Regulation to prevent money laundering
Segregated accounts to protect player deposits
The PPA has over 100,000 members who reside in California
, many of whom have sentletters, placed phone calls and sent tweets to the Governor urging his support of a fair,regulated environment to play online poker in the state.
In an age where the Internet has become such an integral part of our daily lives, wemust
uphold the personal freedoms of California residents to play the game
they enjoyin any format they prefer.
Regulation will provide significant economic benefits for the state
Given the potential size of the California online poker market, the state stands to gain asignificant new revenue stream. This could mean
hundreds of millions of dollars in newrevenue annually without raising taxes!
Establishing California as a national (and perhaps global) leader for Internet poker willalso create thousands of high paying, high-tech jobs for the state of California.
Thestate already has a deep commitment to Internet innovation. Regulated Internet pokerwould produce a new avenue for research, investment and California-led innovation forthis burgeoning industry.
California’s population base and history as a strong gaming regulator
uniquely positionsthe state to lead this innovative new industry and help run the operations for otherstates that will want to adopt similar structures moving forward.
These INTER-stateagreements will create even more revenue for California.
California regulation must foster competition and be consumer, not business, driven
The recent Internet poker debate in California has been dominated by how business willbenefit from the new marketplace. Profitability and a pro-business environment areimportant, however, this can only be achieved in a consumer-friendly market.
Ultimately, the end user (the poker player) will decide the future success or failure of Internet poker in California and the state must
foster a competitive market thatprovides the consumer choice and incentives to attract customers.
We support low taxes for operators.
Tax on revenue should be based on adjusted grossrevenue, after deducting jackpot payouts, player bonuses and other player incentives.Fair and equitable tax rates will reduce the pressure for operators to pass on these costsi
n the form of “fees” or “rake” to the consumer. Reasonable taxes will increaseprofitability, and therefore increase the state’s taxable base.
We also support a reasonable advanced deposit license fee
that will reduce the barrierto entry and allow more companies to have access to the market.
This will helpencourage small, yet innovative start-up companies to invest and compete in themarket.