Further Amendments to California Online Poker Bill

By: Akos

Posted: June 8, 2016

Updated: October 6, 2017

A bad actor clause, new tax rates, and limitations to marketing could be all added to the California online poker bill of Adam Gray.

AB 2863, known as the California online poker bill, will see a number of new amendments that were suggested by gaming attorney David Fried. The amendments include tax rates, license fees, and a bad actor clause. Also, it highlights that the bill is meant to authorize online poker only and “no other game may be played via the Internet.” The bad actor clause would bar all operators that accepted bets from US residents after 2006 from gaining a license.

Applicant are unsuitable for a license if they “accepted a bet or wager on any form of Internet gambling, or engaged in a transaction relating to those bets or wagers, from a person located in the United States,” after December, 2006. Furthermore, operators will be prohibited to use customer lists for marketing their business.

“A licensed service provider shall not, for any purpose, use any list of customers or database containing customer information that was accrued or created prior to the effective date of the regulations.”

According to US gambling news, a license fee would cost USD 12,5 million to operators and the tax rates will be based on the companies’ annual gross revenue:

USD 150 million or less – 8,847%

USD 150 million to USD 250 million – 10%

USD 250 million to USD 350 million – 12,5%

More than USD 350 million – 15%