Online gaming company bwin.party is readying itself to enter the California online poker market should the game become legalized in the state. The operator of bwin.com and PartyPoker.com, bwin.party announced Tuesday that it has inked an agreement with the United Auburn Indian Community (UAIC) to provide online poker games to residents of California when and if pro-online gaming legislation passes in the state.
“California is the largest state in the U.S. in terms of population and is known to have a significant number of poker players who like to play poker online. Combining our own significant assets and resources with those of UAIC will create a strong partnership that is well-placed to seize the opportunities that will arise if appropriate online poker legislation is enacted in the Golden State,” said Jim Ryan and Norbert Teufelberger, Co-CEOs of bwin.party, in a press release.
The UAIC operates the Thunder Valley Casino Resort in Lincoln, California, about 20 miles northeast of Sacramento. As such, the tribe would qualify to apply for an online poker license, according to currently proposed legislation in the state Senate. bwin.party would supply the necessary technology as well as the company’s experience in operations.
Senate Bill 1463, the Gambling Control Act, was introduced by State Senators Rod Wright and Darrel Steinberg on February 24, 2012 and would make online poker legal within state borders. After two years, the legislature could evaluate how things have gone and potentially legalize other casino games.
“We see the legalisation of Internet poker and other Internet gaming as being inevitable,” said David Keyser, Tribal Chairman of UAIC. “Having met with representatives from a number of different online gaming companies, bwin.party was our first choice as partner. With its unrivalled expertise in online poker, proven technology and player loyalty we are confident of being able to maximise the revenue opportunity from a regulated online poker market in California and to continue to enhance the long-term prosperity of our community.”
This is not the first time bwin.party has found an American partner for a possible entry into the United States online gaming market. Last year, the company entered into agreements with both MGM Resorts International and Boyd Gaming and announced its intention in March to seek a license in Nevada should intrastate online poker be legalized in the state. Like with California, a potential operator must partner with a company with a state gaming license. If either MGM or Boyd is awarded a license, bwin.party will provide the poker software and take care of the site’s maintenance.
Under the rules of SB 1463, a California license would be good for ten years and each licensee will be required to pay a nonrefundable $30 million license fee. The bill also proposes a tax rate of 10 percent of gross gaming revenue.
