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A Piece of the Pie

The California politicians are largely beginning to sway over to the side of internet poker regulation because of budget deficits largely, but certainly other factors. The UIGEA is a piece of federal legislation that was aimed at preventing offshore online casinos from accessing the US market. This legislation is not effective and California is reporting a huge black market of internet poker in the state. The offshore gambling companies are still able to access US gamblers and they have the added benefit of paying no taxes to the US and state governments. The State of California though wants a piece of the pie and a cut of some of the profits that are being made from the online poker industry in the state.

The online casinos are a lost cause at this point because of the Federal legislation in place; internet poker though is an entirely different story and there is a strong argument that the UIGEA does not apply to the game of poker because poker is skill based. This argument is far from fully sound at this point because the US government would need to approve the legalization of internet poker in California and there are some analysts who believe that just wont happen. On the flip side though, California politicians and the state government are watching millions of dollars annually go out of the country and certainly out of the state because offshore online casinos are able to still access US gamblers but take the profits elsewhere.

This issue has been on the table for quite some time in California and there is a growing level of support in the state. Because this is a very controversial area and California would be the first state to legalize internet poker in this way, there is a lot of consideration, time, and development that needs to happen before the state could pull off the legalization.