PPA and California Rooms Argue on HR 2267

According to RakeRace.com, an unusually grim debate seems to evolve between the Poker Players Alliance and top California-based card rooms. The dispute revolves around the Congressional testimony from Commerce Casino board member Tom Malkasian on HR 2267.

In July, Malkasian testified against the bill before the House Financial Services Committee. First, he questioned the revenue estimations that forecast about $42 billion tax income in 10 years: “The problem with these estimates is that they are all built on false assumptions and conflicting representations,” he stated. He added that with the states being allowed to opt out, the revenues were even less guaranteed. This would also mean that “supporters of HR 2267 are straddling two conflicting claims” as they could either have the estimated incomes or the option for opt-out.

Concluding that the framework of the bill wasn’t capable of regulating the industry, Malkasian evoked the fury of the PPA as well as several professional poker players, including Doyle Brunson, Tom Dwan, Chris Ferguson, Daniel Negreanu, Patrik Antonius and Phil Ivey. They released an open letter, signed by over 6,800 to date, accusing him and the Commerce of putting their “narrow corporate interests ahead of the interests of America’s poker players.” They also argued that “HR 2267 will create a U.S. regulated online poker framework in this country, requiring all online poker sites to measure up to strict safety and consumer protection standards – requirements that do not exist today.”

Malkasian, however, would not back off: he states that the bill would allow offshore companies to operate in the US, “siphoning millions of American dollars out” of the country. As the Commerce was joined by other top card rooms, like the Bicycle Casino, the Hawaiian Gardens and the Hollywood Park, they claim to represent 20,000 employees in total; the fear from the loss of jobs, together with the incomes, thus plays key role in their arguments.

Meanwhile, the PPA and its supporters argue that online gambling actually brings players to “brick-and-mortar” rooms as many test their skill first or qualify for live tournaments online. Executive Director John Pappas stated in response to the casinos’ joint press release that he believed the true reason behind their opposition was that they didn’t feel strong enough to face the competition of online operators.

Whatever the outcome will be, and regardless of which side are you on, I think we should agree with the PPA on that “it is disheartening that one of our own in the poker community” induces tension within the same team. Such issues are harmful for the community and weaken it in front of the true opponents; for poker, both online and live, will always have many.