The march toward Internet gambling in California came to an abrupt halt this week after the state’s gaming tribes announced their opposition to an online wagering bill by Democratic State Sen. Roderick Wright of Inglewood.

Even the Morongo tribe, which launched the movement for Internet poker legislation in California and initially supported Wright’s bill, joined the opposition in a letter issued Monday by the Tribal Alliance of Sovereign Indian Nations (or TASIN).

“By legalizing a potentially broad spectrum of online gaming, (Wright’s bill) could significantly and permanently expand and alter the landscape of gaming in California,” said the letter from TASIN, which represents 11 federally recognized Indian tribes, including some of the state’s most successful gaming groups.

Calls and e-mails to Wright’s office were not returned.

Michael Lombardi, a gaming commissioner with the Augustine Band of Mission Indians – a TASIN member – said Wright’s bill goes too far and would allow California’s gambling dollars to flow to operators outside the state. 
 
“Senator Wright has done something that’s never been done before – he’s united California’s tribes,” Lombardi said. “I have not heard one of California’s 110 tribes say this bill is a good idea.”

Lombardi said Wright’s bill is dead this year, but the Internet gambling debate will resume in earnest after the November elections when a new governor is elected.

“Senator Wright will continue to be a force in this debate because he is the most knowledgeable member of the legislature on this issue,” Lombardi said.

“But I think we will see other members step forward and offer their own Internet gambling bills next year,” he said.

Lombardi compared the Wright bill to legislation in Congress by Rep. Barney Frank, D-Mass., that would repeal the Unlawful Internet Gambling Enforcement Act of 2006 and require the U.S. Department of Treasury to regulate online wagering in the United States.

California tribes fear the Frank bill would put them at a competitive disadvantage with offshore Internet gambling operators. More than 1.5 million Californians gamble on 600 offshore web sites, accounting for about 25 percent of the Internet gambling market in the United States.

“That’s the only thing that could revive the Wright bill this year – if Congress starts moving on Internet gambling,” Lombardi said.

Lombardi said he is not concerned by efforts in Florida and New Jersey to legalize Internet gambling because online wagering in those states would not affect the California market. 

The Morongo opposition is particularly surprising because shortly after Wright introduced his bill on May 28, the tribe joined California’s four largest card club casinos in saying the legislation would “provide desperately needed revenue for the state.”

But the same coalition issued a letter last Friday reversing course.

“By licensing foreign operators and Las Vegas gaming interests, this bill allows money to leave the state instead of helping California’s economy,” said the letter from the Morongo tribe and card club casinos.

When asked about the TASIN letter on Tuesday, Morongo spokesman Patrick Dorinson seemed to leave the door open for negotiations with Wright.

“It’s gotten this far, and he wants to see it done and we want to see it done,” Dorinson said.

Waltona Manion, a spokeswoman for the Morongo and card club coalition, agreed. “I think we are at the beginning of this process, and California is definitely moving toward an intrastate Internet gambling structure that will keep the money in the state,” Manion said.

Wright has scheduled a June 29 hearing on his bill by the California Senate Governmental Organization Committee, which he chairs.

Wright has already acknowledged that any bill that would legalize Internet gambling in California “will end up in court.”

But Wright has steadily progressed on his Internet gambling bill, which he claims could produce $1bn in revenues per year for California.

John Pappas, executive director of the Poker Players Alliance (or PPA), is among the witnesses scheduled to testify at the June 29 hearing and he has joined the chorus of criticism against Wright’s bill.

The PPA is suing Washington state, claiming its law that criminalizes online poker is unconstitutional. Wright’s bill would make gamblers vulnerable to criminal prosecution in California, and Pappas said that’s one of his objections.

“Senator Wright’s bill is so restrictive on the number of Internet gambling hub operators and licensees that it’s a losing business proposition,” Pappas said. “It’s fair to say at this point that we can’t support it.”