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A group of companies including the Morongo Band of Mission Indians and the Commerce Casino plans to ask the state Legislature to allow gambling interests to set up Internet poker sites within the state of California.
Industry experts report that global online wagering brings in $347 billion annually with millions coming from U.S. residents betting on poker games played from their computers.
Nelson Rose, a professor at Whittier Law School and an expert on gambling law estimates that California Internet poker games could bring in revenue of up to $1 billion a year and if the state took the same percentage as Indian run slot machines they could get an extra $250 million to use for the state budget.
Rose has advised the consortium that the state would be exempt from federal restrictions if the businesses were operated exclusively within the state and catered only to California residents. However Federal attorneys disagree.
State law gives Indian tribes the exclusive rights to operate electronic games of chance and Federal law does not prohibit U.S. citizens from participating in Internet gambling but does restrict them from using financial institutions to do so.
The gaming companies interested in operating the sites propose using club cards to except wagers and payout winnings, collectible from land based Indian casinos.
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