A combination of online poker rivalries and long political memories could spell trouble for legislation meant to keep open the card club at Hollywood Park Racetrack in Inglewood.
Hollywood Park is the only race track with a card club. Lawmakers have had to tweak the law over the years to reflect the fact that such clubs are more likely to be owned by publicly traded corporations or similar entities. That most recently happened in 2006.
Proponents of the recently amended legislation, Assembly Bill 1290, say it would clean up the 2006 law and ensure the continued operation of the card club, which provides nearly 1,000 jobs.
But influential tribes with casinos, such as the Morongo Band of Mission Indians near Banning, and some card clubs have come out against the latest measure, by Assemblyman Jerry Hill, D-South San Francisco.
Hollywood Park is owned by Stockbridge Capital Partners. The company’s clients are mostly large government pension funds, including CalPERS, that seek to diversify their holdings by investing in real estate. Stockbridge also is a developer of the former Bay Meadows race track south of San Francisco, which is in Hill’s district.
In addition, Stockbridge has a stake in the 1,720-room Sahara Hotel and Casino in Las Vegas.
That has raised concerns that AB 1290 reflects an attempt by Nevada gaming interests to gain a Golden State toe-hold for a future online poker marketplace, should California lawmakers ever legalize it.
“As the California Legislature pursues the legalization of online poker, this measure may be cited as precedent by other out-of-state, or even out-of-country gaming interests as a backdoor way to try and enter California’s market by simply purchasing an existing card club,” reads an opposition letter from the Morongo band.
An opposition letter from Commerce Casino, Bicycle Club, Hawaiian Gardens Casino, Hustler Casino, and Normandie Casino reads, “This type of legislative subterfuge should not be permitted to stand.
“This legislation is clearly intended to allow Stockbridge Corporation to own the Sahara Casino in Las Vegas, Nevada and simultaneously own Hollywood Park Casino. The initial draft of this bill language belies any attempt by Stockbridge to mask its true motivation,” it adds.
Some of the players also have unhappy political history.
Terrence E. Fancher manages Stockbridge investments. He’s also been an active political player, steering millions into campaigns in 2004 and 2008 that pitted horse tracks against the Morongo tribe and other tribes with casinos.
In the February 2008 election, Fancher was a driving force behind efforts to overturn casin0-expansion deals between the Schwarzenegger administration and the Morongo band, the Pechanga Band of Luiseno Indians near Temecula, the Agua Caliente Band of Cahuilla Indians in the Coachella Valley, and the Sycuan Band of Kumeyaay Indians in San Diego County. He steered at least $4.3 million into the anti-compact effort, which ultimately failed.
At the time, a spokesman said Fancher wanted the deals reworked to take into account the horse-racing industry’s struggles.
AB 1290 could have its first committee hearing. The legislative session ends Friday.
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