Gambling in California

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Is gambling legal in the state of California? The short answer is yes. Does the law cover USA online casinos?

Again, the answer is yes. We’ll be taking a look at what specifically is legal in the Golden State in terms of gambling (and include any restrictions, if any). While the state is one of the tourist hotbeds in the country, not a lot of people think of gambling when traveling there.

On top of that, it’s also legal to gamble in your home depending on the factors. With that said, we’ll discuss basic information about California’s gambling laws along with how online casinos are able to operate within the state.

When did gambling become legal in California?

The state of California passed a law in 1984 to legalize gambling. Soon after, gambling establishments were soon open. New language was amended to the current law in 2003 when the popularity of online casinos was growing at a fast rate.

How The Law Works

In accordance to California state law, there are games that are labeled “percentage games”. Prime examples of these games are blackjack, craps, slots, roulette, and other casino games. Basically, they are the main games that you’ll see being played at any casino.

However, there seems to be confusion about the law. In accordance to California Penal Code 330, percentage games are forbidden. This includes games where the house may not have to participate in the game itself.

To set the record straight, this part of the law DOES NOT pertain to online gambling. So you can still be able to play the same casino games in an online setting. Plus, there are workarounds of the law pertaining to poker.

In the game of poker, a casino or host taking a rake on pot sizes may be considered illegal. However, some poker hosts will rake games without breaking the law due to some of the loopholes that exist.

Poker games whether they are legal or online are totally fine to play in California. Even though it is legal to play online casino games in California, the real irony lies in the operation part. That’s because in the state, it’s actually illegal to start an online casino or gambling business.

Also, California is very finicky when it comes to tax law. So any earnings you win from online gambling must be taxed. If you pay taxes, then you should have nothing to worry about.

What Exceptions Are There?

Despite the laws changing all the time, the exceptions may be subject to change. For the moment, the gambling laws in California have exceptions. These include the following:

Casinos allowed with restrictions: Casinos in the state of California are prohibited. However, the only exception would be if the casino operated on an Indian reservation.

Horse race betting: Horse and harness racing on-track is permitted. However, the state of California restricts is to pari-mutuel betting. Off-track betting is illegal in the state.

State lottery: These include but are not limited to scratch tickets and electronic gaming lotto tickets like Mega Millions, Powerball, etc.

What is considered illegal?

Now that we have pointed out some of the exceptions, let’s take a look at what is prohibited from the state’s gambling laws. As mentioned before, off-track betting, percentage games, and casinos not located on Indian reservations are prohibited. Here are some other gambling-related activities that are prohibited:

Dice and card games: Card games (I.e – “razzle-dazzle”) and dice games are prohibited. It is also illegal to possess dice that has more than six faces. In other words, a 20 sided die that you would find in a Dungeons and Dragons game can’t be used for gambling purposes. 

Draw poker: Draw poker is best known as five-card poker. The law states that it is banned in counties that have a population of 4 million people or more.

Other games prohibited: The following games are considered illegal: roulette, fan-tan, tan, rondo, rouge et noire, Hokey-pokey, Seven-and-a-half, Monte, and Faro.

FAQ

Is online gambling regulated in the state of California?

Unlike some states where they regulate and license online casinos, California does not regulate them. Therefore, online casino owners located outside of the state won’t need any kind of license from the state government in order to make online casinos available to California residents.

Is sports betting legal in the state of California?

Yes and no. To cover the “yes” aspect, it is legal to bet on sports since most of the betting sites are located outside of the state. However, physical sports gambling or booking is prohibited.

Is DraftKings Legal in California?

This is where things get really confusing. Daily fantasy sports is not considered legal in the state. DraftKings is a daily fantasy sports or DFS operator. However, they will accept players who reside in California. DraftKings and FanDuel have stated that their business practices do not constitute illegal gambling, but consider it more of a skill game.

How many Indian casinos are in California?

As of 2020, there are over fifty Indian casinos in operation. Out of the 110 Indian tribes in the state, over 60 own tribal casinos. These also include nearly a dozen of casino resorts and three mini-casinos.

Final Thoughts

Now that you know about gambling laws in California, it’s important to know that online gambling is legal to an extent. However, land-based gambling appears to be very restricted. Regardless, you can still be able to gamble and win money.

The important part though is to play responsibly and keep it fun. One of the strange things is despite being able to use online gambling platforms like casinos, it’s illegal to run one within the state limits.

The state’s law may appear to be complex, but it’s good to do your due diligence if you have any concerns pertaining to the legal aspect of gambling. Also, you might want to take a look at some of the local laws as well. For example, Los Angeles may have draw poker banned since it’s a city of over 4 million people.