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California Tribal Business Alliance releases report disputing revenue predictions
- 2-6-2010
The California Tribal Business Alliance (CTBA), an influential coalition of tribes with casinos released a report Friday criticizing an Inland tribe's proposal to legalize online poker in the state of California.
The study was conducted by Mike Genest, the former Director of the California Department of Finance, comes only a few days before a legislative hearing that would license and tax intrastate, internet poker, and estimates the revenue the state of California could generate if the proposal is approved. The proposal is currently at the Senate Governmental Organization Committee and will be discussed on February 9th.
"The proponents of this proposal to legalize internet poker in California are touting it as a major solution to our state's budget crisis. It was important to bring in a neutral third party to analyze the viability of this proposal as a revenue resource. I think the results clearly show the state needs to research some more feasible solutions." said CTBA Chairwoman Leslie Lohse.
According to the CTBA report, the project would cost the state an estimated $365 million annually in lost revenue-sharing payments from tribes that operate casinos in California. The state would earn up to $50 million from state-sanctioned internet poker, and concludes that many on-line poker players would continue to use unregistered, and offshore Web operators to avoid paying income tax.
"The proposal would result in an annual General Fund revenue reduction of $365 million, partially offset by an annual increase in revenue of up to $50 million and by an unknown, but probably not substantial increase in personal income tax collections.”states the report.
The report was not well received by several tribes. A spokesman for the Morongo Band of Mission Indians, currently trying to get support for a proposal to create a "tribal intrastate Internet poker consortium", criticized California Tribal Business Alliance and called the report a “non realistic and politically motivated document”.
“This goes to what we have said all along that California needs a regulated intrastate game that will offer consumers protection from unscrupulous operators and maximize revenue to the state'' commented Morongo's Spokesman Patrick Dorinson.
Discuss this article in our forum
The study was conducted by Mike Genest, the former Director of the California Department of Finance, comes only a few days before a legislative hearing that would license and tax intrastate, internet poker, and estimates the revenue the state of California could generate if the proposal is approved. The proposal is currently at the Senate Governmental Organization Committee and will be discussed on February 9th.
"The proponents of this proposal to legalize internet poker in California are touting it as a major solution to our state's budget crisis. It was important to bring in a neutral third party to analyze the viability of this proposal as a revenue resource. I think the results clearly show the state needs to research some more feasible solutions." said CTBA Chairwoman Leslie Lohse.
According to the CTBA report, the project would cost the state an estimated $365 million annually in lost revenue-sharing payments from tribes that operate casinos in California. The state would earn up to $50 million from state-sanctioned internet poker, and concludes that many on-line poker players would continue to use unregistered, and offshore Web operators to avoid paying income tax.
"The proposal would result in an annual General Fund revenue reduction of $365 million, partially offset by an annual increase in revenue of up to $50 million and by an unknown, but probably not substantial increase in personal income tax collections.”states the report.
The report was not well received by several tribes. A spokesman for the Morongo Band of Mission Indians, currently trying to get support for a proposal to create a "tribal intrastate Internet poker consortium", criticized California Tribal Business Alliance and called the report a “non realistic and politically motivated document”.
“This goes to what we have said all along that California needs a regulated intrastate game that will offer consumers protection from unscrupulous operators and maximize revenue to the state'' commented Morongo's Spokesman Patrick Dorinson.
Discuss this article in our forum