California Gambling Regulation

Legal Status of Gambling in California

Under California Penal Code 330 PC, participating in or offering gambling activities deemed illegal subjects individuals to certain penalties. Individuals who engage in such activities may face imprisonment of up to six months. According to the same legislation, illegal gambling includes games such as Fan-tan, Faro, Hokey-pokey, Lansquenet, Monte, Roulette, Rouge et Noire, Rondo, Seven-and-a-half, Tan, and any dice or card games that award money as a prize.

Under the same section of the Penal Code, those found guilty of a misdemeanor must pay a fine of at least $100 but not more than $1,000, serve up to six months in jail, or face both penalties.

The primary law governing gambling in the state of California is the Gambling Control Act (GCA). This legislation sets the licensing terms for entities involved in California’s gaming sector. The GCA also establishes the legal framework for every cardroom, tribal casino, and bingo hall within the state.

The GCA details how the law should be enforced and outlines potential disciplinary actions used to regulate gambling in California. The same legislation imposes restrictions on specific transactions and establishes the California Gambling Control Commission, the state’s licensing and regulatory body.

Under the Indian Gaming Regulatory Act (IGRA) of 1988, Native tribes in California may operate land-based casinos that offer card games and slots. Regulation of these tribal casinos is set out in compacts negotiated between the tribes and the state of California.

Horse Racing Betting in California

Although California enforces strict gambling regulations, it has not banned all forms of wagering. In addition to the tribal land-based casinos mentioned above, California permits the operation of cardrooms and horse racing betting. Charitable gaming, commonly conducted through raffles, and the state lottery are also legal in the Golden State.

Horse racing betting in California is regulated by the Horse Racing Law, which governs all aspects of the activity, including parimutuel wagering on horse races. With parimutuel betting, bettors place their money against one another rather than against the house. All bets placed on a race are pooled into a prize fund. The California Horse Racing Board oversees all horse races and parimutuel wagering in the state.

After the repeal of PASPA in 2018, the state considered amending its laws to allow residents to bet legally on various sports. In an effort to launch sports betting in California in 2020, Assemblyman Adam Gray and Senator Bill Dodd introduced ACA 16. The bill ultimately failed, leaving the Golden State without any options for legal sports betting.

State Lottery in California

The state lottery is another form of gambling that has been legalized in California. It is governed by the California State Lottery Act, which was passed in 1984. Lottery games launched in 1985, but during the first year of operation only scratch-off tickets were sold. Later, the state lottery began offering tickets for a weekly draw. In 2005, the Golden State joined 11 other jurisdictions in the national Mega Millions lottery. Today, players across California can also buy tickets for Powerball and numerous other lottery games.

The California State Lottery Act outlines how the lottery should be operated, which activities are prohibited, how revenue must be distributed, and the time limit for winners to claim their prizes. Like many other states, California directs lottery proceeds to support public education.

Funds generated by the state lottery are deposited into the State Treasury’s Lottery Fund. The state Controller may use these funds to provide loans to the General Fund. Otherwise, the money must be used for purposes defined by state law.

According to the State Lottery Act, 87% of lottery revenue is distributed as prizes and contributions, while the remaining 13% covers expenses. The legislation states that the lottery’s purpose is to ensure the “preservation of the rights, liberties, and welfare of the people to benefit education without additional or increased taxes, money should supplement, not be substituted for, public education funds.”

According to the State Lottery Act, individuals have 180 days to claim their lottery prizes. Selling tickets to minors or altering or counterfeiting lottery tickets is strictly prohibited.

Other Legal Forms of Gambling in California

Cardrooms have also been legalized in California, and the sector is regulated by the GCA. Although poker is not separately defined under state law, it is permitted in both cardrooms and tribal casinos.

The state imposes a 10% operator fee on the gross gambling receipts of cardroom operators. Local jurisdictions may levy additional taxes on cardrooms.

Like other legal gambling activities in the Golden State, cardrooms are licensed and regulated by the California Gambling Control Commission (CGCC). The rules of games offered in state cardrooms are regularly reviewed by the Office of the Attorney General’s Bureau of Gambling Control.

Charitable gambling has also been legalized in California. Funds collected through these games are typically used to support various charities. Most commonly, bingo games fall under this category since neither players nor the house receives any portion of the proceeds. Licensing and regulation of traditional bingo games within California fall under the remit of municipalities.