California Race Tracks won’t accept Pechanga’s Online Poker Compromise

Both politicians and gaming interests are on board with legal online poker in the state. The only problem is that card rooms, PokerStars, race tracks and tribes haven’t come to a mutual agreement yet. And the latter two groups figure to be even further apart based on what a rep for the race tracks recently said about one tribe’s iPoker proposal. Let’s discuss what this rep said along with why it could mean the end of any hopes for California online poker coming to fruition.

California Horse Racing exclusively operates on the Internet

Last month, Mark Macarro, chairman of the Pechanga Band of Luiseño Indians, suggested that his tribe is still against race tracks being in the online poker space. However, he did say that the two sides could compromise, with the tracks acting as affiliates that would get paid for driving traffic to the different tribes’ poker sites. But this doesn’t appeal to the Thoroughbred Owners of California at all, and their president, Joe Morris, explained the race tracks’ position.

“We feel that Internet space is really our space,” Morris told Online Poker Report. “If anyone enters that space, we want a seat at the table. We’re the only legal entity in it now, conducting business. We’ve done so without any challenges for the last 14 or so years.”

As Morris alluded to, the racing industry was approved to offer internet horse-race wagering within the state in 2000. He said that iPoker revenue sharing has been proposed in the past, but again, this isn’t something the tracks like because they aren’t getting an equal shot at obtaining licensing. Keith Brackpool, who represents a group of track owners called the Stonach Group, agrees with Morris’ thoughts and doesn’t like relying on scraps.

“I appreciate the offer, but we don’t believe at this stage that a level playing field would be the other part of the gaming community having a license and determining what morsel of that we would receive,” said Blackpool.

Not All Tribes are against Race Tracks in Online Poker

The Pechanga, Agua Caliente and Viejas Indian tribes are among the staunchest opponents of race tracks being involved with online poker. Their coalition of nine tribes believes that allowing tracks into the iPoker space blurs the lines between tribal exclusivity in offering casino-style gaming. Furthermore, they argue that, unlike commercial casinos, part of their revenue goes to funding state programs.

But there are other tribes that either don’t care if race tracks are involved and/or don’t want to share revenue with the tracks, believing that the latter should have their own poker sites and compete just like everybody else. The Morongo, Pala, Rincon, San Manuel and United Auburn Indian Community are open to free competition.

Can a California Online Poker Bill pass without Race Tracks?

One big reason why Macarro and Pechanga would welcome race tracks as affiliates or even through revenue sharing is because they know the power that tracks wield in this matter. Without tracks supporting California iPoker legislation, it’s possible that nothing ever gets passed.

Robyn Black, a lobbyist for the thoroughbred racing, strongly believes that a bill won’t make it out of legislation if the racing industry doesn’t offer backing.

“There are tribes that realize if they want to be successful, that they should probably include us,” Black explained. “Any discussion on Internet gaming has to include horse racing. It should not be exclusive to tribes. It should not be exclusive to card rooms.”

So, after years of discussion, it looks like the California online poker debate is still deadlocked. Looking at things right now, it seems that a monumental breakthrough is needed before an agreement is reached. And this isn’t even bringing PokerStars into the equation, which some tribes are also against.

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