Mike Gatto announces amendments to California online poker bill

The legislation, AB 9, would establish a regulatory structure to support locally owned businesses and keep much-needed revenue in the state. “The status quo is a lost opportunity,” said Gatto. “Californians already participate in online poker, but send their dollars overseas. By regulating and legitimizing this industry we will increase security, protect business owners, and keep our money here in the Golden State.”

This set of amendments most notably addresses the in-person sign-up requirement of the original version of the legislation. Rather than require players to register at a brick-and-mortar establishment, AB 9 will be amended to make in-person registration optional for players. “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,” said Gatto. “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.”

Giving players the option to register in person will still generate foot traffic and provide business to brick-and-mortar operators, while giving players the greatest flexibility in making transactions. Gatto is also considering ideas to require a new annual tournament that will drive players to existing brick-and-mortar establishments.

In addition to that amendment, Gatto is considering raising the sanctions against operators of unauthorized online poker sites, making it a felony for those who illegally offer real-money games to players in California, and offering additional resources to the Attorney General to enforce the new regime. Any amendments will appear in print after the bill is referred to its first committee for a hearing.

“California has led the world in computer and Internet innovation, including online security and screening, and there is no reason why we can't lead with a sensible online-poker framework,” said Gatto. “These amendments are derived from time-tested business practices that have received significant support from stakeholders. Lawmakers should listen to feedback from experts as they seek to form sound public policy.”