CA: COPA - EXECUTIVE SUMMARY OF COPA DRAFT OF SB 1463 (WRIGHT/STEINBERG)

COPA Statement Regarding Consensus Amendments

Presented to Senator Wright

Sacramento, CA – Ryan Hightower, spokesman for the California Online Poker Association (COPA), a coalition of 60 California Tribal Governments and Card Clubs, released the following statement today regarding recommended amendments to SB 1463:

“The California Online Poker Association today presented a set of amendments to SB 1463 to Senator Rod Wright and members of the legislature.

The amendments would ensure California receives its fair share of revenues and jobs from online poker rather than allowing them to be shipped out-of-state. California cannot afford to give up 1,300 jobs and $1.4 billion in new revenue for California over the next ten years by further delaying online poker legislation.

Recognizing the state’s dire need for new revenue and in the spirit of compromise COPA also included as part of these amendments solutions that address concerns raised by other stakeholders involved in this debate. Delay simply for the sake of delay is not an option anymore for California.

COPA’s proposal is supported by a growing coalition that includes SEIU, PORAC, VICA and others, along with 15,000 individuals who have all rallied to support passing online poker legislation this year.

With millions of Californians playing poker online, consumer protections are desperately needed. To put this off another year is not in anyone’s best interest. We urge Senator Wright and others support the passage of SB 1463 with these amendments.”

The California Online Poker Association is California's first coalition of gaming tribes and card rooms, working together to protect California consumers, and to keep much-needed revenues and jobs in California. As California's trusted and regulated gaming operators, COPA partners include 29 of California Indian Tribes, both gaming and non-gaming, as well as 31 card rooms that represent over 70% of the state's poker tables.

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EXECUTIVE SUMMARY OF COPA DRAFT OF SB 1463 (WRIGHT/STEINBERG)

COPA has prepared a draft version of SB 1463 which addresses COPA’s concerns with the existing measure. The changes are also largely consistent with the views of other tribal entities. A summary of the changes is set forth below.

SUMMARY OF COPA'S CHANGES TO SB 1463

1. Duration of owner licenses: The initial term would be extended from five to ten years, with automatic renewal if the licensee is in good standing at the end of the initial term.

2. Entities eligible to apply for owner licenses: Adds tribes engaged in Class II gaming overseen by NIGC (e.g., Lytton), and entities that include as passive (i.e., non-controlling) members non-gaming tribal governments eligible to operate poker on Indian lands (e.g., COPA). Deletes racing associations and ADW providers; however, ADW providers remain eligible to serve as technology providers. There is no "cap" on the vendor-licensee business relationship.

3. Authorized games: Includes a more detailed definition of "poker" as the only form of on-line games that may be approved by the DOJ, and excludes pai-gow and California blackjack.

4. Asset forfeiture: Includes asset forfeiture as a sanction for operating unauthorized on-line gambling websites.

5. Presumptive suitability: Provides that an eligible applicant is presumed suitable upon showing that it can satisfy its financial obligations with its own assets or its own creditworthiness based on its own assets. Streamlines owner-licensing process.

6. Deterrence of "false fronts": Requires that an owner-licensee have assets or creditworthiness based on its own or its members' assets to meet financial obligations without provision of funding by technology contractors, and that any financing by contractor(s) be on commercially reasonable terms.

7. Remittance of taxes: Requires that withheld player taxes be remitted quarterly, and 10% ongoing owner license fees be remitted by 15th day of following month.

8. Retention of player records: Clarifies that player records be retained and made available electronically to regulators for one year after close of each year, and retained in archive for a year after that.