Staff California Poker Flag

Online poker advocates have been trying to encourage California lawmakers to pass an online poker bill for years. Every effort has failed to make any headway. However, the state legislature may pursue online poker more ambitiously as it realizes the potential revenue it could generate. A new study by Academicon and PokerScout may help motivate them to legalize online poker to benefit the state’s card rooms and casinos as well as raising new revenue to cut the state’s deficit.

The new study shows that online poker could generate up to $263 million in its first year. Revenue could grow to $384 million within a decade.

The authors of the study studied online poker transactions between 2009 and 2010, when the U.S. market was at its peak. They used these figures as a baseline for the projections. Professor Kahlil Philander, one casino online of the authors who headed the study, said that the market would probably be larger when online poker was fully regulated.

California has more prospective players and would be the largest online poker market in the country. It is one of the few states that could sustain an online poker market on its own. However, there are still a number of variables that could affect the size of the industry. The consumption tax would significantly impact the size of the market. However, the biggest factor that could play a role would be Congress’s decision to either open online poker to other states or limit access to California residents.

California regulators are discussing possible compacts (although unlikely) with their colleagues in New Jersey, Nevada and other states considering legalizing online gambling. Most professionals believe that they would form partnerships with these states. However, if online poker was limited to California residents then the 10 year revenue projections would be $120 million lower.

Staff
Staff - Various members of the staff at CaliforniaOnlinePoker.com contributed to this report.