The state of California, the world's eighth largest economy, has been devastated by the global economic recession. It is looking at a $42 billion shortfall over the next 17 months and legislators are looking for ways to generate revenue. According to Gambling911, one of the solutions could be legalizing online poker:

California lawmakers are working to pass a measure that would legalize online poker. The state, which has been among the hardest hit by the current recession, would welcome some already existing online poker rooms, has learned. State representatives are slated to be speaking at an upcoming online gambling conference.

California had tried to pass a bill legalizing online poker last year.

"Their only obstacle is not a federal clampdown on Internet poker but rather the Indian casinos that will fight tooth and nail against it," a source tells

A bill was introduced last year, the California Gambling Control/Intrastate Online Poker Legalization Act, that intended to commission a full and proper study of the online poker phenomenon with a view to legalizing the pastime in California. Eventually that same bill added language that included the legalization of online poker.