The big issues standing in the way of California passing an online poker bill this year remain whether to allow race tracks into the industry and the “bad actor” clause. Regarding the latter, many California tribes have previously voiced their opinion that PokerStars is a bad actor, meaning they shouldn’t be allowed in the iPoker market because they participated in unlawful iGaming beyond 2006 (when the UIGEA passed).
Well, it appears that three tribes have recently changed their stance in hopes of furthering legislation along. The Pala Band of Mission Indians (owners of Pala Interactive), Rincon Band of Luiseño Indians (partners with Caesars Interactive) and the United Auburn Indian Community (partners with Bwin.Party) wrote a letter to Assemblymen Reggie Jones-Sawyer and Mike Gatto – both of who’ve authored their own separate iPoker bills – expressing a softened stance on the bad-actor clause. That said, let’s discuss what’s great about this along with the downside of their sudden revelations.
The Good
Given that PokerStars has the state’s three biggest card rooms along with a few tribes behind them, it’s obvious that the bad-actor debate figures to be a stand-off again this year. So the fact that three more poker sites have joined Stars’ cause raises more optimism that an online poker bill might finally pass.
Another positive here is that Stars could finally gain a foothold in the United States. Previously, they’ve been shut out of Nevada and New Jersey (so far), which is not only anti-competitive, but also denying Americans the right to play on the world’s biggest/best site. Going further, having Stars in the market could really force other iPoker rooms to bring their best product, or risk getting trampled.
The Bad
As mentioned above, three tribes joining PokerStars’ cause creates a sense that all sides might finally come together. But on the other hand, it could also further separate the divide on the bad-actor issue. After all, the Pechanga Band of Luiseño Indians and Agua Caliente Band of Cahuilla Indians are staunch opponents of lessening the bad-actor clause or letting race tracks into the equation. Journalist Dave Palermo, who’s an expert on American Indian government, echoed this sentiment by writing the following on Pechenga.net:
“The decision last week by three California tribes to embrace licensing racing associations and softening ‘bad actor’ language in proposed Internet poker legislation will not increase the long odds of getting a bill out of the state Legislature. Quite the contrary, many believe an at times heated gathering of tribal leaders at Harrah’s Rincon Resort Thursday may have driven a wedge between tribes that will make it difficult, if not impossible, for tribes to reach consensus.”
Gatto doesn’t exactly inspire confidence that a bill will pass in 2015 either after stating, “I’m less optimistic that it will get done this year.” This is a bit disheartening, given that Gatto previously thought there was a 50/50 chance of legislation passing. But on the other hand, there’s still a lot of time in 2015 for all sides to get something worked out and clear the way for California online poker.