[Note: I also posted this at 2+2 to reach a larger audience]

I'm thinking of California specifically as a place to try this, but any state with an initiative and referendum process would do.

The idea is to introduce a ballot initiative, presented so that its chances of passing are maximal, legalizing online poker/gaming for state residents.

Here is what I envision as the initiative's characteristics:

1. Gambling in violation of the wire act is a low level misdemeanor.

-this allows the initiative to be presented as cracking down on illegal online gambling, without actually changing the rules on what types of gambling are allowed.

2. State licensed casinos/cardrooms and Indian casinos are granted an online gaming license. They are allowed to offer the state-sanctioned games that they currently offer.

-this turns one of our strongest opponents into an ally.

3. Initial signup and ID check must be done in person.

-this is what we point to when someone complains about underage gambling.

4. Steps must be taken to ensure that the person gambling is located in the state (IP checks or phone calls or something else perhaps).

5. The software used is inspected/regulated by the state gaming control board, similar to Vegas slot machine regulation.

-this cuts down on "RIGGED!!!"

6. The operators must have processes to identify and ban problem gamblers (and perhaps even have some sort of loss limit for everyone).

-this is what we point to when asked about problem gamblers or people losing their rent money.
-we can emphasize that it's much easier to track this online than in person.

7. Credit cards can't be used for deposit.

-not sure about this one, may be necessary to cut down on fraud and satisfy worries about people going into debt.

Thoughts? I think something like this has a chance of passing, especially if we emphasize how many people gamble online at unregulated offshore sites and this is a solution to that problem, as well as providing increased taxes.

If this passes, I think it may also have a WTO effect later on down the line.

I have given this angle considerable thought. Problem is it is only open to players in California. Any tribal internet based gaming requires a new state-tribe gaming compact, and is not something we can do through the initiative process. That said, California is often the leader in new legislation and I think that we would have a fighting chance at passing this type of initiative.

There is a current moratorium on issuance of new cardroom licenses through 2010. That can be changed by the initiative process also.

Other problems include finding gaming interests/tribes that will recognize the opportunity and seize it. There are a lot of questions without answers.

If there is sufficient interest in this angle, I would be willing to be actively involved in drafting the initiative.