A proposed legislation calling for the legalization and regulation of online poker in California passed a legislative committee earlier this week, marking a historic progress in a decade-long effort for the introduction of legal and regulated Internet poker offering.

On Wednesday, AB 2863, sponsored by Assembly member Adam Gray, was unanimously voted in favor of by members of the Assembly Governmental Organization Committee.

Assemblyman Gray, who also chairs the above-mentioned committee, presented his bill at a Wednesday hearing, explaining that quite a lot has been done in the necessary generation of support for two main points the proposed legislation dwells upon – the involvement of the state horse racing industry, once online poker is legalized and regulated, and the so-called "bad actors" provision, aimed mainly at preventing PokerStars from offering its services in California.

The first provision has been backed by the California horse racing industry. Under AB 2863, the state horse racing industry would receive a $60-million subsidy as part of the proposed legislation. In return, they would need to give up the right to operate regulated Internet poker market. Although there have been concerns on whether the $60-million figure was attainable one, Assemblyman Gray has repeatedly pointed out that the issue had long been settled and that he has now been striving to get California tribes on board concerning sustainability.

However, it seems that there is a lot more to be done regarding the "bad actors" provision. The Pechanga Band of Luiseno Indians and Agua Caliente Band of Cahuilla Indians are still the bill's staunchest opponents. They keep on repeating that bad actors, or online poke providers that have continued their operations in the US even after the Unlawful Internet Gambling Enforcement Act came into effect in 2006, with PokerStars being among those, should not be allowed to manage poker operations within the state.

The good news is that other tribes that have formerly opposed the proposed legislation seem to have changed their minds and are now backing it.

Assemblyman Gray said on Wednesday that suitability is probably the last major issue that needs to be solved. The legislator said that he is discussing the addition of a "bad actors" provision with stakeholders and that suitability language will be included before the bill is presented for a vote to the full Assembly.

It is still unclear when more action on the bill would be seen. It is now to be voted by the full Assembly. However, as it seems, it should receive support from all state tribes on the "bad actors" provision. Otherwise, its prospects will be really poor, according to people with knowledge of the matter. The proposed legislations needs to be voted in favor of by two-thirds of all Assembly members in order to be presented to the state Senate.

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