Are things as free and easy as portrayed?
While California is often perceived as a laid-back, free, and easy place where anything goes, the on-the-ground reality is different, as anyone who lives here knows. This is particularly true when it comes to gambling, and the laws are complex. So, we are going to do a bit of unpicking to work out what you can gamble on legally and what you cannot. While most forms of gambling are legal, some are not. The rule of thumb seems to be that in-person interactions are fine, but online interactions are not. However, is that strictly true, and what about social and sweepstakes casinos?
It’s complicated
The whole of the US has a complex relationship with gambling, so California is not alone in having rules and regulations that are not very straightforward or subject to review. While the pro-gambling lobbyists would like to see a relaxation in regulation, what matters is what is written into law. In California, all gaming laws are covered by the California Penal Code (PC) 330. Essentially, what is ok are card rooms, tribal casinos, horse racing (under parimutuel rules), some forms of charitable gaming, and lotteries. The most popular form of gambling in California is poker, and this is legal for real money in card rooms. Lawful betting activity in the state has to receive written approval from the Division of Gambling Control, as stipulated by the state’s Attorney General.
However, what is not allowed is commercial casino gaming and most forms of sports betting (outside of horse racing). This does not mean that Californians do not indulge in these activities, but to do so for real money, they either have to go out of state or play at offshore sites. As offshore casinos are not regulated, it is generally advised to avoid them. Not only is it illegal to play at them, but if anything goes wrong, there is no fallback position and no one to help the hapless gambler.
Legal Grey Areas
As we said, the laws are complex. As is often the case, there are grey areas. Few things are ever simply black and white – in part, that is because people like to find ways to circumvent prohibitive laws, and also because some things simply evolve.
Social Casinos
Fortunately, for Californians, one such area is social gambling. As these online casinos do not involve gambling for real money, they are not illegal in the state. Players use virtual currency to play online casino games. They offer all the thrills of their real-money counterparts, but the win is for the glory rather than any cash rewards. Finding a social casino is relatively easy, but finding an excellent one takes some skill. Fortunately, experts have curated lists of those to play at and those to avoid. iGamers can find many familiar titles, as well as some that are exclusive to social casinos. These platforms give away large quantities of bonus virtual coins and are great fun to play at.
Fantasy sports
Fantasy sports are popular in the state, but in 2023, Senator Scott Wilk requested clarification from the Attorney General regarding a decision on their legality.
A brief history of Californian gambling
So why are things so complex in California? Let’s take a look to see how we got to where we currently are. The history of gambling goes back to the 19th-century gold rush, when prospectors arrived and were looking for entertainment and ways to spend their newfound wealth. It has been suggested that some found being good at poker was more profitable than panning, and in some instances, this may well have been the case. Not everyone returned after the gold rush with their wealth intact.
In 1872, faro, roulette, rondo, fan-tan, and other casino games were banned under the California Penal Code. However, poker was not banned. By the 1980s, tribal casinos had emerged, and there are now 76 land-based tribal casinos and five mini-ones. They are at the heart of California’s legal gambling scene. Card rooms remain popular, and although a moratorium on new ones was imposed after 1995, there are still over 60 operating across the state – poker is the game of choice in these establishments.
When the Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, many assumed that California would follow the path taken by numerous other states and legalize online sports betting and possibly online casino gambling. However, despite the introduction of Bill ACA-16 and SCA-16, California failed to legalize online betting and gaming. This is in large part due to resistance from the tribal casinos, which are a very powerful bloc and an important economic sector in the state.
Recent attempts to overturn earlier decisions have shown that Californians are not in favor of changing the status quo. Despite enormous sums being put behind the pro-commercial online gambling lobby, sports betting (even on your favorite local team) and online gambling remain offside in the state. This may, of course, change in the future. Nothing is static, but the lobbyists will have to do an enormous amount of work if they are going to get any bills in favor of online gambling through the authorities.
Following the defeats in statewide referenda for two alternative proposals, anyone seeking to introduce legal online gambling will need to develop an alternative plan. Not even including the tribal stakeholders had sufficient sway, and for now, all bets are off.
Inconsistency is the frustration
As you can see, the legal gambling landscape is complex and ill-defined. This can lead to considerable confusion. Currently, land-based casinos are only allowed in tribal areas, and sports betting is illegal. Well, that is apart from horse racing, which, for some reason, does not count as sports betting. However, even horse racing bets can only take place under parimutuel rules. Card rooms are legal and popular, but online poker is not. Pro-gambling lobbyists rail against the inconsistency, particularly in such an otherwise progressive state. Other states in the US, such as New Jersey and Connecticut, have established frameworks that are easier to navigate. In Canada, Ontario took the bull by the horns and legalized all forms of gambling for those over 21. Many believe that this approach provides the best protection for citizens and yields the greatest revenues for state coffers. However, dreams of a second California gold rush are yet to materialize despite the state being home to so much of the tech behind everything that is online.