the state in 2020. However, it does appear that most of the CA State’s gambling powers are finally on board with online Internet poker-only website legislation. Expect them to come to terms shortly.

The Bottom Line

Given its massive population, if California passes legislation legalizing online poker in The Golden State the Federal Government would be forced to notice – especially if it decides to hold firm on its stance regarding interstate compacts. In fact, some say that California could easily dominate the real money Internet poker website market.

California will undoubtedly enter the Internet poker and gambling arena at some point. The real question is when the legal poker and casino betting websites will start to hit the web. Before PokerStars re-entered the picture, it appeared as though CA State was on target for a mid-2015 launch of legit Internet poker. Now, whether legal online poker comes to California depends on how quickly rival factions can come to terms regarding the inclusion or exclusion of a bad actor clause.

References

[1] ↑ California – Gambling Law, Regulations, and Resource Information

[2] ↑California Online Poker Bill Filed Away Until Next Year

[3] ↑The Commerce Casino and Hotel

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