New legislation authorizing the New York State Gaming Commission to issue licenses for the operation of Internet Poker was introduced this past Friday in the New York State Senate by Senator John Bonacic.

The i-Poker legislation would authorize the Commission to issue up to 10 interactive gaming licenses to offer Internet Poker.  Each licensee would pay an upfront $10 million licensing fee and each license would be valid for 10 years.  The tax rate for i-Poker under the bill is set at 15% of gross gaming revenue.

Toughest Bad Boy Language To Date?

The legislation calls for a complete ban on the licensing of any applicant who “knowingly and willfully accepted or made available wagers” on poker or facilitated or otherwise provided services with respect to interactive gaming after December 31, 2006 unless those wagers were authorized by U.S. or state law (i.e. recently authorized under Nevada, New Jersey or Delaware law).

The bad boy provision further calls for a licensing ban on any applicant who acquired, directly or indirectly, a company outlined above.

Door Open for Interstate Compacts

The legislation provides the Commission with authority to determine whether and how New York state should enter into interstate compacts.

Timing

The legislation calls for Commission regulations within 6 months of the bill becoming law. No sooner than 6 months after regulations are adopted, the Commission would be authorized to begin issuing licenses.

A copy of the legislation is available here

Check back here for updates on this bill.