California's legalization of online poker took a step forward Wednesday afternoon, with the Congressional Government Organizing Committee unanimously passing AB 2863.
This is the second year in a row that a state legislative committee has passed a bill to regulate online poker. The bill is now headed to the full assembly.
Proposed and sponsored by its chairman, Adam Gray, the bill received unanimous support last week from the U.S. horse racing industry, which has historically opposed online poker legislation. However, AB 2863 promises to provide a $60 million grant to the horse racing industry, instead of abandoning its ability to operate its own online poker site.
"The question of how to regulate iPoker has been before the legislature for almost a decade," Gray said in a press release after Wednesday's vote. "We have not rushed this process. We have had the time necessary to fully understand and respond to the concerns raised by stakeholders. Through this process, we have created a coalition that recognizes the problem and supports a comprehensive solution."
Gray also cited the need for consumer protection in California, noting that millions of residents are already playing online poker on unregulated sites offshore.
"We are clear that Californians are playing these games online every day on websites that offer no consumer protection at all," Gray said.
The bill would require the California Gambling Commission to draft regulations for online poker sites that operate in consultation with the California Department of Justice.
In a question that followed yesterday's testimony, Gray said the next step toward addressing the bill was suitability, promising that it would be updated in conformity language until it was voted on by the full Congress. The strongest opposition to the bill, centered on the California Tribal Department, is that there is no "bad actor" provision to prevent companies like PokerStars from operating in the state. PokerStars operated illegally in the U.S. market after the 2006 Illegal Internet Gambling Enforcement Act was passed.