California state Assemblyman Lloyd Levine, has introduced a study bill that would clear the way for intrastate online poker in America’s most populous state. It is a development which, while it may not technically contravene the Wire Act or the UIGEA, could still raise concerns among banks and payment processing firms.

As California’s budget crisis continues to plague the Golden State, lawmakers and Governor Schwarzenegger are considering expanded gambling measures in an effort to lift the state from the depths of an unprecedented fiscal emergency.

A much-watched proposal that could bring about the introduction of legal intrastate online poker in the state of California cleared another legislative hurdle this week, but only by reintroducing a complex study requirement into the measure. Observers now believe that the cost of the study, and tribal doubts, will combine to sink the bill.

A study by a former state finance director warns that legalisation of internet poker in California could deprive state budget coffers of $365m annually because the games would violate gambling exclusivity agreements with tribal casinos.

Hammered by the economic downturn and plunging tax revenues, California is leading a growing number of US states which are exploring whether tribal objections can be overcome as they seek to establish intrastate online gambling within their own borders.

In recent years the Morongo's gaming operations have morphed into full-scale Las Vegas-style gambling. They've come some way since running an unassuming bingo hall in the early 1980s. And, approval of the tribe’s negotiated compact paves the way for further growth down the road, with authorization for significant expansion of their gaming operations.

The unveiling of the River Rock Casino Resort in 2002 represented a massive victory for the Dry Creek Band, as the tribe’s efforts to bring Las Vegas-style gaming to their northern California reservation were met with fervent opposition from neighboring communities and state officials. The venue benefits from its close proximity to Napa Valley and San Francisco, and was slated for a massive $300m overhaul, which is now indefinitely on hold, due to the current economic crisis.

The Agua Caliente appear particularly well placed to capitalize on further growth opportunities, following a fierce battle to renegotiate their compact agreement with some of California’s leading state officials. This authorization, however, came with a hefty price tag as the tribe are now required to contribute significant sums to the state’s general fund.

Supporters of online gambling regulation in the US are betting that changes will take place first on state level, but with proposals to study and regulate online poker now being mooted in Florida and California, insiders believe the would-be measures will be quickly shot down in the dog fight of state politics.

The opening of the Chukchansi Gold Resort and Casino in 2003 has led to tribal economic prosperity and fueled a surge in the local economy. Recently, in an effort to further swell the hordes of tourists that consistently flock to the region, the Chukchansi unveiled a $100m investment to enhance the venue.