Senate Democrat sweetens pot for Internet poker plan

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A state Senator has proposed dealing a better hand to groups wanting to operate Internet poker games in California, and opponents are crying foul. Sen. Roderick Wright (D-Inglewood) has changed his legislation to require Internet gambling operators sanctioned by the state to share at least 10% of their gross revenue, down from 20% requirement in the bill previously.

Wright also changed the measure so the state’s contract with three operators of the Internet games will be for up to 20 years instead of five years.

Wright is chairman of the Governmental Organization Committee, which will consider SB 1485 on Tuesday. The senator proposed a reduction in the minimum revenue-sharing percent in order to provide flexibility in considering competitive bids, according to Arthur Terzakis, staff director for the committee.

If one operator bids just below 20% but otherwise has a better proposal than competitors, Wright wants the state to be able to consider that bid, Terzakis said.

As for the longer contract term, Wright ‘feels these folks are going to be putting a pretty sizable investment into these operations,’ Terzakis said. The senator thinks a longer contract term will provide more time for operators to recover their investment, making the contracts more attractive to bidders.

The more favorable terms added fuel to the fire for opponents, including Fred Jones of the California Coalition Against Gambling Expansion. Jones already objected to the measure because he thinks it is illegal and will increase problem gambling in the state.

‘Before the ink is dry on this, we’re already giving these three perspective groups even more of a share,’ Jones said, adding ‘it really undercuts’ the argument of supporters that the proposal would be good financially for state coffers.

-- Patrick McGreevy