California Looks To Online Poker For Help
Written by RogerCP | Thursday, February 26th, 2009
California has the second highest foreclosure rate in the United States and an unemployment rate almost touching 10%. The budget deficit was $42 million and this time Governor Arnold Schwarzenegger was able to get away by increasing taxes and cutting services.
But this is not a long term solution. New tax revenue streams are needed and needed in a hurry. Legislators have figured out that online poker is the ideal way out. However it is not as simple as it seems. They have to figure out a workable business model, understand the implications of federal laws and also deal with the opposition to legalizing online poker sites.
The first step is to touch base with the online poker industry. To do that some of the legislators will be attending an i-gaming conference in Sacramento in May. There they will interact a select band of highly reputed organizations associated with online poker, some of whom may partner the state in an online poker initiative.
One of the invitees to this exclusive meeting is the Interactive Media Entertainment & Gaming Association (iMEGA) founder Joe Brennan Jr. Brennan has earned tremendous respect from those within the fraternity and from the opposition for his initiative in foiling the state Kentucky from seizing the domain names of 141 online gambling operators. It is also learnt that 888.com and Cryptologic will be asked to give presentations. Both are publicly traded companies and that is likely to be a requirement for any potential partner. 888.com is a highly acclaimed online gambling portal and Cryptologic is a leading online software provider. The only problem that could arise with 888.com is that it is playing a lead role in the European Commission’s battle with the United States on the issues of not allowing American players to access online gambling portals.
Before any proposal takes shape a host of legal issues will have to be sorted out. Many of the online gambling operators who fled the United States after the imposition of the UIGEA are still under the scanner for providing online gambling services to American customers prior to 2006. The federal authorities have held that online gambling was illegal under the Wire Act and have even arrested heads of online gambling service providers. Before 888.com or any other online poker room steps in they will have to be assured that they do not face charges. The Indian casinos who so far have had exclusive rights to offering gambling services in the state will also oppose any proposal by the state.
If online gambling becomes legal in the United States sooner rather than later, it will not be on account of a change in heart of the legislators or of pressure applied by the online gambling associations. It will be only because of the dire economic necessity of generating more revenue.
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· Written by RogerCP · Filed Under Poker Gossip · Comments Off
