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California Lawmaker Eyes Changes To I-Poker Bill

Mike Gatto To Drop Requirement For Registering In Person

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Mike GattoThough this doesn’t necessarily increase its chances of passage into law this year, there’s some good news surrounding the only online poker proposal currently sitting on the table in the California legislature.

California Assemblyman Mike Gatto (D-Glendale) announced late last week the first set of proposed amendments to his California online poker bill, the state’s latest crack at legalizing online card playing for real-money.

Other lawmakers have tried in past years to authorize real-money online poker in California, but competing gaming interests in the state have never been able to broker some sort of compromise. This year probably contains a better chance of that happening than in years past, but it’s still no sure bet. However, Gatto is moving his chips into position.

Gatto said in a press release that he’s met with technology experts to address some of the initial concerns with his proposal. There was a lot of criticism of the provision in his bill that would have required online poker players to register and make their first deposit in person at a licensed brick-and-mortar location. Many think that such a rule would make it very challenging for an online poker industry in the Golden State to gain any traction.

Online poker is loved, in part, for its convenience and one’s ability to play from home. Forcing people to delay one of the biggest benefits of online poker could be a killer for a fledgling industry. Online poker industries in Nevada and New Jersey don’t have such a rule.

“After meeting with security experts and hearing from poker players and industry professionals, I have concluded that online poker would be best served by making in-person registration an option rather than a requirement,” Gatto said in a statement.

“State of the art technology currently used by operators in other states when registering players accesses many of the same databases used by financial institutions to verify the identity of registrants and prevent fraud. My goal remains creating a sensible framework for a new California industry. That will involve a thoughtful process of consultation with all of the key stakeholders. I pride myself in listening; I expect this process will continue throughout the year.”

Gatto thinks that giving players the option to register and deposit in person is best because it will provide players with “the greatest flexibility in making transactions.”

It is industry standard in the U.S. to allow both online and in person transactions.

Interestingly, Gatto is also considering ideas to require a new annual tournament that will drive players to existing brick-and-mortar establishments. The reason why gaming interests in the state haven’t come to an agreement on an online poker bill yet is because some worry that there would be big winners, while some would lose out. An online poker bill in California that comes to pass will need to give all existing gaming groups a solid chance to benefit economically.

Another provision he is pondering would raise the sanctions against the operators of unauthorized online poker operators, making it a felony for those who illegally offer real-money games to players in California. The bill could offer additional resources to the Attorney General to enforce the law.

Gatto’s proposed amendments will appear in print after the bill is referred to its first committee for a hearing, which should happen sometime in the coming weeks.

Gatto is the chairman of California’s Consumer Protection and Privacy Committee, and is also the longest-serving current member of the State Assembly.