CALIFORNIA – The California Assembly is back in session for the next several weeks, but Senate President Pro Tem Darrell Steinberg has just announced that there will be no action on any of the various Internet bills prior to adjournment on September 9. This development follows a vigorous legislative effort during 2011, featuring competing Senate bills (SB 45, the Wright bill, and SB 40, the Correa bill). Television advertising supporting SB 40 appeared on Sacramento stations last week. However, major Indian tribes are reportedly not happy with the latest iteration of SB 40. Despite Senator Steinberg's announcement, an informational hearing is set for today (August 24) before the Assembly Governmental Oversight Committee; notably, this is the first time that the issue is being heard on the Assembly side of the Capitol. However, the absence of a more coordinated effort and consensus among the California tribes almost certainly doomed the movement this year of either legislative proposal.
FLORIDA – Legislative committee hearings will begin in October. The intrastate Internet gaming issue in Florida is similar to the situation in California, i.e., there needs to be a consensus among the stakeholders (primarily consisting of the Seminole Tribe, the major card rooms, and the pari-mutuel industry) in order for legislation to get through the legislature and onto the Governor's desk.
NEW JERSEY – New Jersey State Senator Raymond J. Lesniak (who has been the major proponent of Internet gaming legislation in the state) recently sent a letter to U.S. Senators Harry Reid and John Kyl responding to the Senators' letter to Attorney General Eric Holder. The Reid/Kyl letter requested that the Attorney General oppose efforts to pass intrastate Internet gaming legislation. Senator Lesniak asserts that New Jersey should be permitted to exercise its rights as provided under federal and state law. It is anticipated that a new bill addressing the concerns of Governor Chris Christie will be submitted to the legislature in the coming months.
OVERVIEW – The economic challenges faced by each state, as well as the fact that the battle for control of the Presidency, the Congress (House and Senate), and many state legislatures is gearing up for an epic battle in 2012, creates a particularly challenging atmosphere for Internet gaming legislation at both the state and the federal level. The odds continue to favor state intrastate legislation being signed into law well ahead of any new federal Internet gaming legislation. Nonetheless, the situation is so volatile that it is important for worldwide gaming interests to pay close attention to both state and federal legislative activity since the situation could change dramatically depending upon the economic and political landscape in the coming months.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
