Bill For California-Only Online Poker Introduced by Levine

California state Assemblyman Lloyd Levine, D-Van Nuys, has introduced bill AB2026 to exploit a loophole in the federal law that could bring online poker back to Californians.

The bill would order the California Gambling Control Commission and the Department of Justice to study the federal law, the Unlawful Internet Gambling Enforcement Act (UIGEA) that attempted to ban Internet poker for US residents, and to explore whether a California-based online poker service might be legal.

If it is legal, then California would be able to regulate it and presumably get revenues from it.

"Our understanding of the law is that so long as the player and server (hosting the online game) are in California, it would be legal. But that's what we are trying to find out," said Levine in the Capitol Weekly, California's newspaper that focuses on California state government and politics.

PPOA SPONSORED THE BILL

A group called the Poker Players of America (PPOA) has sponsored the bill. According to their Web site, the organization is "American as apple pie- free Americans joining together to fight for their right to play the All-American game of poker!"

They claim they are the "first independent national organization of American of poker players dedicated to ONE THING- protecting our right to play online and in live games."

They add, "Founded and guided by experienced political professionals who also play poker, PPOA has been created to provide information, mobilization and coordination of legislative/political action programs necessary to make the voices of Americas millions of poker players heard."

The passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006 has had a profound negative effect on online poker worldwide. In 2006, the main event at the World Series of Poker had more than 8,700 participants. A year later, after the Internet ban took effect, that number dropped to 6,358, reducing the grand prize of the tournament from $12 million to $8 million.

Supporters of UIGEA claimed online gaming made an easy front for money-laundering, and also abused children and gambling addicts. Just before passage of UIGEA, upwards of 23 million American poker players bet $6 billion per year online, accounting for half or more of the worldwide market, according to analyses by the Congressional Research Service.

MUCH TO BE DETERMINED- PROVE YOU ARE IN CALIFORNIA!

But there are many details yet to be defined. Who would run this service? How would credit card companies discern a legitimate player from a banned player, as they currently use a gaming code to turn away online gamblers today?

How would California card club operators, who currently host legal live poker games, react to online poker in California? Would they go through the realization, like the casino industry at large did earlier with the advent of online poker, that online poker ultimately brings more players to the felt at live casinos? Or would they lobby to stop online poker in CA. before it gets off the ground?

If there is a California-only online poker service, Levine noted that online gamers may need to acquire a "GPS add-on" to prove they are really located in California.

The Capitol Weekly article also pointed out that because "poker is considered a Class 2 game, a game in which players play against each other instead of the house, Indian tribes would be able to operate these state-only online poker sites without renegotiating their compacts with the governor."

ULTIMATE STATE CONTROL

But Levine stresses that a one-state system allows the Legislature and ultimately the governor to control decisions about these issues.

"It would be regulated," said Levine. "We don't know what the state's piece will be, but it will be a regulated entity."

Using reasoning that echoes what Sweden and other government monopolies have given to the European Union, Levine said that if online gaming were operated by state-controlled interests, it would ensure consumer protection for Internet gamblers.

"If you're gambling in California with one of these offshore sites, and they just decide not to pay you, you're out of luck," Levine said. "If you play legally, then there is recourse."

For now, Levine and his staff are trying to determine the legality and the feasibility of such a system. But Levine said if it seems viable, his bill could evolve from a 'study bill' into an actual push to re-legalize Internet poker in California.

Click here for original article in the Capitol Weekly, by Anthony York.

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