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Don't Count Your Chickens

The online casinos gambling industry is already jumping on board of a newly proposed research initiative in California that would look into legalizing internet poker in the state. Most forms of online gambling are banned in the United States based on the 2006 UIGEA which restricts financial transactions between the gambling companies and the U.S. financial and banking industry. And while many are eagerly awaiting the day when the Californian government will legalize online casinos poker gambling, that assumption is a bit premature considering the current proposal will only authorize a study into the implications of legalizing the activity in the state.

So far media reports indicate that the internet poker bill is likely to pass – after all there is no harm in at least looking into the potential revenues for legalizing the activity. Plus, many in the law field hypothesize that the UIGEA’s online casinos gambling ban would have no real affect on the state of California’s ability to legalize the pastime. On the flip side though the U.S. Department of Justice has released a preliminary opinion that any forms of online casinos poker gambling within the state would in fact violate the UIGEA regardless of the fact that the business would not involve offshore internet gambling companies.

A Professor at the Whittier Law School, I. Nelson Rose, commented on Representative Levine, the politician behind the California bill. Rose comments, “Levine thinks this bill might pass, because it only calls for a study. He is not that optimistic at the moment about legalization, because it appears not only the federal, but the state, Departments of Justice are saying it would violate federal law, even if it is entirely intra-state.” That obviously is contrary to past reports from law experts that initially reported that the UIGEA would not effect California internet poker legislation.