On the same day that PokerStars laid out plans to return to the United Statesfor the first time since Black Friday, the highly anticipated meeting of the California State Assembly’s Governmental Organization Committee was held, with a great deal of positive conversation about online poker, but no firm actions were taken.

The hearing, entitled “The Future Public Policy and Fiscal Implications of Authorizing iPoker Gaming in California,” was expected to address several areas of concern regarding online poker in the state.

A total of 33 witnesses stepped before the committee and its chairman, Isadore Hall III, addressing such issues how online gambling and poker have worked to this point in New Jersey and Nevada, the effects of the Tribal Indians, and how California card rooms and horse tracks would be affected.

Although Hall stated at the beginning that the hearing was “educational in nature” and not focused on either bill currently circulating in the California General Assembly, he did state an obvious goal. “We owe it to the citizens of this great state to craft a bill that can be a national model,” Hall indicated.

Two of Hall’s committee members, Manuel Perez and Brian Nestande, emphasized that there was the need for California to move forward with legislation before the Federal Government became involved. With that, the floor was opened and testimony commenced.

One of the early supporters of California’s legislation was the former head of the Nevada Gaming Control Board, Mark Lipparelli (pictured), who is now lobbying for passage of legislation. He contended that regulatory licensing of the potential industry would be the biggest hurdle to overcome. He also spoke about “black market” online poker, saying, “The black market is efficient and well-established.”

Lipparelli also contended that online poker sites were “not an obvious or likely place to launder funds,” but that law enforcement needs money and the appropriate devices to counter the black market.

The next series of speakers were from Nevada and New Jersey that discussed their experience with online gambling regulation. Chris Krafcik, Research Director for Gambling Compliance North America, testified that California could support up to six online sites that would bring in between $400 million and $1 billion total.

Borgata COO Tom Ballanceand Ultimate Gaming chief Tobin Prior testified that the online elements haven’t “cannibalized” their land-based operations, but unregulated operators still have an advantage over them. “The biggest operators in the US online poker market remain the illegal sites,” Prior contended.

Then there were the Indian Tribes. Mark Macarro, Chairman of the Pechanga Band of Luisefio Indians, signaled that an agreement among the tribes regarding online poker “will be coming in the weeks ahead.” As he was making this statement, the Morongo Band of Mission Indians stunned the industry by announcing that PokerStars had entered into a deal with the tribe and three California card rooms: Commerce Casino, Hawaiian Gardens, and the Bike.

As the meeting began to draw to a close, Andy Abboud (pictured), Vice President of Government Relations and Community Development for the Las Vegas Sands Corporation, used many of the same tactics that have been seen in past appearances, like waving a phone to emphasize how it can become a “gambling device” and comparing online gambling to Big Tobacco. Members of the committee criticized Abboud for his company’s opinions.

Hall ripped into Abboud as to why the Las Vegas Sands Corporation didn’t fight against the efforts in Nevada. “We were unaware” what the Nevada legislature was doing when the bill was passed, according to Abboud. When he was asked why Sands didn’t fight in New Jersey, Abboud said the company’s position was “evolving.”

Hall then performed the same cell phone trick that was utilized by US Congressman Joe Barton in a Congressional hearing in December, citing the hypocrisy of the Abboud’s position when the company he represents is actively engaged in online gambling at properties on the Las Vegas Strip.

The meeting closed with comments from the public, which filled the conference room. Following that process, the meeting was adjourned without any further indication as to future hearings or action on the legislative front. While the hearings showed there was a great deal of support for a proposed California online poker industry, there is still a great deal of work to be done.

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