It's yet again September and, like every September for the last few years, California has failed to pass online poker legislation.

This year was the latest "best chance" for iPoker to come to a floor vote and it nearly got there.

There was significant progress made this year, perhaps more than any year to this point. But in the end the result was still the same

Let's look at three things we learned during the legislative process in 2016 and look forward to next year.

  1. One Major Obstacle Resolved

First, one of two major issues was completely resolved this year.

Assemblyman Adam Gray was able to negotiate a deal with the horse racing industry that takes them out of the equation for an annual stipend.

Removing this obstacle originally was seen as a way to quicken the pace of regulation in the state but that changed with the insider trading charges against former Amaya CEO David Baazov.

The good news is that there's no reason to believe the same deal will not merely roll over to next year's legislation, leaving lawmakers needing to only work on resolving the suitability issue.

2. Tribes Appear Willing to Negotiate

Another thing that we saw this year was a willingness by the Pechanga Coalition and other Indian nations to negotiate over the suitability language in AB 2863.

A group that initially was completely against allowing bad actors into the state have now revised their position and appear ready to accept a mere 5-year ban for PokerStars and any other bad actor.

Originally they had sought a 10-year ban and a fine of $60 million but most everyone knew that those terms were going to kill any chance of passing iPoker legislation.

We're hoping that the tribes are willing to negotiate in similar fashion next year and that the other side is willing to play ball.

3. PokerStars and PPA Show True Colors

When the Tribes were making unreasonable demands against PokerStars and bad actors, they were painted as the victims and the "champions of online poker."

Now, their role has been changed and they are seen as obstructionist much in the same vane as the Pechanga Coalition.

When the last group of amendments was announced for AB 2863, PokerStars balked at the changes and insisted that the suitability language return to that demanded by the Assembly Appropriations Committee.

The original amendment called for a five-year ban or PokerStars could pay a fee of $20 million and apply for a license immediately.

If this amendment stayed in place, most assumed PokerStars would pay the fee and move forward.However, with removal of the get out of jail free fee, PokerStars has changed from favoring the bill to opposing.

The Poker Players Alliance has also started advocating against these changes, and instead of advocating for moving forward with regulation, they are painting a picture that players want online poker with PokerStars as a choice.

We all know that the PPA is more of a lobbying group as opposed to a true champion of online poker, and this change shows their true colors.

PokerStars and the PPA are effectively stating that they only want online poker their way or they are not interested.

What's Next?

The 2016 legislative session is over and now Assemblyman Gray must start again in 2017. Most assume he will get a head start on the process and begin late this year with constructing a new bill.

Expect next year's bill to be very similar to the one drafted in 2016. What this means for the suitability clause remains to be seen but now pressure will be on PokerStars to negotiate more than on the tribes.

A five-year ban is not a new paradigm. Nevada has a five-year ban in place and PokerStars didn't even blink. Perhaps that was because Nevada was more concerned with passing online poker than advocating to one group.

It would be great if California could take a similar stance but, unfortunately, we don't see that happening.

If PokerStars is willing to negotiate, we could see this bill move to an actual vote in 2017. Otherwise, come back next September for the latest version of "Why California Didn't Pass Online Poker This Year."