Until recently, California was governed by the Professional and Amateur Sports Protection Act (PASPA) which was signed into federal law in 1992. PASPA banned states from regulating and taxing sports betting, effectively making it illegal in all but four states – Nevada, Oregon, Montana, and Delaware.

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California has many options for those who are interested in legal gambling, although sports gambling is not currently available in the state. While the US Supreme Court lifted restrictions on sports gambling in 2018 and many states followed with legalization, California has not yet followed suit.

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Thus, the State of California does not have the legal authority to enforce its gambling laws on Indian land. The regulation of Indian gambling at the federal level is the responsibility of the National Indian Gaming Commission, which has the power to assess civil penalties for violations of the IGRA.

Still, the state has a long history of card rooms, horse racing, a state lottery, and tribal casinos. Further, there was a push to place a constitutional amendment on the ballot in November of 2019 to legalize sports betting.

In the past few years, California has seen legislation proposing the legalization of online poker. California may be in the opening act of expanding gambling options in the state.

Does California Have State-Regulated Online Gambling?

California does not currently have state-regulated online gambling. While there have been attempts to adopt legislation in this area, so far, the state has not enacted laws regarding online gambling.

Legal Progress On Poker Gambling In California

In 2008, Assembly Member Levine introduced AB 2026 in the California State Assembly to perform a study on allowing intrastate poker. The study focused on regulatory oversight of online gambling, technology, economic benefits to the state, and the types of games that might be allowed, among other matters. Ultimately, the Assembly failed to pass AB 2026, and the study did not move forward.

Another bill was introduced in 2016 to legalize online poker. Assembly Members Gray and Jones-Sawyer introduced AB 2863, the Internet Poker Consumer Protection Act of 2016, to allow intrastate poker. Licensed operators would have been required by the Act to deposit $12.5 million into the California general fund while paying 10 percent of their revenues to the state. The Act also included a concession of $57 million to be paid into a fund for the benefit of California horse racing tracks. Unfortunately, the bill never went up for a vote.

Legal Progress On Sports Betting In California

There may be movement on sports betting in California in 2020, including online options. California legislators held a general informational hearing in January of 2020 in Sacramento on sports betting with representatives from online sportsbooks in attendance.

In addition, several of California’s Indian tribes filed a petition to place a measure for sports betting on the November 2020 ballot. That petition would limit sports betting to physical locations at tribal casinos and would not allow any type of online betting. The petition appeared to be well on the way to gathering enough signatures to appear on the ballot.

However, with the COVID-19 pandemic interrupting the collection of signatures, that began to seem uncertain. In June 2020, state legislators pressed pause on the bill. It will not be presented to the voters until November 2022.

Are Sweepstakes Allowed Under California Gambling Law?

Sweepstakes are legal under California law, although sweepstakes entities must be careful to meet the legal requirements for this type of contest. If the rules are not followed correctly, the contest could easily be construed as a lottery, which is illegal. The legal elements of a lottery are:

Giving a prize to a winner.
The contest is determined by chance.
A person pays “consideration” to participate in the contest.

Courts construe “consideration” broadly. It is more than just paying a fee to enter the contest. Consideration can include requirements such as opening a bank account to participate or even filling out a lengthy survey.

The main difference between an illegal lottery and sweepstakes is the lack of consideration for entering the sweepstakes. In fact, any solicitation materials for a sweepstakes entry in California must prominently display a “clear and conspicuous statement” that there is no purchase or payment for entering the contest. As long as online sweepstakes sites follow the relevant regulations, California does allow them to operate.

See our guides to Sweepstakes Casinos and Sweepstakes Poker in California.

How Do Tribal Casinos Work In California?

Thanks to a significant 1987 US Supreme Court ruling originating out of California, tribes may now operate tribal casinos on reservation lands throughout the country. The Supreme Court case overruled any restrictions on gaming on Indian reservations. In that case, two tribes (the Cabazon and Morongo Bands) were operating small bingo parlors and card rooms on reservation lands near Palm Springs. The State of California sought to close down the operations, stating they violated state regulations.

In its decision, the Supreme Court relied on its prior rulings from the 1830s that Indian tribes are independent political communities, thereby granting the tribes sovereign immunity. The Court held that since California did not prohibit gambling on a criminal basis, the state could not regulate gaming on reservation lands.

In response to that ruling, California voters approved Proposition 1A in 2000. Proposition 1A allows the governor to negotiate compacts with tribes on reservations in the state to offer various types of gambling. The State and tribes have since entered into a number of different compacts to permit gaming. As a result, there are now many tribal casinos operating in California.

See our Guide To Tribal Casinos In California.

Do Tribes Offer Online Gambling?

At this time, tribes in California do not offer online gambling. As noted previously, attempts to legalize online poker have thus far failed. Tribes were pushing for a ballot measure for the November 2020 election to allow sports gambling, but only in physical tribal casinos. It seems this measure will not be put to voters until November 2022.

What Games Can Tribes Offer At Casinos?

Under the Indian Gaming Regulatory Act (IGRA) passed by Congress in 1988, tribal casinos can offer a number of different games defined by various classes. Class I games include games that are for minimal value and traditional forms of Indian gaming. They are only regulated by the tribes.

Class II games include bingo, lotto, and poker. In these games, the participants are competing against each other and not against the house. Tribes can offer as many of these games as they want. Class II games are not subject to regulation by the states.

The IGRA also allows tribes to offer Class III games. These include all other types of gambling like slot machines, electronic games of chance, and many banked card games like blackjack. To offer these games, the games must be legal under the state laws, and the tribe must negotiate a compact with the state to permit the games.

California negotiated some compacts with tribes, but many prominent Las Vegas-style games are missing. The State of California has previously held that craps, roulette, and dice-games based on chance are prohibited under the state constitution and laws. Thus, you will not see these types of games in California casinos. Many tribal casinos have come up with some interesting workarounds to offer substantially similar games.

Are All Casinos In California Tribal Casinos?

All legally defined casinos in California are tribal casinos. Some card rooms may contain the word “casino” in their names. Legally, they are not casinos but instead

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