Legal online poker in California is checked, at least for now

[clevfan]

September 5, 2008

Legal online poker in California is checked, at least for now

Mort Saltzman
Sacbee.com

I had an interesting chat over coffee this morning with a chap by name of Jim Tabilio, whose Poker Voters of America is pushing legalized online poker in California, and elsewhere. Tabilio's job in real life is senior vice president for public affairs for Winning Directions, a direct mail marketing firm with offices in five cities, including Sacramento. But he's also an amateur who has played in the last five World Series of Poker events in Las Vegas. He loves the game and says flatly, he has never played online poker for money at the myriad Web sites based all over the world, except the United States where the Department of Justice has ruled it is illegal, a violation of a1961 law.

But armed with an opinion from the California Legislative Counsel's office that online poker operated within California and played by people within the state could be authorized by the Legislature -- much like the many poker parlors in the state -- Tabilio has written a bill (AB 2026) sponsored by Assemblyman Lloyd Levine aimed at just that.

Why would the Legislature do this? I asked. And what about the powerful Indian casinos in the state? Won't they fight this tooth and nail. Tabilio is quick with his responses.

No. 1, Tabilio says, California needs money and he roughly estimates that the state government could receive $120 million to $150 million annually in new gross revenues from the operators of legalized online poker. There would be expenses incurred in regulating and overseeing this but Tabilio feels the growth potential is enormous, particularly as the cost of gas continues to rise and the expense of travel grows and grows.

No. 2, Tabilio acknowledges that there is no way he can persuade all the various California Indian interests to support this legislation but he feels that it would be in the self-interest of many of them to get on board. He points out accurately that many smaller Indian tribes in California are in remote areas and can't afford to build competitive casinos. Revenues for the big guys are down right now and there is limited capacity for their growth, he says. Online gambling is expanding and it behooves the Indian casinos to get involved.

Tabilio asked Levine to put the bill on hold for now -- the Legislature calls that the inactive file -- but Tabilio expects to meet next year with a variety of special interests, including the Indian gamers, to lobby this bill and move it forward.

There's a lot more to write on this subject but just like AB 2026, I will put it in the inactive file for now.