Changes to California poker bill could clear the way for PokerStarâs return
Updates AB 2863 increases licence fees and addresses âbad actorâ clause
New amendments to the iPoker bill making its way through Californiaâs legislature could open the door for PokerStars to return to the state.
The key change to AB 2863, as first revealed by California gaming lawyer David M. Fried, is a new benchmark for âsuitabilityâ.
Most US egaming bills have a âbad actorâ or âsuitabilityâ clause which prohibits companies that participated in the market after the passage of UIGEA in 2006 from operating in the new regulated market.
However the amended California bill puts the cut-off point at December 31, 2011. Since PokerStars exited the US after Black Friday in April 2011, it would not be classified a bad actor under the law.
The amended bill would also increase the upfront licensing fee from $10m to $12.5m and the figure would no longer be credited against future tax payments, making it a significant barrier to entry for smaller operators.
While the changes will be welcome news for PokerStars, they could also hinder the passage of the bill, as tribal gaming organisations in California were already opposed to the bill based on the fact it could herald the return of the Amaya-owned operator.
Perhaps in an attempt to appease the tribes, the amendments also include an article which prohibits operators from utilising any information such as databases or list of customers that have been acquired or created before Californiaâs laws on the matter were passed. The use of such information will be prohibited until the start of 2019.
Other changes to the bill include the introduction of a variable tax rate, with all operators paying 8.8% of GGR if total revenues are is less than $150m, rising to 10% if revenue falls between $150mâ$250m. This rises again to 12.5% for a market worth $250mâ$350m, while a total exceeding $350m will trigger a 15% rate