Opposition mounts against California's online gambling legislation
By Debra Gruszecki • The Desert Sun • June 25, 2010
Three politically astute California Indian nation associations have banded together to voice opposition to a Senate bill proposed to legalize Internet gambling.
The letter, sent to state Sen. Rodney Wright, D-Inglewood, from California Nations Indian Gaming Association, California Tribal Business Alliance and Tribal Alliance of Sovereign Indian Nations says Senate Bill 1485 would undermine the foundation on which tribal and state government decisions and financial commitments have been premised.
The tribe’s aren’t alone in their objections to the measure that would award up to three contracts to California-based “hub” operators to run Internet gambling sites.
California card rooms that teamed with Morongo Band of Mission Indians — Hollywood Park, Commerce, Hawaiian Gardens and The Bicycle casinos — to make the initial push have objected to the legislation as written, as well.
“We believe what plays in California should stay in California,’’ a June 15 letter to Wright and the Governmental Organization committee he chairs. “By licensing foreign operators and Las Vegas gaming interests, this bill allows money to leave the state instead of helping California’s economy.”
Wright, who proposed the legislation and chairs the Governmental Organization committee, expects to hear S.B. 1485 on Tuesday.
“He’s looking at the bigger universe,’’ said Arthur Terzakis, staff director.
Mid-day Friday, only one card room — Bay 101 in San Jose — sent a letter of support and said it would compete to operate one of the hubs.
Another backer was CyberArts Licensing LLC, of Berkeley, which expressed “strong support” as it would enhance consumer protection and state revenues through reliable technologies.
CyberArts is known for its Foundation Poker software in the Italian gaming market, and was chosen by La Francais des Jeux, the third largest lottery in the world, to run a legal poker site in France.
Morongo and its card room alliance had been lobbying solely for intrastate poker. The tribe also sought restrict ownership and investment in wagering hubs to card club owners and California tribal governments that were currently licensed and regulated.
The bill’s closed auction set-up allows illegal offshore operators that have amassed billions to bid against California’s legal gaming operators, the June 15 letter by Morongo chairman Robert Martin and card room owners to Wright said.
“More importantly, the bill is not limited to online poker and allows for other forms of online gaming. California, its cities and non-gaming tribes will all pay the price as the bill opens the door for the deterioration of California’s bricks and mortar gaming operations that provide significant.”
Wright said in an informational hearing he did not want to limit operating platforms to any one tribe, card club or game. With the Attorney General’s office handling oversight, the presumption is every game would be approved.
No position statement had been filed by the Attorney General’s office as of Friday.
But Poker Players Alliance, a grassroots advocacy organization representing the interests of 1.2 million members nationwide and more than 125,000 player members living in California, that it opposed the current version of the bill.
The California Coalition Against Gambling Expansion also opposed the measure, saying the newest version of the bill seeks to legalize “any game for money” on the Internet.
It not only could expressly violate tribal-state compacts, but directly contradict California’s Constitutional prohibitions against several games. The recent expose by the Los Angeles Times that reported several tribal casinos and card rooms had ATM machines that allowed welfare recipients to draw directly from their social service funds also raises questions, the coalition said in a June 24 letter to the Wright.
“Do we want to place such ATM capabilities in the home of every welfare recipient, retiree on fixed income and every other California citizen who has an Internet connection?’’ asked Fred Jones, the coalition’s advocate.