New California Online Poker Bill

[Eric]

Check it out: http://ctweb.capitoltrack.com/public...SDHyy27Zyi2cm3

[Eric]

ASSEMBLY BILL No. 9
Introduced by Assembly Member Gatto
December 1, 2014

License fees are spelled out:

The bill would require
each licensee to pay a one-time license deposit into the General Fund
in the amount of $5,000,000. The license deposit would be credited
against quarterly fees equivalent to 5% of the licensee’s gross gaming
revenue proceeds, as specified.
[page 4]

Having played online in NJ, I can say it is fairly simple making online deposits with ACH.
It would be logical for California to follow New Jersey's example with deposits.
This part of California's bill makes no sense:

(4) (A) The licensed operator shall require a registered player
to make the initial deposit into his or her registered player account
in person at the land-based gaming facility operated by the licensed
operator or at a satellite service center operated pursuant to
subdivision (c) of Section 19990.505.
[page 40]

Again, the above "in person" clause is a nightmare, I don't understand it.

Like NJ, California will require social security numbers:

(d) To register and establish a registered player account to play
poker with real money, a person shall provide all of the following
registration information:
(1) First name and surname.
(2) Principal residence address.
(3) Telephone number.
(4) Social security number.
(5) Identification or certification to prove that person is at least
21 years of age.
(6) Valid email address.
[page 45]

[Eric]

More of the in person nonsense:

This bill would require a registered player account to be established
in person, and would also require that specified deposits into and
withdrawals out of those accounts be made in person.
[page 3]

(c) (1) A registered player account shall be established in person
at the land-based gaming facility operated by the licensed operator
or at a satellite service center operated pursuant to paragraph (2).
[page 44]

[Eric]

PokerNews spoke with Assemblyman Mike Gatto: http://www.pokernews.com/news/2014/1...rnia-19977.htm

The in person requirements are like nothing we've seen with online poker:

The main difference is Gatto's bill requires the initial deposit as well as withdrawals over an undetermined amount (he said it could be anywhere between $300 and $10,000) to be made in person, and establishes satellite service centers to handle these transactions.

By having the initial deposits and withdrawals over a specific amount done in person, Gatto hopes to appease the concerns of those who oppose online gaming due to the potential for underage play and money laundering. It also provides a reason for people to go to the casinos in person.

Gatto admits that there are likely to be a few groups that dominate the marketplace, which is why he thinks that satellite service centers are important to give the state's smaller casinos a piece of the pie. If the best site is focused around casinos or card rooms in Southern California, it will want to partner with small casinos in all corners of the vast state in order to have satellite service centers where people can make a deposit and withdrawals. This will also bring foot traffic to the smaller casinos.

“A lot of people in the gold rush got rich selling shovels, and we think we have a proposal that has shovels in it now,” Gatto said.

While this could be a nuisance for players, Gatto noted that most people in the state are within an hour of some establishment that takes bets.

[Eric]

Good news - this is being amended to delete the terrible in-person clause. It would have stifled growth much like the ridiculously high tax rate in DE.