Florida and California Take Small Swings at Online Gambling

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Wednesday, August 21st, 2013 | Written by Shane Larson

Two of the biggests potential markets for online poker in the United States – California and Florida – took tentative steps toward regulating the activity this week.

But the consensus remains that both states are still quite some distance away from offering regulated online poker.

Florida to look into online lottery sales

Florida is pushing closer to regulated online gambling on two fronts.

The first is a general review of the state’s policy toward gambling which is expected to be taken up by the legislature over the next year. While that review is not thought to have a specific focus on Internet gambling, it seems inevitable that the issue will be raised as a natural part of the conversation between lawmakers and those with an interest in Florida’s gambling industry.

The second front is potentially more immediate, and comes in the form of a bill proposed by State Sen. Gwen Margolis.

Margolis’ bill would allow lottery tickets to be sold online in Florida. No other forms of online gambling would be permitted under her approach.

While the bill was only recently introduced and is viewed as something of a legislative longshot, that didn’t stop opponents from pouncing immediately on the measure. One of the most vocal critics at this early stage has been the powerful retailers’ associations that drive the majority of Florida lottery sales.

Online gambling may not come about as a direct result of the legislative hearings mentioned above or via Margolis’ bill, both initiatives nonetheless move the state closer in the direction of permitting online gambling – and therefore regulated online poker for Florida residents.

With a population of 20 million, Florida would immediately become one of the most powerful players in the U.S. online poker market. The state is currently served by a variety of international online poker sites such as Bovada.

California chasing online poker bill as session winds down

While Florida’s efforts may seem so removed from online poker as to be somewhat abstract, California lawmakers are pursuing a far more direct route toward getting regulated online poker up and running in the state.

There are only a few weeks – some would say only a few days – left in the 2013 legislative calendar in California. The state closes up shop for the purpose of lawmaking in mid-September. While California lawmakers sort out the various pieces of the online gambling puzzle, players from the state continue to access US-friendly sites such as Carbon Poker by the tens of thousands.

But that hasn’t stopped State Sen. Lou Correa from proposing a last-minute push for regulated online poker in the form of SB 678.

That bill, which was filed earlier in the year as a stub bill lacking details, was amended this week by Correa. Under the amended bill, California’s card rooms and Native American casino operators would be eligible to receive licenses to operate and offer online poker to players in the state of California.

Only poker would be permitted, and the racetracks of California would not be able to get a piece of the online gambling pie.

Working in the bill’s favor: the revenue it would generate, the support of a fairly powerful segment of California’s gambling industry and the growing calls for California to act on Internet poker before other states dominate the industry or a federal bill removes some of California’s options.

Working against the bill’s chances: the lack of universal support about California’s tribes, most notably the California Tribal Business Alliance, the relatively short legislative window and the omission of racetracks from the online gambling equation.

We’ll be tracking movement on this issue in California, Florida, and the other 48 U.S. states in our regularly-updated poker news section here.