Hyperion Blog
09
Sep
2009
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The Morongo Band of Mission Indians near Banning has pulled the plug on efforts to pass legislation legalizing online poker this year.
The outcome marks a rare political setback for the influential Inland tribe, which for weeks tried to line up support for a proposal to create a "tribal intrastate Internet poker consortium" with allies in the card club industry.
But with time running out on the regular legislative session, proponents still had not found a lawmaker willing to carry a bill. Meanwhile, the proposal drew opposition from several large tribes with casinos and from a poker-players association.
A major blow came Aug. 26, when two-thirds of Senate Republicans sent a private letter to Senate President Pro Tem Darrell Steinberg, D-Sacramento, asking that he delay any consideration of the plan until next year because there "simply is not enough time to have a thoughtful, thorough, and transparent debate over such a sweeping proposal."
Patrick Dorinson, a spokesman for the Morongo tribe, said proponents will consider trying again in 2010.
"You always try to come up with the best proposal possible," Dorinson said. "As the legislative session winds down, one, we're running out of time and two, we want to address the concerns and build as strong a coalition as possible."
Senate Minority Leader Dennis Hollingsworth met with proponents of the idea but was among those who signed last month's letter.
"Those who were likely to support such a concept really felt that it needed to be well thought out with a lot of folks' input," said Hollingsworth, R-Murrieta. The regular session ends Friday.
Federal law restricts online poker sites in the U.S. Yet hundreds operate outside the country, generating billions in revenue.
An estimated 1 million Californians play online poker every week, according to proponents of the California proposal.
They and others contend that the federal rules would permit online poker if the players and computer servers hosting the games are within the state authorizing them.
A draft of the proposal emerged last month right before lawmakers returned from their summer recess.
It called for creating a gambling Web site run by the Morongo tribe and other consortium members. The state would have received an unspecified share of the proceeds.
But hurdles quickly surfaced.
Lawmakers already have dozens of complex matters on their plate, including major negotiations on water, prisons and renewable energy mandates.
On Aug. 18, Steinberg told reporters he didn't think online poker should be part of the end-of-session mix.
In addition, some questioned giving one group control of the state's lucrative online poker business. Also, Congress is weighing legislation on the subject.
The California Tribal Business Alliance, which includes several wealthy tribes with casinos, came out against the deal.
"What you're talking about creating are virtual casinos," the group's general counsel, Howard Dickstein, told an audience of lawmakers, tribal leaders and others at a lunch last month.
Such a proposal, he said, could undermine recent revenue-sharing casino agreements between the state and several tribes.
Tribes with casinos in the Inland area historically have stuck together. But the Pechanga Band of Luiseno Indians near Temecula also lobbied against the Morongo proposal.
"There may be merit to the concept, but a lot of questions still need to be addressed," Pechanga chairman Mark Macarro said in a statement Tuesday.
The tribes' differences caused sympathetic lawmakers to keep their distance.
"I think it's a serious issue and something that probably needs to be looked into...but I'm hoping to see more research on it," said Assemblyman Tony Mendoza, D-Artesia, one of the lawmakers who had been mentioned as a potential author of the Morongo tribe's poker propos.
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