Update: New Moments in Correa's Bill

California bill to target players as well Two intrastate online poker legalization bills are competing in the State of California - SB40 authored by state Senator Lou Correa and supported by COPA, and SB45 from Sen. Rod Wright. Both bills are scheduled to be heard in the Senate Government Organization Committee on July 12, at an informational hearing. However, novelties have been introduced into Sen. Correa's bill, that would open up the market for more types of companies to offer poker, but also more harshly punishing those who break the rules. One of the new provisions is a harsh new punishment for players as well as operators, which proclaims that either “operating or playing on an unauthorised website" could result in a $10,000 fine, and that violators would be subjected to “seizure and forfeiture of all personal and real property used in or derived from the operation of or play on an unauthorised website.” However, the amendments also removed a limit of three licenses for operators, stating that there is “no requirement of membership in a coalition; no preferences among eligible entities.” Thereby, the bill will open up eligibility to current gaming tribes and card rooms. In addition, it is proposed that the state will require a $5 million, non-refundable application fee from the companies applying for license. If a bid is approved, much of that money would then count against later payouts to the state. This provision is probably designed with an intention to keep less prepared companies from trying to get into the market. Also, it has been specified that the operators who apply for a license within 90 days of the bill going into effect would prepay $50 million to the state against their future revenues, while those applying afterwards will have to pay $250 million. Finally, the SB40 bill will allow the state to opt out of federal legislation if any is passed, but on the other side, it involves a provision that protects exclusivity clauses in tribal gaming compacts. When asked if California Online Poker Association, a coalition of Indian tribes and existing Californian card rooms is still supporting the bill, COPA spokesman Ryan Hightower stated: “Absolutely. The entire set of amendments reflects a greater chance for California to earn more income. I think within the next 75 days we're going to see some movement on the bill, and it's still in a very good position to pass this year.” An opposite stand is occupied by the California Tribal Business Alliance, which claims that the $50 million license buy-in is just another way for COPA to exclude competitors and leave the business to the card rooms and gaming tribes.
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