1. Gambling Legal In California
  2. Gambling Illegal In California
  3. Is Gambling Illegal In California
  • California gambling laws are a mess of state regulations and town-level laws, but in most cases participating in an illegal game of chance would be considered a misdemeanor. Nevertheless, the California code does not mention online gambling specifically and the state doesn’t really have all that many broad regulations that could be applied to.
  • Is Online Gambling Legal in California? These days, the United States is one of the more confusing countries in the world when it comes to online gambling laws, with dozens of states having different rules and nuances of how they treat the topic. When it comes to California, it is perhaps the unique exception.
  • Gambling or gaming activity is regulated by several different agencies in California. The list below will direct you to the responsible entity. Illegal gambling activity, cardroom activities, background checks, game rules, and self-exclusion at cardrooms Bureau of Gambling Control.

California has many options for those who are interested in legal gambling, although sports gambling is not currently available in the state. While the US Supreme Court lifted restrictions on sports gambling in 2018 and many states followed with legalization, California has not yet followed suit.

Still, the state has a long history of card rooms, horse racing, a state lottery, and tribal casinos. Further, there was a push to place a constitutional amendment on the ballot in November of 2019 to legalize sports betting.

However, as gaming laws again became more restrictive after World War II the desert town of Las Vegas became an attractive target for investment by crime figures such as New York's Bugsy Siegel. The town rapidly developed during the 1950's, quickly eclipsing the popularity of illegal gambling empires such as Galveston.

In the past few years, California has seen legislation proposing the legalization of online poker. California may be in the opening act of expanding gambling options in the state.

Does California Have State-Regulated Online Gambling?

California does not currently have state-regulated online gambling. While there have been attempts to adopt legislation in this area, so far, the state has not enacted laws regarding online gambling.

Legal Progress On Poker Gambling In California

In 2008, Assembly Member Levine introduced AB 2026 in the California State Assembly to perform a study on allowing intrastate poker. The study focused on regulatory oversight of online gambling, technology, economic benefits to the state, and the types of games that might be allowed, among other matters. Ultimately, the Assembly failed to pass AB 2026, and the study did not move forward.

Another bill was introduced in 2016 to legalize online poker. Assembly Members Gray and Jones-Sawyer introduced AB 2863, the Internet Poker Consumer Protection Act of 2016, to allow intrastate poker. Licensed operators would have been required by the Act to deposit $12.5 million into the California general fund while paying 10 percent of their revenues to the state. The Act also included a concession of $57 million to be paid into a fund for the benefit of California horse racing tracks. Unfortunately, the bill never went up for a vote.

Legal Progress On Sports Betting In California

There may be movement on sports betting in California in 2020, including online options. California legislators held a general informational hearing in January of 2020 in Sacramento on sports betting with representatives from online sportsbooks in attendance.

In addition, several of California’s Indian tribes filed a petition to place a measure for sports betting on the November 2020 ballot. That petition would limit sports betting to physical locations at tribal casinos and would not allow any type of online betting. The petition appeared to be well on the way to gathering enough signatures to appear on the ballot.

However, with the COVID-19 pandemic interrupting the collection of signatures, that began to seem uncertain. In June 2020, state legislators pressed pause on the bill. It will not be presented to the voters until November 2022.

Are Sweepstakes Allowed Under California Gambling Law?

Sweepstakes are legal under California law, although sweepstakes entities must be careful to meet the legal requirements for this type of contest. If the rules are not followed correctly, the contest could easily be construed as a lottery, which is illegal. The legal elements of a lottery are:

  1. Giving a prize to a winner.
  2. The contest is determined by chance.
  3. A person pays “consideration” to participate in the contest.

Courts construe “consideration” broadly. It is more than just paying a fee to enter the contest. Consideration can include requirements such as opening a bank account to participate or even filling out a lengthy survey.

Legalized

The main difference between an illegal lottery and sweepstakes is the lack of consideration for entering the sweepstakes. In fact, any solicitation materials for a sweepstakes entry in California must prominently display a “clear and conspicuous statement” that there is no purchase or payment for entering the contest. As long as online sweepstakes sites follow the relevant regulations, California does allow them to operate.

See our guides to Sweepstakes Casinos and Sweepstakes Poker in California.

How Do Tribal Casinos Work In California?

Thanks to a significant 1987 US Supreme Court ruling originating out of California, tribes may now operate tribal casinos on reservation lands throughout the country. The Supreme Court case overruled any restrictions on gaming on Indian reservations. In that case, two tribes (the Cabazon and Morongo Bands) were operating small bingo parlors and card rooms on reservation lands near Palm Springs. The State of California sought to close down the operations, stating they violated state regulations.

In its decision, the Supreme Court relied on its prior rulings from the 1830s that Indian tribes are independent political communities, thereby granting the tribes sovereign immunity. The Court held that since California did not prohibit gambling on a criminal basis, the state could not regulate gaming on reservation lands.

In response to that ruling, California voters approved Proposition 1A in 2000. Proposition 1A allows the governor to negotiate compacts with tribes on reservations in the state to offer various types of gambling. The State and tribes have since entered into a number of different compacts to permit gaming. As a result, there are now many tribal casinos operating in California.

See our Guide To Tribal Casinos In California.

Gambling Illegal In California

Do Tribes Offer Online Gambling?

At this time, tribes in California do not offer online gambling. As noted previously, attempts to legalize online poker have thus far failed. Tribes were pushing for a ballot measure for the November 2020 election to allow sports gambling, but only in physical tribal casinos. It seems this measure will not be put to voters until November 2022.

What Games Can Tribes Offer At Casinos?

Gambling Illegal In California

Under the Indian Gaming Regulatory Act (IGRA) passed by Congress in 1988, tribal casinos can offer a number of different games defined by various classes. Class I games include games that are for minimal value and traditional forms of Indian gaming. They are only regulated by the tribes.

Class II games include bingo, lotto, and poker. In these games, the participants are competing against each other and not against the house. Tribes can offer as many of these games as they want. Class II games are not subject to regulation by the states.

The IGRA also allows tribes to offer Class III games. These include all other types of gambling like slot machines, electronic games of chance, and many banked card games like blackjack. To offer these games, the games must be legal under the state laws, and the tribe must negotiate a compact with the state to permit the games.

California negotiated some compacts with tribes, but many prominent Las Vegas-style games are missing. The State of California has previously held that craps, roulette, and dice-games based on chance are prohibited under the state constitution and laws. Thus, you will not see these types of games in California casinos. Many tribal casinos have come up with some interesting workarounds to offer substantially similar games.

Are All Casinos In California Tribal Casinos?

All legally defined casinos in California are tribal casinos. Some card rooms may contain the word “casino” in their names. Legally, they are not casinos but instead are regulated as California card rooms by state law.

How Do Card Clubs Work in California?

Card rooms in California allow players to gamble against each other instead of the “house.” At tribal casinos, the dealer working for the casino is also the banker, paying out winners and taking money from losers. This is different from card rooms. At most card rooms, an employee serves as the dealer, and an independent third party is the banker. The card rooms make money by assessing a fee on each hand.

What Games Do Card Clubs Offer?

Poker is the main game at California card rooms. Card rooms offer other casino table games like baccarat, pai gow poker, and blackjack, referred to generally as “California” games. These games are not played the same way as they are at casinos. Regulations require that the players take turns as the dealer. If a player does not want to deal, the dealer employee will take up the task. At a casino, an employee would be the dealer all the time.

Who Can Operate A Card Club?

A business that wants to operate a card room must obtain a valid state gambling license from the California Bureau of Gaming Control and the California Gambling Control Commission. The Bureau conducts a background investigation to see if the applicant is suitable for a license. The question of suitability is based on multiple factors, including:

  1. Honesty.
  2. General character.
  3. Reputation.
  4. Habits.
  5. Financial and criminal history.

The Bureau ensures that gambling activities are conducted honestly and free from corruption and other interference. All supervisors working for a card room must also have a license as a critical employee by the Bureau.

Currently, and since 1995, there is a moratorium on new card room licenses. There is hope that the government will lift this moratorium by 2023.

Betting On Horse Races In California

California has a long history of horse racing. In 1933, California voters approved Proposition 5 legalizing pari-mutuel wagering on horse races. Since then, several iconic venues for horse racing have been operating in the state. The California Horse Racing Board (CHRB) is the governmental body that oversees horse racing.

The CHRB is responsible for enforcement of a number of different regulations. In June of 2019, Governor Newsom signed a bill into law granting the CHRB the power to suspend horse racing licenses for the safety of the horses. The Santa Ana venue had been in the news for a high number of horse deaths in 2018 and 2019. The CHRB also enforces the rules related to wagering on horse races.

See our Guide To Horse Racing In California.

Legalized gambling in california

Legal Online Betting In California

Online betting for horse races became legal in California in 2002. It is known as advance deposit wagering. This process allows a participant to place funds in an account with a licensee. The participant then directs the licensee to place wagers on behalf of the participant. The CHRB regulates advance deposit wagering both inside and outside of California.

Where Else Can You Place Horse Racing Bets?

Off-track betting is legal in California. California authorized satellite horse racing wagering in a law passed in 1984 and expanded in 1987. The satellite facilities offer off-track betting from horse races around the country. In addition, the state enacted legislation in 2007, allowing “mini-satellite” wagering facilities, as long as the location is not within 20 miles of another facility that offers betting. Card rooms may operate a mini-satellite facility.

The California State Lottery

Illegal

California offers a state lottery. Proposition 37, passed in 1984, established the lottery. California voters approved the Proposition by a margin of 58 percent. It amended the California constitution to allow the state lottery to begin operating, with the first tickets sold in October of 1985.

Governor Schwarzenegger approved Assembly Bill No. 142 in 2010, which reallocated lottery revenues to maximize the benefit to public education. The bill also required 87 percent of revenue to be returned to the public in the form of prizes.

California began offering Powerball in 2013. Unlike other states participating in the Powerball, it offers pari-mutuel payouts for winners. A California Supreme Court case from 1996 upheld restrictions based on the California penal code that require the use of pari-mutuel payouts. As a result, a lottery winner in California may receive a different payout for a prize than a winner in other states.

Can You Buy Lottery Tickets Online In California?

A player cannot buy tickets online directly from the California lottery. Some services do offer the ability to purchase tickets online. These are known as courier services that buy the tickets on a participant’s behalf for a fee. They do not take any portion of the winnings. Further, neither the state nor the lottery endorses these services.

Who Regulates Legal Gambling In California?

A number of different governmental entities regulate legal gambling in California. The California Assembly and Legislature have the power to pass legislation impacting and authorizing new forms of gambling. The Bureau of Gambling Control and the California Gambling Control Commission regulate a lot of gambling activity in the state under a bifurcated system. The Bureau upholds the integrity of gambling in California. The Commission sets minimum standards for gambling in the state and grants licenses only for the appropriate individuals. These entities regulate the tribal casinos as well as card rooms.

As noted earlier, the California Horse Racing Board (CHRB) is responsible for regulating horse race betting. California established the CHRB in 1933. The governor appoints seven members to serve on the CHRB. The CHRB has broad regulatory authority over the horse racing industry. It regulates everything from the granting of licenses, to betting on races, to track safety.

Is online gambling illegal in california

With regard to the lottery, the governor appoints five members to the California Lottery Commission. The Commission approves the budget and business plan for the state lottery.

What Would It Take To Expand Gambling In California?

The California legislature needs to act to expand gambling in a meaningful way. Alternatively, a petition that would expand gambling could be put on the ballot. The main areas ripe for expansion are online poker and sports gambling. California may be more receptive to expanding in both those areas as it faces a severe budgetary shortfall due to the COVID-19 pandemic. Legislators may be looking at possible additional revenue to help during this uncertain time.

However, there are several different interests at play in the state. For example, it appears that tribal casinos want sports gambling only at physical locations, while other parties favor online options. The next few years will likely see movement and debate on the expansion of gambling in California. How this will play out remains to be seen.

Legal forms of gambling in the U.S. state of California include cardrooms, Indian casinos, the California State Lottery, parimutuel wagering on horse racing, and charitable gaming. Commercial casino-style gaming is prohibited.

Cardrooms[edit]

Licensed cardrooms may offer approved card games in which players vie against each other (rather than against the house), such as poker.[1] As of 2019, there were 66 cardrooms operating in the state (and another 21 licensed but not operating).[2] Since 1995, there has been a moratorium on new cardrooms.[3][4] The industry generated $850 million in revenue after payouts in 2018.[3]

Non-banked card games such as poker have always been legal in the state.[5] The California Penal Code, enacted in 1872, prohibited several casino games by name, as well as all house-banked games, but did not outlaw poker.[6] Cardrooms also operate non-banked versions of card games such as Pai Gow Poker, where players can take turns playing the dealer hand against the other players.[7] Statewide cardroom regulations were enacted in 1984.[8] In 1997, the Gambling Control Act was adopted, which created the California Gambling Control Commission to regulate California cardrooms.[8]

Charitable gaming[edit]

Eligible nonprofit organizations may operate bingo games,[9]raffles,[10] and poker nights.[11] Organizations are limited to one poker night per year.[11]

State voters in 1976 approved a constitutional amendment allowing counties and cities to legalize charitable bingo.[12][13] An amendment to allow charitable raffles passed in 2000, and enabling legislation went into effect in 2001.[14][15] Legislation allowing poker night fundraisers took effect in 2007.[16][17]

Parimutuel wagering[edit]

Parimutuel wagering on horse racing is permitted at racetracks and satellite wagering facilities, and online through advance-deposit wagering providers.[18][19] Extended racing meets are held throughout the year at five tracks: Cal Expo, Del Mar, Golden Gate Fields, Los Alamitos, and Santa Anita.[20] Four other fairgrounds tracks hold brief meets in the summer and early fall.[20] There are 27 satellite wagering facilities throughout the state, most of them found at county fairgrounds, cardrooms, and tribal casinos.[21] Racing and wagering is regulated by the California Horse Racing Board.[22] As of 2018, the annual amount wagered on California races was $3.2 billion, with $662 million retained after payouts.[23]

Horse race wagering was legalized by voter referendum in 1933.[24] Satellite wagering was first legalized at fairgrounds in 1985,[25] and was expanded to private facilities in 2008.[26] Advance-deposit wagering became legal in 2002.[27]

Indian gaming[edit]

Federally recognized tribes can operate casinos under the federal Indian Gaming Regulatory Act. As of 2019, there were 63 casinos operated by 61 different tribes.[28] The industry generates approximately $8 billion in annual revenue after payouts.[3] Pursuant to tribal-state compacts negotiated with the state, tribes with larger casinos share a portion of their revenues with non-gaming or limited gaming tribes (those with fewer than 350 slot machines).[29]

Lottery[edit]

The California State Lottery offers scratchcards and draw games, including the multi-state Powerball and Mega Millions games.[30]

The Lottery was approved by voter referendum in 1984 and sold its first tickets in 1985.[31]

See also[edit]

Is Gambling Illegal In California

References[edit]

  1. ^Charlene Wear Simmons (May 2006). Gambling in the Golden State 1998 Forward(PDF) (Report). California State Library. p. 107. Retrieved 2016-07-21.
  2. ^'Active Gambling Establishments in California'. California Gambling Control Commission. Retrieved 2019-03-02.
  3. ^ abc'Overview of Gambling in California'(PDF). Legislative Analyst's Office. February 2019. Retrieved 2019-02-28.
  4. ^SB 654: Local moratorium: Gambling tables(PDF) (Report). Assembly Committee on Governmental Organization. June 21, 2017. p. 2. Retrieved 2019-03-02.
  5. ^Analysis of AB 317 (Report). Office of Senate Floor Analyses. 1999. Retrieved 2016-07-28.
  6. ^Tibbetts v. Van de Kamp, 222 Cal. App. 3d 392, 393-94 (1990).
  7. ^Cal. Penal Code Sec. 330.11; Bell Gardens v. City of Los Angeles, 231 Cal. App .3d 1563, 1568 (1991); California Gambling Law Resources
  8. ^ ab'Bureau of Gambling Control'. Office of the Attorney General. Retrieved 2016-07-29.
  9. ^Charlie LeDuff (November 25, 2002). 'California bingo hall plays on world stage'. Los Angeles Times. Retrieved 2016-07-20.
  10. ^'Raffles'. Office of the Attorney General. Retrieved 2016-07-20.
  11. ^ ab'Nonprofit Organization Gambling Fundraiser Registration Program'. Office of the Attorney General. Retrieved 2016-07-20.
  12. ^Joseph R. Grodin; Michael B. Salerno; Darien Shanske (2015). The California State Constitution. Oxford University Press. pp. 166–167.
  13. ^'Opinion No. 96-1011'(PDF). Office of the Attorney General of California. December 31, 1998. p. 2.
  14. ^Michael Gardner (July 17, 2000). 'Raffles leave lawmakers in quandary'. San Diego Union-Tribune – via NewsBank.
  15. ^Andy Bruno; Steve Chae (May 29, 2001). 'New law on raffles effective soon'. San Jose Mercury News – via NewsBank.
  16. ^Gina Faridniya (August 25, 2006). 'State may OK casino nights Bill to let charities hold games sent to governor'. Ventura County Star – via NewsBank.
  17. ^Vic Pollard (January 1, 2007). 'State's new laws go into effect'. The Bakersfield Californian – via NewsBank.
  18. ^'Horse Racing and California Fairs'(PDF). California Authority of Racing Fairs. Retrieved 2016-07-20.
  19. ^'Advance Deposit Wagering'. California Horse Racing Board. Retrieved 2019-03-02.
  20. ^ ab'2019 Racing Schedule'. California Horse Racing Board. Retrieved 2019-03-02.
  21. ^'Simulcast Facilities'. California Horse Racing Board. Retrieved 2019-03-02.
  22. ^'CHRB Mission Statement'. California Horse Racing Board. Retrieved 2016-07-23.
  23. ^48th Annual Report of the California Horse Racing Board(PDF) (Report). California Horse Racing Board. 2018. p. 45. Retrieved 2019-03-02.
  24. ^Hank Wesch (July 29, 1987). 'Track survived hard times to flourish'. San Diego Union-Tribune – via NewsBank.
  25. ^Jeff Meyers (October 2, 1991). 'Horse latitude: Ventura Fairgrounds provides alternative to track betting'. Los Angeles Times. Retrieved 2019-03-02.
  26. ^Jack Shinar (December 15, 2010). 'California sports bar to open mini-satellite'. The Blood-Horse. Retrieved 2019-03-02.
  27. ^Don Thompson (August 26, 2002). 'Remote wagering slow but steady in California'. Las Vegas Sun. Retrieved 2019-03-02.
  28. ^'Ratified Tribal-State Gaming Compacts (New and Amended)'. California Gambling Control Commission. Retrieved 2019-03-02.
  29. ^David Olson (April 27, 2015). 'Tribal casinos: From poverty to payday'. The Press-Enterprise. Riverside, CA. Retrieved 2019-03-02.
  30. ^'Play Overview'. California State Lottery. Retrieved 2016-07-21.
  31. ^Robert Crabbe (September 28, 1986). 'California lottery meets with success, ambivalence'. UPI. Retrieved 2019-03-02.
Retrieved from 'https://en.wikipedia.org/w/index.php?title=Gambling_in_California&oldid=987250234'