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Legalizing online poker could boost state revenue without promoting underage gaming or cutting into casino foot traffic, California Assemblyman Mike Gatto, D-Glendale, said Tuesday.
Gatto introduced legislation yesterday proposing a regulatory structure that he said would address concerns from outside the gaming industry and “expand the pie” to bring competing interests onboard.
“The status quo is a lost opportunity,” Gatto said. “California could receive significant revenue for merely regulating and legitimizing an industry that Californians already participate in but send their dollars overseas.”
In a recent policy change, the Department of Justice allowed states to legalize online poker. Delaware, Nevada and New Jersey have all done so.
Gatto estimated that 2 million Californians regularly play poker, which is migrating online. Foreign-based online games accept California players, though such play is illegal, according to the assemblyman.
Gatto proposed requiring players to open accounts in person using two forms of identification. Large or frequent cash-outs also would require an appearance in person, to limit underage gaming and discourage financial criminals.
“California has led the world in computer and Internet innovation, and there is no good reason why we can’t continue to lead with a sensible online poker framework,” Gatto said.
The issue has been debated among state legislators for years and faces opposition from brick-and-mortar gaming interests, including billionaire casino owner Sheldon Adelson.
In August, outgoing Sen. Lou Correa, D-Santa Ana, shelved his proposal to legalize online poker, saying there was not enough time to garner sufficient support for a vote by yearend. Another Assembly bill failed in committee last month.
— City News Service