California Still Trying
for Intrastate Online Gambling
February
24, 2010
The state of California has
been looking into legalizing online gambling within their state for some
time now. The Unlawful Internet Gambling Enforcement Act, or UIGEA,
makes online gambling illegal in the country and going across state
lines, but it allows for states to set their own rules when it comes to
online gambling on an intrastate basis. This is why so many of them are
now looking into a legalization of online gambling because they
understand the millions of dollars that could come into their state
annually from it.
But the tribes in the state are not pleased with the idea of online
gambling. They say that they have the only license to run casinos in the
state and therefore should be the only ones that can offer gambling.
They have had a compact with the state since 1999 and that they have
agreed to pay taxes to the state in return for that exclusivity.
But the tribes say that if the state starts allowing online gambling
then they don’t have to hold up their end of the bargain either. They
say that online gambling would negate the contract whereby they don’t
have to pay out any of their casino revenues to the state – which is
roughly $350 million to the state on an annual basis. They say that any
kind of gaming device whether it is online gambling or land based, is
under their jurisdiction and not allowed by their compact.
This could end up being the biggest thorn in the state’s side when it
comes to the legalization of intrastate online gambling. If the tribes
wont sign off on it they would be looking at losing hundreds of millions
of dollars in revenue, and possibly further legal action by the tribes
if they are circumvented. They said that any land based gambling
is supposed to be theirs, and that there are already poker clubs that
are being permitted which don’t donate anything to the state.
