PokerStars Likely to be Prevented From Entering New York, California

Despite reportedly spending substantial amounts of money on lobbyists to push for legalized online poker in the state of New York, a provision in draft legislation could prevent the world’s largest real money online poker room, PokerStars, from setting up shop in the Empire State.

State Senator John Bonacic has introduced S 6913, a bill that would legalize online poker in the state of New York but would also include the so-called "bad actor" clause.  This means that any operator who accepted business from New York state citizens post federal prohibition of 2006 would be subject to disqualification, and that presumably includes PokerStars.

Bonacic’s bill seeks a licensing fee of $10 million that would not expire for 10 years. Taxation would be set at 15%.

To date, Governor Andrew Cuomo has embraced gambling expansion within the state though it is not entirely clear as to his position on Internet gambling.

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PokerStars also received a blow last week when California’s Tribal casinos came together to announce they would prevent the online poker firm from entering any regulated market in that state.  

About a dozen tribes released the following statement:

“Recent news reports indicate that online poker operator, PokerStars, is in partnership negotiations with a California tribe and two or more card clubs to offer online poker in California,” the statement said. “Although we presently have slightly differing views on a legislative framework for Intrastate Internet Poker in California, our tribal governments are united in our steadfast opposition to the easing of regulatory standards that would accommodate bad actors whose past behavior and tainted brands and assets would erode the integrity of Intrastate Internet poker under consideration.”

- Ace King, Gambling911.com