For a moment it looked as though online poker could become legal in California. But SB 1485, the California Online Poker Law Enforcement Compliance and Consumer Protection Act, was dealt a swift surprise defeat.  It is especially surprising considering that it was estimated that the passage of the bill would bring in $500 million annually, one quarter of the state’s estimated $2 billion deficit. 

At first glance the bill had a lot to offer the cash strapped state, so why did Senator Rob Wright quickly withdraw the bill? Essentially, the bill was opposed even by most poker players and poker lobbying organizations. That’s because the bill would have authorized the Department of Justice to grant three contracts to companies to operate California licensed online poker sites. 

California would accommodate three poker hubs, licensed by the state of California for a five year term to set up and operate online gambling sites. However, anyone in California playing poker at another site, including the most popular sites such as PokerStars and FullTilt Poker would have been guilty of a state crime.  Page two of the bill read “The bill would provide that it would be unlawful for any person to play any gambling game provided over the Internet that is not authorized by the state pursuant to this bill. By creating a new crime, this bill would impose a state-mandated local program.”

So now it is back to the drawing board. Online poker remains a murky legal matter in the United States. Many legal experts believe that online poker is illegal under the federal Wire Act and the Unlawful Internet Gambling Enforcement Act (UIGEA), but other legal experts dispute the illegality of poker. Either way, surveys indicate that over 750,000 Californians and 10 million Americans play online poker already, and it certainly appears that they are not being prosecuted.

This is an issue that is continuing to evolve. Sen. Barney Frank has pushed to pass a law that would legalize online poker nationally. While President Barack Obama has professed to be a fan of the game and a poker player himself, he has not indicated that he is in favor of legalizing it or that it is a matter on his already packed agenda.

Related Resources:

  • California Poker Bill Defeated - Bad News or Not? (pokerroomreview.com)
  • California Online Poker Bill to be Debated Tuesday (pokernewsdaily.com)
  • SB 1485 (Full Bill)

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