California's AB 2863 was supposed to go to a floor vote this past Monday but the bill was pulled at the last minute for "final negotiations."
It now appears that the bill is in the process of including modified suitability language.
There are also reports that this new language has convinced some members of the powerful Pechanga Coalition to finally switch sides, potentially opening the door for the bill's passage and legal online poker in California.
New Amendment May Offer Middle Ground to Opposing Bad Actor Clauses
As AB 2863 is currently drafted, the bad actor clause calls for companies such as PokerStars to receive a five-year ban before applying for a license.
Companies can forego this ban by agreeing to pay a one-time fee of $20 million. This position was not acceptable to the Pechanga Coalition and they proposed their own version of a bad actor clause.
In their version, PokerStars would have to sit out 10 years and before they could apply for a license they would have to pay a staggering $60 million fee.
The new amendment to the bill is being reported as providing some type of middle ground to both versions. If we were to make a guess, the ban would be in the neighborhood of 5 to 7 years with a fee somewhere in the $30 million range.
The question now is whether PokerStars will be willing to play ball on such an amendment.
Reports suggest that the company is adverse to the current amendment and the Pechanga's version as they claim it violates the U.S. Constitution.
We find it interesting that Amaya is worried about our laws considering they purchased a company that tried to skirt them for years.
Are Members of the Pechanga Coalition Willing to Defect?
Dave Palermo of OnlinePokerReport.com reports that at least two members of the Pechanga Coalition might switch sides and support AB 2863 once the new suitability language is added.
We don't know which tribes are willing to switch at this time. Palermo did list the Viejas Band of Kumeyaay Indians and the Yocha Dehe Band of Wintun Nation as two tribes that are remaining steadfast on the issue.
A lobbyist for the Viejas claims that there's no agreement in principle for any tribes, disputing the claim that tribes are about to jump ship.
The Pechanga Coalition is led by the Pechanga Band of Luiseño Indians and Agua Caliente Band of Cahuilla Indians.
If either of the leading tribes were one of those that switched sides, it could begin the end to the most powerful opposition to the bill.
At present, a vote is expected on this bill sometime next week. If that doesn't happen, odds are that this bill will be shelved until next year.