The California Gambling Control/Intrastate Online Poker Legalization Act, AB 2026, a bill introduced by California Assemblyman Lloyd Levine (D-Van Nuys) which would open the door to legalize intrastate online poker in California has successfully skipped a series legislative obstacles and it is on its way to the Senate Appropriations Committee in August, which will define if the bill will pass to State Senate for the final vote. If the bill passes and get signed by the State governor, California would become the first state in the U.S to authorize the use of intrastate online poker services. The bill focuses on studying the viability of legalizing online poker and the possibility to authorize and implement online poker services within the state borders.

"This is an attempt to do what the federal government allows and provide people who want to play in California at least the opportunity to play internet poker in a way that they can be certain is safe and regulated." said Levine in and interview.

When the bill was brought to the Assembly in February, its intention was merely to revise and study the pros and cons of legalizing online poker in the California, but, after its approval in the Assembly and an intense deliberation in the Senate Governmental Organization Committee, some changes were implemented to the text sent to the Senate Appropriations Committee. The bill now requests the California Bureau of Gambling Control to consult with the California Gambling Control Commission the possibility to adopt regulations for intrastate internet poker by 2009.

With the approval of the Unlawful Internet Gaming Enforcement Act in 2006, a large list of online poker websites suspended their U.S business and started looking for new markets. But the UIGEA includes an exemption which permits each state to have intranet poker as long as certain conditions are met. Levine believes that his bill matches those conditions by regulating internet poker companies located in California offering the service to players living in the state. Also, the California legislative counsel examining the bill stated that "the operation of online poker for intrastate transactions qualifies under the UIGEA exemption and does not violate the four federal Acts referenced in UIGEA."

"It's a good sign that the legislators are taking this issue seriously, understand the importance of the bill and are asking the right questions. The plan going forward is to bring together the potential stakeholders to help craft a final version of the bill that protects Californians who play online and maximizes revenue for the state." said Jim Tabilio, president of Poker Voters of America.

But not everything looks peachy for the Interstate poker project; the bill has also gained some antagonist, including some tribal casinos which are worried about several issues regarding the new online poker business. The bill is clear that "licensed gambling establishments" would need to be registered with the Commission and will be charged a registration fee. According to the bill, "a licensed gambling establishment shall offer intrastate internet poker only on a network approved by CGCC containing internet websites that are registered with CGCC to offer that service. A licensed gambling establishment shall not offer internet poker independent of that network."

According to the estimates, there are about two million online poker players in California, in 2007; poker player from California called Anthony "Tuff Fish" Sandstrom introduced a petition to start a state-run online poker site for California residents. His petition was approved by the California Secretary of State, and scheduled for the February 2008 ballot, but was later forfeited by Sandstrom.