Gambling Headlines
Maybe Gambling is addictive
California has been desperately seeking a way to regulate online Poker since former state Assemblyman, Lloyd Levine, proposed a feasibility study in this regard in February 2008. Several legislators followed suit, but all their efforts were thwarted by a long line of red tape. However, this may change in the new year, because a group of pro-gambling organizations will lobby to have the idea resurrected.
Why the sudden push to legalize online gambling - well online Poker at least? Well, the state officials apparently see it as an easy source of revenue, especially considering the current recessive times. Online poker in California could bring in about $1 Billion annually. If California taxes the games at 25%, the same rate that it gets from the slot machiens at Indian casinos, the state could earn $250 Million per annum in revenue.
The major downside to this breakthrough is the Indian tribes, who have a gaming monopoly. The Indians would have a strong case for renegotiation, which could mean that the state could lose the tax revenues from their casinos, if the borders are open to online Poker. There is also the concern about money laundering and underage gambling, both of which would be hellish to monitor and control.
Easy money, however, seems to be on California's mind, so it will be interesting to see how this plays out next year.