SB 40

Bill Subjects

Abstract

The Gambling Control Act provides for the licensure of certain individuals and establishments that conduct controlled games, as defined, and for the regulation of these gambling activities by the California Gambling Control Commission. Existing law provides for the enforcement of those regulations by the Department of Justice. Any violation of these provisions is punishable as a misdemeanor, as specified. This bill would establish a framework to authorize intrastate Internet poker, as specified. The bill would require the commission to adopt emergency regulations, in consultation with the department, providing for the issuance of licenses to operate intrastate Internet poker Web sites and governing the intrastate play of poker games on the Internet. The bill would make it a misdemeanor for any person or entity to offer or participate in any form of illegal Internet gambling, as defined, or to knowingly process any financial transaction arising out of participation in illegal Internet gambling. The bill would authorize the seizure of any money or property used in or derived from illegal Internet gambling, as specified, and would provide for any money or property that has been seized to be forfeited to the Internet Gambling Fund, as established by this bill. By creating new crimes, this bill would impose a state-mandated local program. This bill would permit these Internet Web sites to conduct a live online nonbanked, nonpercentage version of the card game poker within the borders of the State of California under the same rules, and with the same manner of compensation, as apply to poker games currently conducted in licensed gambling establishments and tribal class II gaming facilities. The bill would require the commission to issue licenses to own and operate intrastate Internet poker Web sites to eligible entities, as specified. The bill would authorize the commission to assess fees on licensed entities in an amount reasonably necessary to reimburse the commission for its costs in implementing and administering these provisions, including a registration fee. The bill also would require a licensed entity to pay a license fee equal to 10% of the fees collected by the licensed entity from players participating in poker games conducted on its Internet Web site. The bill would provide for all fees to be remitted to the Internet Gambling Fund, as established by this bill and administered by the Controller, subject to annual appropriation by the Legislature. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately as an urgency statute.