This is supposed to be the year that California finally legalizes online poker. However, all bets may be off now that a potential corruption scandal involving a former casino enforcement chief has arisen.
Attorney General Kamala Harris is accusing Bob Lytle of engaging in a conflict of interest relating an investigation of the San Jose-based card room Casino M8trix. The card room was at the center of a $119 million skimming investigation at the end of 2007. Lytle is accused of telling gaming agents to back off investigating Casino M8trix, while he was also negotiating a contract to work with them. Just a month later, he left the Bureau of Gambling Control in 2007 to work as a compliance officer for Casino M8trix.
“(Lytle’s) receipt of such information and documents potentially compromised the effectiveness, and undermined the integrity, of the bureau’s investigations,” Harris stated in a Dec. 23 complaint filed with the Gambling Control Commission.
How does this hurt the push for California online poker?
At first glance, it doesn’t look like the troubles of an ex-casino enforcement chief and California iPoker have much in common. However, the problem is that, if this scandal is true, it could sour state politicians on any type of gaming expansion for the time being.
Richard Schuetz, a member of the state Gambling Control Commission, explained this point while speaking with Pechanga.net. “An accusation suggesting there is corruption within the regulatory environment could become a sticking point with respect to a desire to expand gambling in the state with iPoker,” Schuetz said.
Another problem is that Lytle was once part of the group that would be overseeing iPoker in the state. Some of the general public already has reservations about betting money through an internet website. So imagine their fear about playing on an online poker site that’s monitored by the same group of regulators who were part of a high-profile scandal.
Do rarity and time become a factor here?
Looking at things from the other side, it’s extremely rare for gaming control officials to get caught up in these type of scandals. In fact, it’s so rare that former gaming officials often get jobs in the private sector once they’ve gone through a “cooling-off” period from public office. So the question is if this one isolated incident could really be enough to throw California iPoker off track.
Another point worth considering is the length of time that’s passed since the alleged Casino M8trix incident. Even if Lytle did what he’s accused of, it’s been over seven years since he was head of the Bureau of Gambling Control. That said, would politicians and the public directly relate this problem with online poker seven years later?
Of course, iPoker enthusiasts may not have to worry about any of this if Lytle is cleared of wrongdoing. As of of now, this is just an investigation. So hopefully Lytle didn’t do anything too bad and this won’t become a black eye on California online poker’s future.