DISTRICT OFFICE

1020 N STREET. ROOM 576 SACRAMENTO. CA 95814 TEL (916) 651-1529 FAX (916) 327-8754
DISTRICT OFFICE

(California *ate $enati

SENATOR

RULES COMMITTEE
CHAIR

PUBLIC SAFETY

5722 WATT AVENUE NORTH HIGHLANDS. CA 95660 TEL (916) 338 - 6577 FAX (916) 338 - 6586 STATE CAPITOL ROOM 205 SACRAMENTO, CA 95814 TEL (916) 651 - 4006 FAX (916) 323 - 2263

DARRELL STEINBERG
PRESIDENT PRO TEMPORE
SIXTH SENATE DISTRICT

August 22, 2011

Dear Stakeholder: Over the last decade, internet poker and internet gaming have both grown into multi-billion dollar industries worldwide. And, as you know, in the last three years legislative efforts have intensified to authorize intrastate internet gaming in California - so much so that it seems abundantly clear the issue is here to stay. We believe the concept of bringing intrastate internet gaming to California has merit and is worth pursuing in a smart, methodical way. But if we go down this road, it is important to strike a balance between the potential significant fiscal benefits to the state coffers, impacts on sovereign nations' interests as well as the conceivable positive and negative affects gambling has on our state. The Senate Governmental Organization Committee has held numerous hearings and has taken hours of testimony over the last several months on the issues and challenges surrounding intrastate internet gaming. These hearings have identified problems and solutions which have narrowed the differences between the proponents and opponents. Despite these efforts, significant, unresolved issues remain, including tribal exclusivity and waiver of sovereignty immunity, the types of games that would be authorized, who would be eligible to apply for gaming site licenses and potential federal constitutional questions. We believe that well thought out, fair solutions to these differences can be reached, but not before the end of this legislative year on September 9th, when Interim Study Recess is scheduled to begin. Rushing to meet a legislative deadline on an issue of such significance for our state and our people would be unwise. Having stated that, we also believe a significant amount of progress has been made on intrastate internet gaming to the point where, absent unforeseen circumstances, we fully expect an objective proposal will be developed during the interim in time

for consideration when the legislature reconvenes in 2012.

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The Senate Governmental Organization Committee will hold a hearing in January of 2012 for the purpose of moving a bill through the committee. Toward that end we strongly encourage you, as a Stakeholder, to be actively engaged during the interim in helping craft this objective proposal. This is the first year of a two-year session. There is time to get this right, and it is imperative that we do so. We will be in contact with you soon after we adjourn on September 9th to outline the process for continued discussion. Please feel free to contact Charles Wright with any comments or questions you may have. Thank you for your time. Sincerely,

DARRELL STEINBE
President pro Tempore

RODERICK D. WRIGHT, Chair

Governmental Organization Committee

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