On The Money: Internet Poker
By Mike Luery
SACRAMENTO (CBS13) -- Some people are seeing red over a plan to generate some green for California, by legalizing Internet poker. But will it help put the state in the black, or is it a bad gamble for taxpayers?
Poker is one of the most popular games at legal card rooms across the state. Yet playing poker online is against the law – although that may change. With California so deep in debt, there's a move at the Capitol to regulate and legalize Internet poker.
Supporters say online poker could help balance the state budget by creating new revenue without raising taxes. One study, conducted by California's former Finance Director Tim Gage, says Internet poker could be an economic shot in the arm.
Gage, now a principal with Blue Sky Consulting Group, told CBS 13, "Within a 5 year period, we think that online poker could generate upwards of $100 million a year. And over a 10 year period, could generate about a billion dollars."
So online poker could bring a billion dollars and over 1,100 new jobs for California, according to the study.
But would Internet poker hurt the bottom line for card rooms? After all, they depend on real, not virtual customers. The owner of Capitol Casino said getting an online poker license would help his business.
"I think it's a win win!" said Clarke Rosa. The Capitol Casino owner stated Internet poker would be good, "for everybody - card clubs, Indian casinos, State of California, employment."
But critics say Internet poker is a big gamble.
"It's going to cost us more than we will make," said Reverend Jim Butler, who serves as Executive Director of the California Coalition Against Gambling Expansion.
Butler believes online poker is a bad deal for California. He cited several studies showing that Internet gambling would likely result in an increase in crime, unemployment and housing foreclosures from desperate people addicted to gambling.
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"We don't think this legislature should make it possible for someone to lose their house, without ever leaving home," Butler told CBS 13.
There's a lot riding on chips as California ponders the economics of online poker. Two bills now circulating at the Capitol would legalize online poker.
Legalizing online poker is controversial and you can bet on a big fight in the months ahead.
If you have a story idea for On The Money, send us an e-mail to onthemoney@kovr.com. You can also follow On The Money stories in progress via Twitter at http://twitter.com/#!/mikeluery
