US I-Gaming Policy Brief : State/Territory I-Gaming Legislation/Regulatory Efforts



SB 1463, sponsored by Senators Wright and Steinberg, would provide for the licensure, regulation and taxation of Internet gambling, with licensees initially restricted to authorized poker games; additional games may be phased in, if allowed under the California Constitution and Penal Code. Some key points in the legislation are:

· Licenses for 10-year terms, with a required review in the third year.

· Initial licenses shall take effect simultaneously no later than Jan. 1, 2014.

· Licenses restricted to those holding a CA "owner license," federally recognized CA-based tribes operating a casino pursuant to a tribal-state compact, horse associations holding a license from the California Horse Racing Board ("CHRB"), and ADW operators regulated by the CHRB for at least 3 years.

· License application fees will be $1-5 million, as needed to cover expected costs of investigation and determining suitability, with excess returned or additional amounts paid if needed.

· Tribal are applicants required to waive sovereign immunity for purposes of licensure evaluation and tribal licensees must agree to be subject to CA jurisdiction in relation to I-gaming.

· Licensees must pay a nonrefundable license fee of $30 million, which will be used to cover a monthly deposit to the CA General Fund equal to 10% of its gross revenues. When the $30 million is depleted, the licensee shall directly make the monthly payment.

Please see full publication for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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