It's no secret that the two primary issues that have consistently stalled online poker regulation in California are racetrack participation and allowing 'so called' bad actors to offer online poker.
However, according to a recent article by Online Poker Report, the bad actor issue may now be moot after PokerStars was approved for a license to offer iPoker in New Jersey.
Rival Tribes Meet to Discuss Issues Blocking Regulation
According to a Friday article on OPR by Dave Palermo, members of rival Indian tribes have met recently to discuss the two primary issues blocking online poker regulation in the Golden State.
This meeting is viewed as a positive step towards finally resolving much of the conflict that has essentially blocked regulation for years.
The tribes side on two points. The first is whether that the horse racing industry in the state should be allowed to participate.
Some tribes feel that they should be allowed while others believe that allowing racetracks to offer online poker represents an expansion of gambling which California citizens have yet to approve.
The other issue, and the one that has received the most attention, is whether to allow bad actors into the state. Bad actors are online poker sites that took bets in the United States post UIGEA.
This primarily only affects PokerStars as it's only former site to try to return to the United States.
Bad Actor Issue May be Moot
The biggest reveal in the article by OPR is that the bad actor issue may have been rendered moot by New Jersey. Palermo said that an anonymous source has said that the bad actor issue has "largely become moot" thanks to recent developments in New Jersey.
New Jersey spent over a year investigating Amaya and its purchase of PokerStars in August 2014. The State finally issued a license to PokerStars late last year contingent that certain conditions were met by December 31.
Now that PokerStars has been deemed appropriate to offer online poker in New Jersey, it is hard for other states to continue to claim otherwise. This was to be expected and it is entirely possible that California could impose similar conditions on PokerStars once iPoker is finally regulated.
Time to Resolve Racetrack Dilemma
Now that it is clear that the primary issue blocking iPoker is racetrack participation, it is time for both sides to come to an arrangement. The Pechanga offered two fantastic options last year but the racetrack officials still contend they will accept nothing short of being fully licensed.
In the OPR article, a Pechanga source has reportedly reached out to members of the horse racing industry in an attempt to discuss issues. They have yet to receive a reply.
The report also claims that there is a sentiment growing among tribes for the affiliate agreement proposed by the Pechanga last yet.
This would allow the racetracks to partner up with a card room or tribe and they would receive a fee and possibly rakeback for every player signed up through their sites.
Don't be surprised if a major meeting is announced sometime in the coming week between parties to finally hammer out a solution.
Knowing the cost that will likely be involved with iPoker, we believe that the industry will opt for a solution that would allow them to participate without having to commit significant financial resources.