“Authorize online poker this year”

Senator Lou Correa presented Senate Bill 40 to the Senate Committee on Governmental Organization. Correa invited several experts to testify on the bill, which would authorize online poker in California and provide US$ 250 million in new revenue to the state this year.

Sen. Correa based the need for SB 40 on several points, namely:

- The need for new revenue in California this year, in order to prevent triggers in the state budget that will require further, massive cuts to education.

- The need to protect consumers from fraud and theft which currently go unchecked at illegal, offshore online gambling web sites.

- The need to pass online poker legislation before dangerous federal proposals are able to pass Congress, stripping California of potential jobs and revenue.

“What our state needs right now is revenue. SB 40 will allow California to generate US$ 250 million this fiscal year, money that will help us meet the revenues projected in this (year’s) budget but not identified. SB 40 will help avoid the triggers that will result in deeper cuts to education and other public services,” Sen. Correa said before the committee.

Experts in attendance who supported Sen. Correa’s position on passing SB 40 this year included:

Former Speaker of the State Assembly and Mayor of San Francisco Willie Brown described the need for state regulation of online poker and the benefits of using the state’s trusted gaming partners — California Indian tribes and licensed card rooms — to operate online poker in California.

Former State Finance Director Tim Gage, who analyzed the revenue potential of online poker in California. Gage testified that by authorizing online poker, California can generate more than $1.4 billion in new revenue over the next ten years and 1,300 new jobs.

Rick Weil, CEO of Sciplay, a worldwide leader in Internet gaming technology, who testified that current technology allows online gaming operators, if required, to prevent minors from being able to login and play poker online through age verification software. He also described the ability to help identify problem gambling and help protect players from fraud and theft.

Jim Wise, federal advocate and Congressional expert, who described the threat posed to California from dangerous federal legislation that threatens to ship California’s revenue to Nevada and Washington, D.C.

Wise explained the urgent need for California to move forward, noting that Nevada Gov. Brian Sandoval signed a new law last month requiring his state to adopt regulations to implement Internet gambling by January. This is further evidence that Congress is ready to move on a federal bill which will put Nevada well ahead of other states in securing the market while leaving California behind, Wise said.

“We have an opportunity to generate 1,300 new California jobs and $1.4 billion in new state revenues instead of watching those jobs and revenues be exported to Nevada or DC through federal legislation,” Correa said. “We can’t afford to do nothing. We can’t delay. If we do, the revenue will be lost, the jobs will be lost and the opportunity will be lost.”