​Online poker legalization bid returns to Capitol

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Shawn Hempel

In every legislative session since 2008, a group of bills have surfaced to legalize online poker in California. Next year, Assemblyman Mike Gatto will step up to the table with a legalization proposal he views as a strong hand.

Allen Young

Staff Writer- Sacramento Business Journal

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In every legislative session since 2008, a group of bills have surfaced to legalize online poker in California. Next year, Assemblyman Mike Gatto will step up to the table with a legalization proposal he views as a strong hand.

The structure outlined in Assembly Bill 9 seeks to correct problems that have plagued prior efforts. Concerns have included underage play, money-laundering and business effects on card rooms and casinos.

Gatto proposed to require online poker players to physically register at designated branches that would likely be stationed within existing casinos and card rooms. The player would need to submit identification at the branch and make an initial deposit there. Big winnings would also be cashed out at the branch.

The system would bring foot traffic to smaller casinos that can't benefit from online operations, said Gatto, a Los Angeles Democrat.

"I think this expands the pie for various gaming industry participants. This is a nice way to become an outlet or branch to the system as a whole," said Gatto.

The legislator believes that online poker is inevitable in California because of the demand and the recent trend of disruptive technologies opening new markets despite cries from competitors.

"I don't think that march of technology can be halted forever," he said.

The legislation still faces political risk, however. AB 9 contains one of the same provisions that hurt prior legislation: a bad-actors clause that prohibits gaming interests from participating in the new system if they benefited from illegal Internet poker in recent years.

In 2006, Congress outlawed online poker . Since then, some operations used offshore accounts to continue online gaming — and certain California tribes have some level of involvement.

Allen Young covers state legislation, regulation and contracts, as well as economic news, international trade and economic development for the Sacramento Business Journal.