Gambling is a popular pastime for many Americans, but not all types of gambling are legal in every state. In California, some forms of gambling are permitted, while others are strictly prohibited. Understanding what’s legal and what’s not is important for California residents who enjoy placing wagers.
Overview of Gambling Laws in California
Gambling laws in California allow some forms of regulated gambling, such as:
- California State Lottery
- Horse racing
- Cardrooms
- Tribal casinos
However, other types of gambling are explicitly banned. California’s state constitution prohibits:
- Casino-style gambling
- Slot machines
- Roulette
- Dice games
- Most sports betting
In addition, local city and county ordinances may further restrict certain gambling activities. So while some forms of gambling are allowed under state law, they could still be illegal at the local level.
Is online gambling legal in California?
No, online gambling is illegal in California. This includes:
- Online poker
- Online casinos
- Online sports betting
- Daily fantasy sports
- Other internet-based wagering
California has not passed any legislation to legalize internet gambling. Furthermore, in 2006 federal law prohibited banks and financial institutions from processing payments related to online gambling. As a result, betting real money on internet-based games from California would violate both state and federal law.
Are slot machines legal in California?
Slot machines are banned in California outside of tribal casinos. The California State Constitution explicitly prohibits slot machines and roulette games. As a result, it is illegal to own, rent, or possess slot machines in California unless you are a federally-recognized Native American tribe.
Slot machines and video poker devices are only legal on tribal lands. Many Native American tribes in California operate casinos on their reservations with slot machines, poker machines, and other forms of Class III gaming. However, these casinos are limited to tribal property and are not permitted elsewhere in California.
Is sports betting legal in California?
Sports betting is very limited in California. The only legal sports betting permitted is on horse races at racetracks and satellite wagering facilities. Sports books are not allowed to operate in California.
In November 2022, California voters will decide on Proposition 27, which would legalize online and mobile sports betting outside of tribal lands. If approved, licensed gaming companies could offer real-money sports betting apps and websites in California. However, in-person sports books would still be prohibited under the initiative.
Another proposal, Proposition 26, would allow in-person sports betting at tribal casinos and horse race tracks. However, as of October 2022, sports wagers can only be made on live horse races in California.
Can you gamble on card games in California?
Yes, card games like poker and blackjack are legal forms of gambling in California. However, they are strictly regulated.
Cardrooms can offer card games but are not allowed to have slot machines or house-banked table games like roulette or craps. California cardrooms make their revenue by collecting fees from each pot or by charging players by the hour to play.
There are limits on the bets and fees cardrooms can charge players. For example, the maximum fee for poker and Pai Gow is $4 per half hour. In addition, games must be played between players only – the house cannot participate.
Is betting on horse races allowed in California?
Yes, parimutuel wagering on horse races is legal in California. The state has several thoroughbred and harness racing tracks, including:
- Santa Anita Park
- Golden Gate Fields
- Del Mar
- Los Alamitos
In addition, California has legal off-track betting facilities where race fans can wager on simulcast races. The California Horse Racing Board regulates all horse race betting in the state.
Are raffles and charity gambling allowed in California?
Yes, with some restrictions. Non-profit organizations in California can hold raffles and use bingo for fundraising purposes. Charities must register with the California Attorney General’s Registry of Charitable Trusts and follow rules on how raffles are conducted and prizes awarded.
Organizations may also hold poker nights and casino game nights as charity fundraisers, subject to municipal and county ordinances. Various licenses are required depending on the nature of the event and number of people participating.
Is social gambling permitted in California?
In California, social gambling is when players compete in games of skill or chance with no house involvement. This includes activities like:
- Friendly bets between individuals
- Home poker games
- Office sports pools
- Other private, social bets
Social gambling is generally legal in California as long as organizers, employees, and facilities do not earn revenue or fees. However, local ordinances may further restrict social gambling in some areas.
What are the penalties for illegal gambling in California?
Engaging in prohibited forms of gambling in California can lead to criminal penalties. Possible consequences include:
- Misdemeanor charges
- Fines up to $1,000
- Up to 1 year in county jail
- Seizure of gambling equipment
Exact penalties depend on the nature of the illegal activity. For example, operating an unlicensed internet sports betting business would face harsher punishment compared to hosting a social home poker game for money. Law enforcement focuses much of their anti-gambling efforts on shutting down illegal casinos, slot machine operations, and bookmaking rings.
Key Takeaways
Here are some important points about illegal gambling in California:
- Slot machines, roulette, craps, and casino-style card games are prohibited outside of tribal casinos.
- Sports betting is very limited and only allowed on horse racing.
- Online gambling is illegal in California.
- Cardrooms can offer legal card games if they follow strict regulations.
- Social gambling is permitted as long as the house does not profit.
- Charities can conduct regulated gambling events like raffles and poker tournaments for fundraising.
- Penalties for running illegal gambling operations can include fines, jail time, and asset seizure.
Gambling Revenue in California
Despite bans on many gaming activities, California still generates significant gambling revenue from lawful forms of betting. Here is a breakdown of gambling revenue sources in California and how much revenue was produced in 2021:
| Gambling Type | 2021 Revenue |
|---|---|
| Tribal Casinos | $9.17 billion |
| California Lottery | $8.09 billion |
| Cardrooms | $970 million |
| Horse Racing | $700 million |
As shown above, tribal casinos generate the most gambling revenue, followed by the California State Lottery. Cardrooms and race tracks also contribute significant tax income for local and state governments.
Recent Gambling Expansion Efforts
In recent years, there have been growing efforts to expand gambling in California beyond tribal casinos, horse racing, and the lottery. Key initiatives include:
- Sports betting – Propositions 26 and 27 on the November 2022 ballot would legalize sports betting either online, in-person, or both.
- Cardroom expansion – Some cardrooms are pushing to allow more table games besides poker and Pai Gow.
- Mini-casinos – Proposals have surfaced to allow smaller, non-tribal casinos in areas like the Central Valley.
- Online poker – Legislators have introduced bills to legalize online poker games in California.
However, expanded gambling faces major opposition from tribal casino interests and gambling addiction advocates. Lawmakers also point out the risks of cannibalizing existing gambling revenue sources.
Public Opinion of Gambling in California
According to statewide surveys and polls, most California residents support regulated gambling, while opposing illegal and unregulated forms of betting.
- A 2019 Public Policy Institute of California poll found that 68% of adults support legal gambling as a way to fund government services and programs.
- A 2021 survey commissioned by gambling opponent groups found that 57% of likely voters would oppose new Las Vegas-style casinos in their communities.
- In a 2022 UC Berkeley poll, 71% of voters favored allowing sports betting either online, in-person, or both in California.
- A 2022 survey by the California Council on Problem Gambling showed that 92% disapproved of illegal youth gambling.
Overall, research indicates Californians have fairly nuanced views on gambling – open to expansion of lawful regulated gambling but against unchecked proliferation of betting activities. Concerns about problem gambling and protecting vulnerable groups remain high priorities across all polls.
Indian Gaming Regulatory Act
Gambling regulation on tribal lands in California and the U.S. is governed by the federal Indian Gaming Regulatory Act (IGRA) passed in 1988. Key aspects of IGRA include:
- Federally recognized tribes can operate casinos and other gaming on reservations.
- Tribal gaming is divided into 3 classes. Class III includes casino games, slot machines, and sports betting.
- To offer Class III gaming, tribes must negotiate a compact with the state.
- Tribal gaming revenues must be used for government and general welfare purposes.
- States cannot tax tribal gaming revenue.
In California, over 60 Native American tribes have negotiated compacts with the state government to permit Class III gaming. As a result, tribal casinos have exclusive rights to Las Vegas-style gambling that is otherwise prohibited in California.
Gambling Disorder in California
While most residents gamble responsibly, gambling addiction remains a serious public health issue. According to the California Council on Problem Gambling:
- Around 1 million California adults are estimated to have a gambling disorder.
- 2.7% of adults are considered to be problem gamblers in California based on clinical screens.
- Gambling addiction is associated with higher rates of bankruptcy, divorce, and suicide attempts.
- Problem gambling results in estimated social costs of $1 billion per year in California.
Advocates urge a greater state focus on gambling disorder treatment and prevention. Currently, California does not dedicate any state funds to direct services for gambling addiction.
Conclusion
Gambling laws are complex in California, with some forms of gambling like tribal casinos, lottery, and parimutuel horse race betting permitted, while most other types are prohibited. Exceptions exist for regulated cardrooms, licensed charity events, and private social gambling.
Recent ballot initiatives and legislative proposals could soon expand sports betting options for Californians. However, casino-style gaming remains unlikely outside of tribal lands. Understanding what’s legally permitted and what’s not is key to avoiding any criminal consequences when placing bets in California.