Yes, some forms of gambling are legal in California. The California Constitution bans some types of gambling, but provides a list of exemptions. These include
- casinos on Indian land,
- the state lottery, and
- betting on horse races.
California Penal Code 330 PC only criminalizes certain specific games, as well as banking games and percentage games. Social, not-for-profit poker games are legal.
When is gambling legal in California?
In California, the following types of gambling are legal:
- the California State Lottery,
- casino gambling on property owned by federally-recognized Indian tribes,
- games in licensed card rooms,
- charitable bingo games and raffles, and
- betting on horse races.
Some of these forms of legal gambling are explicitly allowed in the California Constitution.1
Additionally, some other games are not prohibited by California’s criminal laws.
Regardless, the minimum gambling age in California is 18.
The California Lottery
The California State Lottery is explicitly authorized by the state constitution.2 It was created in 1984 with the passage of Proposition 37.3 This law established the California State Lottery Commission. This Commission can operate lottery games.
Lottery games have been defined as having 3 elements:
- a prize,
- that prize is distributed by chance, and
- opportunities to win that prize are paid for with consideration.4
Many lottery tickets come in the form of scratch-off cards.
The Lottery includes numerous games that are specific to California, like:
- Hot Spot,
- SuperLotto Plus,
- Daily 3, and
- Daily 4.
It also includes some games that are available across the United States. Some of these are:
- Powerball, and
- Mega Millions.
Tribal casinos
The federal Indian Gaming Regulatory Act5 lets Indian tribes that are recognized by the federal government-run casinos on their tribal land. There are 63 active licenses for tribal casinos in California. These Indian casinos are run according to the compacts that are negotiated between the state and the Native American tribe.
While the legal age to gamble in California is 18, many casinos refuse entry to anyone under the age of 21 because they serve alcohol on site.
Card rooms
A card room is a business that lets patrons gamble, mainly through card games. They tend not to offer other common types of gambling and games of chance, like slot machines.
In California, card rooms – often called card clubs – have to be licensed. There are over 60 licensed card rooms in the state. The California Gambling Control Commission, which was modeled on its Nevada counterpart, is responsible for licensing and regulating card rooms.
Card rooms are legal because players in them do not play against the bank, and the establishment does not take a percentage of the bets made. Instead, they generally derive income by:
- charging individual players at regular intervals, often every 30 minutes, or
- collecting a portion of the pot from each hand, known as a “rake.”
Card rooms may offer non-banked versions of popular gambling games, like pai gow.
Charitable gambling
Certain non-profit organizations can raise money through charitable gambling events. Each event can last a maximum of 5 hours, and can only be run once a year. While participants are not allowed to win cash prizes, they can win prizes that have been donated for the fundraiser.6
This exception to illegal gambling comes from a 1976 constitutional amendment.
Horse races
Betting on horse races is legal in the state of California at licensed racetracks and off-track betting establishments.7 This type of gambling has to be done as a form of pari-mutuel wagering.8
Pari-mutuel wagering is a system where all bets are put into a pool. Taxes and the establishment’s cut are taken from the pool. The remaining pool is shared among all of the winning wagers.
Games not prohibited by criminal laws
California Penal Code 330 PC lays out 2 types of prohibited gambling games. These are:
- banking games, and
- percentage games.9
Banking games are those where there is a “house” or a “bank” that participates in the game. In the course of participating, the bank collects money from the losers and redistributes it among the winners.10
Percentage games are those where the “house” collects money based on the amount won or bets made.11
Games that are not percentage or banking games are not prohibited by California’s criminal laws.
So long as they are not being conducted for profit, poker games are not a prohibited gambling game.
What games violate California gambling law?
The California Penal Code outlaws certain gambling games by name. It also forbids games that fall under the definition of percentage or banking games. Sports betting, other than on horse races, is illegal. So is non-sports betting.
The gambling games that the Penal Code outlaws by name are:
- faro,
- monte,
- roulette,
- lansquenet,
- rouge et noire,
- rondo,
- tan,
- fan-tan,
- seven-and-a-half (7 1/2)
- twenty-one (21), and
- hokey-pokey.12
It also forbids:
- percentage games, and
- banking games.13
What are the laws for online gambling?
Online gambling, including games that use real money, is not yet regulated by state law in California. People in California can play gambling games online, even if the game would be prohibited in California. This includes games like:
- online slot machines and other online casino games,
- online sports betting,
- Blackjack, or
- 21.
They can also get online to play potentially legal games, like online poker.
What about sports betting and daily fantasy sports?
Sports betting, when not done for horse races, is illegal. However, online daily fantasy sports, including sportsbooks like DraftKings and FanDuel, are unregulated in the Golden State. This means that Californians can play, online.
Several pending ballot initiatives can change this in 2022. These initiatives aim to legalize California sports betting without going through the legislature. They differ in where gamblers could go to do that betting.
What are the penalties for illegal gambling?
Illegal gambling in California is a misdemeanor. Convictions can carry up to:
- $1,000 in fines, and
- 6 months in county jail.14
Judges can impose misdemeanor (summary) probation in lieu of jail time.
Legal References:
- California Constitution Art. IV. Section 19.
- California Constitution Art. IV. Section 19(d).
- California Government Code 8880.24 GC et seq., the California State Lottery Act of 1984.
- Trinkle v. California State Lottery, 105 Cal.App.4th 1401 (2003).
- 25 USC 2701 et seq.
- California Business and Professions Code 19986 BPC.
- California Business and Professions Code 19590 BPC.
- California Business and Professions Code 19593 BPC
- Sullivan v. Fox, 189 Cal.App.3d 673 (1987).
- People v. Ambrose, 122 Cal.App.2d Supp. 966 (1953).
- Sullivan v. Fox, 189 Cal.App.3d 673 (1987).
- California Penal Code 330 PC.
- Same.
- Same.
