California

California Gambling Overview

Known as ‘The Golden State,’ California borders the Pacific Ocean on the west coast.

Article IV of the California Constitution makes most gambling forms illegal. However, some exceptions which permit gambling exist and are regulated by the state or Native American tribes. These include bingo, horse race wagering, pari-mutuels, lotteries, card rooms, and tribal casinos. California does not have any online gaming legislation, and non-sports betting and mobile gambling are prohibited.

Legal forms of gambling mainly fall under legislation concerning the Gambling Control Act (GCA) (California Business and Professions Code §§ 19800 et seq. (West)).

California has no state law that explicitly defines gambling. Still, case law has determined the three elements necessary to constitute gambling. These include a prize, awarded through an event of chance in exchange for a consideration.

Card Rooms

No explicit laws prohibit poker in California since it’s considered a game where players compete against each other rather than the bank (which would otherwise be illegal). Poker is legally permitted at tribal casinos and card rooms. Not-for-profit poker games are also legally allowed. At present, there are 86 facilities that are licensed to offer card rooms.

Lotteries

Lotteries in California were legalized in 1984 after a state referendum. The California State Lottery runs statewide lotteries (draw games and scratch cards). Participation in interstate lotteries such as Mega Millions games and Powerball is also possible.

Social Gaming

No specific laws exist for social gaming in California. Still, it is legal, provided that there is no prize consideration and is a game of skill. Defining social gaming as a skill game has been challenged in federal courts but shot down each time.

Charity Games

California Penal Code § 326.5(o) defines bingo as a game of chance with prizes. Furthermore, a player must have a tangible card with symbols or numbers. These are marked or covered, corresponding to numbers randomly drawn and announced by a live caller. Aside from bingo, charity raffles and poker are also permitted.

Horse Racing and Pari-Mutuel

Horse race wagering and pari-mutuel wagering are governed by California Horse Racing laws. They are the only legal forms of sports betting, set out in the California Business and Professions Code §§ 19590-603. Pari-mutuel wagering on horses is allowed online, at off-betting facilities and racetracks.

Land-Based Casinos in California

Commercial casinos in California are unlawful, and in recent years no attempts have been made to change this. However, there are presently 66 tribal casinos scattered throughout the state. Regulations, limitations, and terms concerning tribal casinos are set out in compacts between the state of California and individual tribes. Tribes work with the CGCC to develop regulations in line with the tribe–state compacts.

California Gambling History

Non-banked card games, including poker, were considered legal since 1872 by virtue of the fact that they were excluded from mention in the Constitution as prohibited gambling forms.

A voter referendum in 1933 legalized horse race wagering, followed by off-track betting at fairgrounds in 1985, off-track betting elsewhere in 2008, and online race betting in 2002.

In 1984, a voter referendum approved the California State Lottery. A decade later, in 1995, a moratorium on card rooms started that only ended in 2020.

The California Constitution was amended in 1976 to legalize charitable bingo. There were further amendments in 2000 to allow raffles and again in 2007 to enable charity poker.

In 2000, Proposition 1A amended the California constitution to allow tribal casinos to offer slots and card games on Native land.

In 2018, The US Supreme Court struck down The Professional and Amateur Sports Protection Act (1992), allowing individual states to decide whether to legalize sports betting.

The last few years have seen several failed attempts to legalize online poker and other online games. Sen Bill Dodd attempted to introduce legislation in 2020 (Bill ACA 16) to legalize sports betting through a referendum. He was forced to retreat after opposition from California’s tribal casino operators.

Before that, Assembly Bill 2863 was introduced in 2016, which would legalize online poker. It ran into opposition from horse racing and state tribes, both fearing the potential loss of revenue.

California Gambling FAQ

Are Tribal Casinos or Commercial Casinos legal in California?

California only allows tribal casinos in the state.

Are winnings at land-based casinos subject to tax in California?

No, there are no California tax laws. However, all gambling winnings are subject to federal income tax.

Is state lotteries or interstate lotteries legal in California?

Yes, California offers state and interstate lotteries.

Is sports betting legal in California?

No, sports betting is not legal in California.

What gambling forms in California are legal?

California permits charity games, tribal casinos, pari-mutuel & race betting, lotteries, card rooms, and social gambling.