Is Gambling Legal in California? A Comprehensive Guide to California Gambling Laws

By Jonas Gritėnas Updated on August 23, 2024

Is Gambling Legal in California?

Most forms of gambling are legal in California, while others aren’t.

Gambling regulations in California, like in many US states, are complex, and in California’s case, all gaming laws are expressed in the California Penal Code (PC) 330.

Lawful forms of gambling include card rooms, tribal casinos, lottery, horse racing (parimutuel wagering), and some forms of charitable gaming.

One of the most popular forms of gambling in the state is poker, which is permitted in card rooms.

Illegal forms of gambling include commercial, casino-style gaming (slot machines and table games) and most forms of sports betting.

Lawful betting activity in California, such as card rooms, must be approved in writing by the Division of Gambling Control, as stipulated by Attorney General Rob Bonta.

The History of Gambling Laws in California

The history of gambling in California can be traced back to the gold rush in the middle of the 19th century. Prospectors arrived in California from across the country, and with their new-found wealth, gambling increased across the state.

In 1872, the California Penal Code prohibited numerous casino games by name, including faro, roulette, fan-tan, and rondo, among others. Interestingly, it did not mention poker, which was highly popular.

By the 1980s, tribal casinos had emerged in California. The Cabazon Band of Mission Indians in Riverside County, California, ran a high-stakes bingo game in the early eighties, and many other tribal groups followed suit. Today, there are 76 tribal casinos and five mini-casinos in California, forming the state’s legal gambling backbone.

A moratorium on new cardrooms was announced in 1995, but 66 cardrooms still operate in different parts of California today.

Types of Legal Gambling in California

Today, gambling in California is lawfully permitted in the following areas:

State lottery

The California State Lottery runs lottery games in the state. The lottery was legalized following a referendum in 1984 and has been a popular gambling activity ever since. California lottery players can buy scratchcards and enter the Powerball and Mega Millions draws.

Horse racing (Parimutuel betting)

Parimutuel (or pooled) bets on horse races are the only sports wagers permitted in California. This also includes satellite wagering facilities. Parimutuel betting is where you buy a ticket on the horse you wish to back rather than placing a real-money wager with fixed odds. Winnings relate to how many people hold a winning horse’s ticket.

Five tracks hold annual extended racing meets: Santa Anita, Cal Expo, Del Mar, Golden Gate Fields, and Los Alamitos. A 1933 referendum legalized horse racing betting in California, and it remains one of the mainstays of the gambling culture in the state today.

Card rooms

Card rooms are allowed to operate in California, provided they offer games where players compete against each other rather than against the house. The most common game played in card rooms is poker.

Card room regulations were established in California in 1984, and by 1987, the California Gambling Control Commission was launched to regulate activities and games within card rooms.

Native American casinos

Under the Indian Gaming Regulatory Act, federally-recognized tribes in California can operate casinos. Currently, 63 tribal casinos in California, operated by 61 tribes, generate more than $8 billion in revenue and offer slot machines and table games.

Charitable gambling (bingo and raffles)

Legally registered non-profits in California can operate bingo games, raffles, and poker games. However, they can only run one poker night annually.

Online Gambling in California

Online gambling is illegal in California. When the Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, it paved the way for the legalization of online gambling throughout the United States.

Bill ACA-16 and SCA-6 followed but ultimately failed to legalize California sports betting and online casinos. Much of the resistance came from the tribal casinos, which are extremely powerful in the state.

Recent demonstrations indicated that the people of California aren’t particularly in favor of legalizing sports betting or online casino gameplay in the state. Though this may change in the future, lobbyists have a lot of work to do if they want to pass bills through the House to permit legal online gambling in California.

Other Illegal Gambling Activities in California

The following types of gambling are prohibited in California:

• Sports betting: While some politicians have tried to legalize sports betting, sports wagers remain illegal in California. As mentioned above, the only type of legal sports betting is parimutuel betting at licensed racetracks.
• Unlicensed poker games: Though poker and some other card games are legal within card rooms, unlicensed games are illegal. A card room must receive written permission from the Division of Gambling Control to offer real-money poker.
• Private lotteries: For-profit companies offering private lotteries and related gambling games are illegal. If you want to participate in the lottery in California, you must play approved games by the California State Lottery.

Legal Grey Areas

Some online gambling activities aren’t easy to pigeonhole as legal or illegal, falling into a grey area. Some of these include:

• Social gambling: Playing at social casinos and using virtual currency to play online casino games is not illegal in California. Therefore, you can play at sweepstakes casinos without breaking the law.
• Fantasy sports: Unlicensed fantasy sports are prevalent in California, but in 2023, Senator Scott Wilk raised the issue with the attorney general and asked for a more precise classification. At the time of writing, a decision has yet to be made regarding the legality of fantasy team sports in California, placing it very much in a grey area.

Future of Gambling in California

It’s fair to say that California’s legal gambling landscape remains ill-defined. For instance, land-based casinos are only permitted in tribal areas, and sports betting, other than parimutuel horse racing, remains illegal. Equally, card rooms offering poker and a few different card games operate, but online poker is banned.

The legal framework surrounding gambling in California is inconsistent, which many people wish to change. While other states in the US, such as New Jersey and Connecticut, have made positive strides in legalizing sports betting and online casino gaming, California remains at a crossroads.

Though a couple of bills have been proposed since 2019, nothing concrete is in the pipeline at the time of writing. Whether lawmakers take the necessary steps to legalize sports betting and online casino gaming remains to be seen.

Comparing California Gambling Laws to Other States

California isn’t the only state in the US that hasn’t made up its mind about legal gambling. Here’s how the landscape looks in Arizona, Nevada, and Oregon:

• Arizona: In Arizona, all forms of gambling are illegal unless specific statutes state otherwise. One exception is the Indian Gaming Regulatory Act, which permits over 20 tribal casinos to operate in the state. Like in California, some forms of horse racing betting are legal in Arizona. In September 2021, Arizona passed a bill to legalize sports betting online.
• Nevada: The home of Las Vegas, Nevada, has a fully regulated legal gambling industry, with over 440 legal land-based casinos. Online gambling is also partially legal in Nevada, with sports betting and some online poker games permitted.
• Oregon: Like Nevada, Oregon is accommodating of legal gambling. In the state, you’re permitted to gamble in person at tribal casinos, play bingo, place sports bets, and participate in social gambling.

Why you can trust Fortis Media with gambling-related marketing

Navigating the world of legal gambling is tricky, given the nuances in laws on a state-by-state basis. Moreover, California has one of the most complicated gambling laws in the whole of the United States, so you need to be careful when producing gambling-related content.

At Fortis Media, our marketing expertise can be extremely valuable to your casino gaming or sports betting business. We understand the nuances of legal gambling and understand how to take your business to the next level. We can create bespoke content that considers the legality of gambling in California or any other state in the US.

Our SEO specialization means we can drive traffic to your website and help your business grow and thrive online. We can also curate a digital marketing solution for your brand, allowing you to connect with your clients in numerous ways.

As the legal framework surrounding online gambling in California and other states is fluid, we can help you navigate the tricky waters and produce legally sound content highly relevant to your respective audience.

Key Takeaways

Most forms of gambling are illegal in California, including online sports betting and casino gaming. Moreover, gambling at land-based venues is only permitted at tribal casinos, while the only form of legal sports betting is parimutuel bets on horse races.

Other legal forms of betting include the California State Lottery and charitable games. At the same time, card rooms provide poker, and a few legal card games allow participants to play against each other, not the house.

The future of legal gambling in California is unclear, as several recent bills have failed to get through the House. We’ll be sure to update you if any legislation passes in the near future.