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California
lnternet Poker Legislative Analysis
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s|n||ar|t|es and d|erences between
two new|y-|ntroduced nternet poker
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Overview
Tribal Caning Coalition Menbership Map
5unnary: ABZZI
5unnary: 5BIS
Conparison: ABZZI And 5BIS
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Fesearch Director North Anerica
Chrisganblingconpliance.con
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On February ZI, two new lnternet poker
bills were introduced, paving the way for
continued stakeholder discussion and,
potentially, conpronise.
The hrst bill, ABZZI, is sponsored by
Denocratic Assenblynan Feginald ones-
5awyer. ones-5awyer is working with a
tribal ganing coalition, conprising eight
politically powerful tribal governnents,
headed by the Pechanga Band of Luiseo
lndians. The second bill, 5BIS, is sponsored
by Denocratic 5enator Lou Correa. Correa
is working with a tribal ganing coalition,
conprising hve politically powerful tribal
governnents, headed by the 5an Manuel
Band of Mission lndians.
The two bills, although broadly sinilar, difer
in four key respects.
Firstly, ABZZI would take a narrower
approach than 5BIS to operator license
eligibility, partly in an attenpt to preclude
eligible California tribes and California card
roons fron beconing so-called "false fronts"
for certain outside entities. 5pecihcally, under
ABZZI, a California tribe or California card
roon would be eligible for operator licensure
only if it had operated its land-based ganing
facility for the hve-year period innediately
preceding its lnternet poker license-
application date. 5BIS, by contrast, has no
such restriction.
5econdly, the two bills take diferent
approaches to the treatnent of so-called "bad
actors," or entities that fornerly accepted or
facilitated the acceptance of unauthorized
.5. lnternet wagers. ABZZI would prohibit
entities that accepted California lnternet
wagers, prior to a date still to be deternined,
fron contracting with licensed operators.
5BIS, neanwhile, would prohibit entities
that knowingly and willfully accepted .5.
lnternet wagers after Decenber SI, Z00,
fron contracting with licensed operators.
Although not rehected in ABZZI, the
Pechanga coalition has agreed to use
Decenber SI, Z00, as its bad-actor cut-of
date, CanblingConpliance has learned.
Thirdly, ABZZI would take a narrower
approach than 5BIS to the nunber of
lnternet poker websites a licensed operator
could deploy, partly in an attenpt to linit
prospective conpetition fron certain
outside entities. ABZZI would linit licensed
operators to deploying a still-to-be-
deternined nunber of websites. 5BIS, by
contrast, expressly pernits licensed operators
to deploy an unlinited nunber of websites.
Fourthly, the two bills set out diferent
license-fee and ongoing-fee schedules for
licensed operators and suppliers. ABZZI
would require licensed operators to pay a
one-tine license fee of S5n, plus 5 percent
of their lnternet poker gross ganing revenue
on a quarterly basis. Fees for licensed
suppliers have still to be deternined. 5BIS,
neanwhile, would require licensed operators
to pay a one-tine license fee of SI0n, plus
a still-to-be-deternined percentage of their
lnternet poker gross ganing revenue on a
nonthly basis. Fees for licensed suppliers,
likewise, have still to be deternined.
The two coalitions net twice in anuary to
resolve these diferences and others. But four
5an Manuel coalition nenbers declined to
attend a February neeting, cooling relations
that were perceived to be warning. 5till,
ABZZI is expected to be taken up this spring
by the Assenbly Covernnental Organization
Connittee. All bills nust pass by August SI.
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5ource. Canb||nqConp||ance Fesearcn 5erv|ces lebruary Z0l4 (Locat|ons Approx|nate)
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Pechanga Coalition Caning Facilities
I. Pechanga Band Of Luiseo lndians
Z. Agua Caliente Band of Cahuilla lndians
S. Yocha Dehe Wintun Nation
4. Lytton Fancheria
5. Barona Band Of Mission lndians
. 5ycuan Band Of The Kuneyaay Nation
7. vie|as Band Of Kuneyaay lndians
8. Paskenta Band Of Nonlaki lndians
5an Manuel Coalition Caning Facilities
I. 5an Manuel Band Of Mission lndians
Z. Morongo Band of Mission lndians
S. nited Auburn lndian Connunity
4. Fincon Band Of Luiseo lndians
5. Pala Band Of Mission lndians
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Cities
I. 5acranento
Z. 5an Francisco
S. Los Angeles
4. 5an Diego
!"7<-$3/%9 8<3'/%+39 The California Canbling Control Connission (CCCC) would regulate lnternet poker and license operators
The California Departnent of ustice (CDO) would undertake specihc investigatory and enforcenent duties
"Tribal Fegulatory Authorities" would assist the CCCC and the CDO with the licensing and oversight of tribal lnternet poker businesses under their |urisdiction
D9H"# B. E$F"# Poker, including poker tournanents
8<3'/%+I"J BH"%$3/%# Qualihed federally recognized California lndian tribes
California card roons
Consortia conprising any of these entities
BH"%$3/% 6+&"0#+07 Within Z70 days after the bill's efective date, the CCCC, as well as other state agencies with duties pursuant to the bill, shall adopt regulations
All entities seeking licensure to operate lnternet poker nust apply to the CCCC
All entities seeking licensure to operate lnternet poker nust have operated their land-based ganing facilities for 5 years prior to their application dates
The CCCC shall deternine an applicant's eligibility within 0 days of receiving its application
Licenses shall be issued for a tern of I0 years and be autonatically renewable at the expiry of the I0-year period
BH"%$3/% :""# 80J D$K$3+/0 A one-tine license fee of S5n; additionally, all licensees shall pay 5 percent of their gross ganing revenue (CCF) to the state on a quarterly basis
)<HH-+"% 6+&"0#+07 "5ubcontractors," or entities that, anong other things, provide goods and services to a licensed lnternet poker operator, nust apply to the CCCC
Licenses shall be issued for a tern TBD, with renewal requirenents TBD
)<HH-+"% :""# A one-tine license fee of TBD
E/L6+*" M$3" All licenses shall take efect on anuary I, Z0I5; all licenses issued after anuary I, Z0I5, shall take efect on the date issued
87" !"#3%+&3+/0# Persons ZI years of age or older located in California
203"%#3$3" E$F;-+07 The bill would require California to opt out of, and decline to opt into, any federal lnternet poker schene; additionally, the bill would bar California fron
participating in any lnternet poker agreenents with other states and foreign nations, in the event such agreenents are authorized under federal law
N$JL8&3/% 4%/*+#+/0# Licensees shall not enter contracts or agreenents with entities that have accepted wagers fron persons in California on any forn of lnternet ganing prior to a
date TBD; intellectual property used in the acceptance of such wagers prior to a date TBD would also be banned
O/P B. Q";#+3"# 8<3'/%+I"J Licensed lnternet poker operators nay deploy a TBD nunber of websites
4%/;-"F E$F;-+07 The regulations adopted by CCCC shall address underage and problen ganbling
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!"7<-$3/%9 8<3'/%+39 The California Canbling Control Connission (CCCC) would regulate lnternet poker and license operators
The California Departnent of ustice (CDO) would undertake specihc investigatory and enforcenent duties
"Tribal Fegulatory Agencies" would assist the CCCC and the CDO with the licensing and oversight of tribal lnternet poker businesses under their |urisdiction
D9H"# B. E$F"# Poker, including poker tournanents
8<3'/%+I"J BH"%$3/%# Qualihed federally recognized California lndian tribes
California card roons
Consortia conprising any of these entities
BH"%$3/% 6+&"0#+07 Within IZ0 days after the bill's efective date, the CCCC, as well as other state agencies with duties pursuant to the bill, shall adopt regulations
All entities seeking licensure to operate lnternet poker nust apply to the CCCC and, if applicable, a Tribal Fegulatory Agency
Ownership changes in an entity seeking licensure to operate lnternet poker do not disqualify it fron seeking such licensure if (i) the changes were nade
during the S years innediately preceding its application date and if (ii) the changes do not alter its ownership qualihcations
Licenses shall be issued for a tern of I0 years and be autonatically renewable at the expiry of the I0-year period
BH"%$3/% :""# 80J D$K$3+/0 A one-tine license fee of SI0n; additionally, all licensees shall pay TBD percent of their gross ganing revenue (CCF) to the state on a nonthly basis
)<HH-+"% 6+&"0#+07 "5ervice Providers," or entities that, anong other things, provide goods and services to a licensed lnternet poker operator, nust apply to the CCCC
Licenses shall be issued for a tern of I0 years and be autonatically renewable at the expiry of the I0-year period
)<HH-+"% :""# A one-tine license fee of TBD
E/L6+*" M$3" "lnitial Licenses" shall take efect on the sane date, TBD by the CCCC, but not later than I year after the bill's efective date
87" !"#3%+&3+/0# Persons ZI years of age or older located in California
203"%#3$3" E$F;-+07 The bill would preserve the authority of California to opt out of or into any federal franework for, or any interstate agreenents for, lnternet poker
N$JL8&3/% 4%/*+#+/0# Licensees shall not enter into contracts or agreenents with entities that have knowingly and willfully accepted .5. wagers on any forn of lnternet ganbling after
Decenber SI, Z00; intellectual property used in the acceptance of such wagers after Decenber SI, Z00 would also be banned
O/P B. Q";#+3"# 8<3'/%+I"J Licensed lnternet poker operators nay deploy an unlinited nunber of "Poker Foons" and "5kins"
4%/;-"F E$F;-+07 The regulations adopted by CCCC shall address underage and problen ganbling
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!"7<-$3/%9 8<3'/%+39 CCCC, CDO, Tribal Fegulatory Authorities CCCC, CDO, Tribal Fegulatory Agencies
D9H"# B. E$F"# Poker, including poker tournanents Poker, including poker tournanents
8<3'/%+I"J BH"%$3/%# Qualihed federally recognized California lndian tribes
California card roons
Consortia conprising any of these entities
Qualihed federally recognized California lndian tribes
California card roons
Consortia conprising any of these entities
BH"%$3/% 6+&"0#+07 )3+H<-$3+/0# All entities seeking licensure to operate lnternet poker nust have operated
their land-based ganing facilities for 5 years prior to their application dates
Ownership changes in an entity seeking licensure to operate lnternet poker do
not disqualify it fron seeking such licensure if (i) the changes were nade during
the S years innediately preceding its application date and if (ii) the changes do
not alter its ownership qualihcations
BH"%$3/% 6+&"0#" D"%F I0 years, autonatically renewable I0 years, autonatically renewable
BH"%$3/% :""# 80J D$K$3+/0 One-tine S5n license fee; 5 percent of CCF One-tine SI0n license fee; TBD percent of CCF
)<HH-+"% 6+&"0#" D"%F TBD I0 years, autonatically renewable
)<HH-+"% :""# TBD TBD
E/L6+*" M$3" anuary I, Z0I5 lnitial Licenses to take efect not later than I year after bill's efective date
87" !"#3%+&3+/0# Persons ZI years of age or older located in California Persons ZI years of age or older located in California
203"%#3$3" E$F;-+07 Would prohibit California fron opting into any federal franework for, or any
interstate or international agreenents for, lnternet poker
Would preserve the authority of California to opt out of or into any federal
franework for, or any interstate agreenents for, lnternet poker
N$JL8&3/% 4%/*+#+/0# nsuitable if accepted unauthorized California lnternet wagers prior to a date
TBD; bans intellectual property used in such wagering
nsuitable if accepted unauthorized .5. lnternet wagers after Decenber SI,
Z00; bans intellectual property used in such wagering
O/P B. Q";#+3"# 8<3'/%+I"J TBD nlinited
4%/;-"F E$F;-+07 To be addressed by CCCC in regulation To be addressed by CCCC in regulation
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