TO: FROM: DATE: RE:

Members of the Legislature Robert H. Smith, Chairman August 15, 2011 Opposition to Action on Internet Poker Legislation This Legislative Year

On behalf of the member tribes of the California Tribal Business Alliance, I am writing to express our opposition to the Legislature taking action on intrastate internet poker legislation during the final month of the legislative year. From CTBAs vantage point, there are too many unanswered questions and differing points of view with respect to the two legislative proposals that are currently before the Legislature, SB 40 (Correa) and SB 45 (Wright). To adequately address the questions and concerns raised by a broad array of groups will require much more time than what is currently available during the remainder of the legislative calendar. CTBA believes it is best for the Legislature to utilize the Interim to exercise greater due diligence and consult with all of the interested stakeholders to develop a new consensus bill for introduction, perhaps, next year. A bill that does not provide preferential treatment to any one specific group; is narrowly crafted to apply only to intrastate internet poker; does not undermine tribal sovereignty or existing tribal-state gaming compacts; prevents the proliferation of internet gaming cafes; and one that provides adequate time for the regulatory structure to be implemented to protect the integrity internet gaming. These are just a few of the significant issues that need to be addressed in any intrastate internet gaming authorization bill. Even though there have been hearings on the matter of intrastate internet poker, many fiscal, legal, technical and policy related questions must be resolved before adoption of any intrastate internet gaming legislation. There are numerous stakeholders who stand to be irreparably harmed should legislation be ram-rodded through this legislative year and this surely would be a disservice to ALL Californians, Tribal and Non-Tribal, alike. For these reasons, we believe the Legislature should not take any action on intrastate internet poker legislation during the final month of the legislative year and should instead opt to utilize the Interim to work with all interested parties to develop a consensus bill.

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