The bill directs the California State Gambling Control Commission, in conjunction with the state Department of Justice, to perform a study regarding authorization of intrastate Internet poker pursuant to the Federal Unlawful Internet Gambling Enforcement Act of 2006, which allows individual states to legalize and regulate intrastate online gambling.

The goal is to have the study result in appropriate language for intrastate poker legalization that can be considered and passed in 2008.

Poker Voters of America has agreed to serve as the official citizen sponsor of the legislation, working with representatives of Assemblyman Levine's office, as well as representatives of the California Attorney General's Bureau of Gambling Control; the California Assembly Speaker's Office, the Office of the Senate President pro Tem, and other state officials to help expedite an agenda and timeline for consideration and passage of AB 2026. Poker Voters will also seek out the expertise and advice of the broadest possible range of those experienced in the gaming industry in order to help create an open process that allows state officials to produce the best possible bill for final passage.

Poker Voters will also assume the role of generating public and media awareness and grassroots political support for passage of AB 2026 in its final form.

The goals of Poker Voters in supporting AB 2026 include legislation that:

• CONFORMS to Federal law to allow the fastest possible startup time for California intrastate online poker operations;
• PROTECTS California players against cheating, fraud and online identitiy theft by licensing legal, secure and regulated alternatives to offshore online poker;
• INCORPORATES input from California citizens, law enforcement and gaming experts to insure that California's legal intrastate sites are competitive and economically viable;
• GENERATES the highest level of revenue for the state, while providing maximum protection and security for players.

1. REVENUE: UNLICENSED, UNTAXED AND UNREGULATED GAMBLING SITES MEAN LOST REVENUE FOR CALIFORNIA

Online gambling, especially online poker generates an estimated $15 billion in revenue per year for the operators of offshore gambling websites. It is estimated that millions of Californians currently play poker online at offshore, unregulated, unlicensed poker websites, from which the state of California realizes no revenue whatsoever. In the state's current fiscal condition, we cannot overlook any potential source of revenue. AB 2026 will authorize a study to determine how the state can legalize, regulate, license and tax intrastate online poker sites within the state boundaries (as permitted by Federal law) in order to collect the state's fair share of taxes on online poker to benefit California's taxpayers.

2. LAW ENFORCEMENT: UNLICENSED AND UNREGULATED GAMBLING SITES OFFER NO PROTECTION AGAINST IDENTITY THEFT, AGAINST ALLOWING UNDERAGE PLAYERS TO GAMBLE, AND NO OVERSIGHT TO GUARANTEE CALIFORNIANS ARE NOT CHEATED

AB 2026 will study current technologies that can allow our own law enforcement agencies in the state to oversee licensed and regulated intrastate poker websites and compel those sites to obey laws against underage players, enforce regulations that protect California players from identity theft and employ technologies to prevent cheating – none of which are possible in the current climate with millions of Californians playing poker on offshore, unregulated and unlicensed poker websites.

3. CONSUMER PROTECTION: UNLICENSED AND UNREGULATED GAMBLING SITES OFFER NO PROTECTION OF SENSITIVE FINANCIAL DATA FOR CALIFORNIA PLAYERS

Because offshore gambling websites are not licensed and regulated, Californians who play poker on these sites have no guarantee of security to protect their sensitive personal financial information when they when they use a credit card or provide other financial information to such a site. AB 2026 will study the ability of the state to provide strong online consumer protections – including security for personal financial information and guarantees that players will be paid — to Californians when the state licenses and regulates intrastate poker websites. Also, legalization of intrastate online poker with allow American banks, credit card companies and other financial institutions to transfer players' funds to and from legal, licensed and regulated sites making such transfers much safer and more convenient for players.