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California Senate leader co-sponsors Internet gambling bill California Senate leader co-sponsors Internet gambling bill

12-17-2014 , 12:40 PM
Quote:
Originally Posted by nebluefc
You seem to know quite a bit about the legislative side of online poker so I defer to you on that topic. But the operations of a software company is something I do have firsthand knowledge of. Getting prospects to convert to customers is tough. Even the most minor user experience flaw on a website can drive a person away.

Terrance Chan recently talked on the 2p2 podcast about Ultimate Poker's multi-page registration process. I'm paraphrasing and don't remember all the specifics but he said something along the lines of using website analytics to track a significant number of people that started the registration process but failed to finished for whatever reason. These people didn't want to pay poker enough and it lost UP potential players.

Regarding California and the in-person registration, I personally believe it would be a major hinderance and not at all presumptuous to say so. If this is the law we get, sure, the low hanging fruit will convert. I'll take work off on day 1 to make my deposit. But the guy who can do with or without online poker won't. The guy who gets the itch to play poker on a Friday evening but can't make the drive until Saturday morning probably won't see the value in doing so. There is a lot of money in California but plenty of entertainment to spend it on. I understand our legislators need to balance interests but in-person registration seems like a death knell to the California market. And it's a market that does have the potential to thrive.

Go to a VC and say I want to start an online software company and our business model requires in-person registration and see how much you get
So, do you believe that if this bill were to pass, none of the major players would bother with California because it wouldn't be profitable? I think that would be naive.

I think they will complain loudly, but at the end of it all, they will find a way to make it work.

But I also know that this bill is only prefiled, the debate has only just begun, and other bills are likely, so mulling these issues is all well and good, for now.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 01:54 PM
Hopefully Sheldon Anti-Christ Adelson has lighten a fire under the ass of the California pro-online poker interests.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 02:43 PM
Quote:
Originally Posted by curtinsea
So, do you believe that if this bill were to pass, none of the major players would bother with California because it wouldn't be profitable? I think that would be naive.
I never said anything remotely close to that. I said a lot of casual players wont bother signing up. In my opinion, in person registration prevents the CA market from reaching its full potential.

Last edited by nebluefc; 12-17-2014 at 02:58 PM.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 02:59 PM
Quote:
Originally Posted by nebluefc
I never said anything remotely close to that.
I posed a question, I didn't put words in your mouth.

But you did say it would be 'a death knell to the California market' which suggests you believe it would fail. I don't think that is the case at all. It certainly isn't going to take off like gangbusters, but rather it will take some adjustments.

Everyone has to get passed 'how it was' and get used to 'how it's going to be' in the future, because they aren't going to be the same by any stretch of the imagination. 2005 is long gone, models have to change to adjust to the new paradigm, players will have to adjust as well. I believe in time those rec players who can't be bothered to show up in person to open an account will do just that, and the game can thrive once more.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 03:28 PM
Again, this is just my opinion. But yes, I do believe that over regulation (and I hate using that phrase) could very well cause a company to cease their operations in CA. It happens all the time in pretty much every industry. Someone might setup shop, not meet expectations, and close it down two or three years in.

I know it won't be 2005 again and we'll need to make concessions but I am not willing to take in-person registration on the chin. But I am only one guy and its only my opinion.

No need to hinge on single words. I've presented my thoughts in a straightforward manner and don't expect everyone to agree with me.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 06:57 PM
Assemblyman Mike Gatto: I Approach Online Poker Regulation “With An Open Mind”

Quote:
California’s ongoing efforts to regulate online poker got off to an early start for 2015 when Assemblyman Mike Gatto prefiled AB 9 on December 2.

Gatto’s bill bears many similarities to, but differs in potentially key ways from, the legislative language floated by a tribal coalition last summer.

Marco Valerio conducted a phone interview with Gatto only hours after the bill was filed.

Their conversation revealed that Gatto had a bill ready to introduce last year, covers the Assemblyman’s assessment of poker’s chances in 2015 and why Gatto thinks his approach to the so-called bad actor issue is less aggressive than some might think.

Last edited by PokerXanadu; 12-17-2014 at 07:13 PM.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 07:18 PM
Quote:
Originally Posted by PokerXanadu
I suspect that the in-person-first-deposit clause was added not just to mollify those with concerns about underage gambling but more so to appease the smaller tribes and cardrooms that might not be able to be licensed. Instead, they can become satellite locations for the depositors, thereby gaining payment processing revenues and foot traffic.

I'd rather see a cap on new account deposits of something like $200, along with a lock on withdrawals, until the player does an in-person identity verification at a cardroom or casino. This will accomplish the same things without the roadblock to new account registrations.
I really believe the in-person first deposit is to appease the anti-money laundering crowd (in addition to the underage gambling concerns.)
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 07:22 PM
Quote:
Originally Posted by philcski
I really believe the in-person first deposit is to appease the anti-money laundering crowd (in addition to the underage gambling concerns.)
The interview with Gatto I linked just above answers this question: it's for those with concerns about underage, money-laundering prevention, cheating protections and giving the smaller tribes & cardrooms that can't afford a license a chance to participate.
California Senate leader co-sponsors Internet gambling bill Quote
12-17-2014 , 10:27 PM
Quote:
Originally Posted by PokerXanadu
The interview with Gatto I linked just above answers this question: it's for those with concerns about underage, money-laundering prevention, cheating protections and giving the smaller tribes & cardrooms that can't afford a license a chance to participate.
Makes sense, and good on Gatto for trying to find a middle ground which appeases as many parties as possible. While personally I think it would be obvious a person was laundering money with a simple algorithm to analyze their "play", it would be much tougher to get a politician, who knows little or nothing about poker, on board with algorithmic protection. Considering I should have died on September 11th, I'm all for a rule that slows down terrorism even in the slightest.

Why I think the in-person rule is less important than others: it is 6pm on Wednesday, during the holiday period, and there are currently 69 tables in play at Commerce right now. Unless you live in Mammoth Lakes or some other remote location, there is a potential deposit location within an hour of just about everywhere in California. Players will get that initial deposit out of the way and it will be an afterthought.
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 03:02 PM
Maybe it can be compromised to require in person on first deposit or withdrawal. That should help with identity Also skins for small casinos are workable, but skinning has issues with unbalancing ecology of different skins.

Small casinos will need a piece of the pie. Perhaps small casinos becoming affiliates of major licenses. I'm not sure the legislature is really equipped to figure this all out but it is a long process so many improvements will come to the bill if hearings and industry input can be incorporated.
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 03:20 PM
Requiring the first withdrawal (vs. deposit) to be in person would be a phenomenal compromise.

Lower the barrier to all the casual players (including non-B&M) to give online poker a whirl, then bring them to a B&M establishment at the point they're about to have extra cash in their pocket.
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 04:00 PM
Quote:
Originally Posted by Gramps
Requiring the first withdrawal (vs. deposit) to be in person would be a phenomenal compromise.

Lower the barrier to all the casual players (including non-B&M) to give online poker a whirl, then bring them to a B&M establishment at the point they're about to have extra cash in their pocket.
At first when I read this, I thought that was a brilliant idea. But,(and Im not very educated on how its done) my assumption is that they are more concerned with people coming in for identity verification before even playing on the site.
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 04:28 PM
Yeah, there's other concerns behind it - and the haze is a lot of us feel like it's going to create too high a barrier to player entry, damaging the chances of the California online poker ecosystem from ever achieving a sufficient & sustainable liquidity of games (for the operator costs involved).

Obv. fully regulated sites have player verification concerns the Party Pokers of a decade ago didn't have to deal with.

Another alternative would be setting a smaller initial deposit limit cap that gets lifted once a player does a full in person ID verification.

Create as low a barrier to entry for new players as possible to introduce them to the sites/games/new software without much effort, while still putting good safeguards in place & helping to create foot traffic/other revenue streams for smaller gaming establishments that won't have online rooms.

Spoiler:
Rehashing everything in this thread, but c'mon California - unlike NV or NJ you actually have a chance to do this well and make it work!!
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 06:46 PM
Quote:
Originally Posted by PokerXanadu
I suspect that the in-person-first-deposit clause was added not just to mollify those with concerns about underage gambling but more so to appease the smaller tribes and cardrooms that might not be able to be licensed. Instead, they can become satellite locations for the depositors, thereby gaining payment processing revenues and foot traffic.

I'd rather see a cap on new account deposits of something like $200, along with a lock on withdrawals, until the player does an in-person identity verification at a cardroom or casino. This will accomplish the same things without the roadblock to new account registrations.
It would not likely generate the foot traffic to the smaller casinos. I believe the figure banted around in the glory days of internet poker were less than 10% ever cashed out, and it may of been closer to 2%. I would seem to believe this version of internet poker will be no different.

A larger percentage of players would go over the $200 level in deposits, but I still would suspect a large number of casual players may never loose $200 and be the foot traffic they are looking for.
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 10:09 PM
Just to be clear, my suggestion is to set a $200 initial deposit cap - a player can make an initial deposit of up to $200 without a visit to a cardroom/casino. After that, if the player wants to make another deposit or any withdrawal, they have to visit a cardroom/casino for ID verification.

I think this proposal satisfies all the issues:

1. Money-laundering prevention.
2. Underage gambling protections - at the most, someone underage who somehow circumvents the online ID check at registration could only run up a $200 debt.
3. Cardroom/casino foot traffic - most players will eventually have to go. There may be some percentage of players who don't ever make a second deposit or a withdrawal, but those are unlikely to be cardroom/casino patrons anyway.
4. Cheating protections - they can't withdraw their ill-gotten gains without going to a cardroom/casino for verification.

There would also have to be a lock on player-to-player transfers until the in-person verification is completed.
California Senate leader co-sponsors Internet gambling bill Quote
12-18-2014 , 11:57 PM
While I agree with your points, PX, I think even the $200 max debt for minors you made in point 2 will still not win over the opponents.

I imagine many of them view gaming like drugs - 1 cent is too much. They may compare as such: "at worst, a minor would only be able to have smoked a couple joints."

I hope I'm wrong - your solution sounds like a logical compromise and I would still support it.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 08:25 AM
Quote:
Originally Posted by VanDaniels
While I agree with your points, PX, I think even the $200 max debt for minors you made in point 2 will still not win over the opponents.

I imagine many of them view gaming like drugs - 1 cent is too much. They may compare as such: "at worst, a minor would only be able to have smoked a couple joints."

I hope I'm wrong - your solution sounds like a logical compromise and I would still support it.
Those types of "opponents" won't be won over, period. The "in-person deposit" can win over those who are "concerned citizens", but not those who oppose online gambling on moral grounds.

The opponents' argument is that the underage can run up large debts (as seen in the Adelson video). The in-person deposit addresses this, but so would the initial-deposit cap. This would be our counter-argument, which doesn't change the minds of our opponents but does belay opposition from those who would be swayed by their argument.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 09:15 AM
California should go all in with online poker

Quote:
By Mike Gatto 6 p.m.Dec. 18, 2014

On March 4, 1946, President Harry Truman joined Winston Churchill for a train ride from Washington D.C. to Missouri, where Churchill was to give his famous “iron curtain” speech that would shape American foreign policy for decades. One might suspect that they passed the time during their long journey discussing geopolitics, world economics, or any number of issues that faced the free world in the aftermath of World War II. But the truth is that the two men, along with their cadre of advisers, blew off some steam and passed the time playing poker.

Millions of Californians also regularly play poker, and like everything else, poker gameplay is migrating online. California is an innovator in all things computer-related, with one major exception: online poker. The U.S. Department of Justice recently changed its policies and now allows states to legalize online poker. Nevada, New Jersey and Delaware have legalized online poker, but Californian has failed to take action.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 02:55 PM
having to make one deposit in a casino really is not a big deal.

jsut to pass it.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 05:07 PM
Agree with both sides, but I'd eat rotten fruit rather than die in hunger.

On the other hand, I went to WSOPc Southern California last week. The casino is about 1 hour from San Diego, and about 30 minutes from a reasonably-sized town Escondido. The casino is full of people on slots and table games. You can easily have those people sign up there and they can play online poker/other games after they went home. Not that bad if you think about it.


-jordyun
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 05:44 PM
you guys realize it is only the first deposit not every deposit right? really not a big deal.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 05:46 PM
whatever we lose from the people who wont deposit cause they wont go to a betting establishment is gained by the exposure of the advertising inside of these establishments imho.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 07:59 PM
Quote:
Originally Posted by jordyun
On the other hand, I went to WSOPc Southern California last week. The casino is about 1 hour from San Diego, and about 30 minutes from a reasonably-sized town Escondido. The casino is full of people on slots and table games. You can easily have those people sign up there and they can play online poker/other games after they went home. Not that bad if you think about it.


-jordyun
The vast majority of those people would not have been able to open an online poker account under this bill when the were at the casino because the bill requires two forms of ID plus bank account information for withdrawals at the time of account registration. Most people don't carry this around with them. It will pretty much only be players going to the casino/cardroom prepared in advance to sign up who will be registering for online poker under the current bill provisions.
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 08:44 PM
it sounds to me like a lot of people simply don't want it bad enough, and basically that is the whole reason the process is going so slow. Online players simply can't be bothered to take the most basic steps.

Small wonder the issue is so largely ignored
California Senate leader co-sponsors Internet gambling bill Quote
12-19-2014 , 10:29 PM
FTR - many places accept credit cards as a form of id as long as a photo id accompanies it.

2 forms of id can = drivers license and a credit card.

Though idk if that's a state by state thing or not.
California Senate leader co-sponsors Internet gambling bill Quote

      
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