4/1/2022

Online Poker Illegal In California

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No matter how local ordinances differ, if you take a rake or a time charge or accept money for running the game in any way, then you are operating outside of the law. A 2012 ruling by a Federal judge ruled poker a game of skill rather than a game of chance and this might someday lead to an easing of this restriction. But for now, if you charge. Therefore we can clearly state that playing poker online for money is legal once it is not operated as a percentage game. In another aspect to, is online gambling legal in California, in respect again to the California Penal Code, which states that it is illegal to make sport bets.

2020 Update: Can I Play Online Poker in California?

Another year and still no online poker in California. But there’s progress. For example, there are a few bills and talks to legalize online poker in California. We’ll wait and see what happens this year. The proposed bills have a few key details. For example, it has a license fee of $12.5 million. Secondly, it was a flexible tax rate ranging from 8.847 percent to 15 percent. Additionally, the bill provides up to $60 million a year to the racetracks. In return, they won’t be in the internet poker space. Experts say the California market could grow to $380+ million in annual revenue.

The Golden Gate Bridge, San Francisco, California (Photo by Maarten van den Heuvel on Unsplash)

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Gambling Laws in California

California is lenient and accepting when it comes to gambling. For example, the state offers six forms of gambling. However, commercial casinos aren’t legal in California.

In their Penal Code, Section 330, California defines gambling as:

“Every person who deals, plays, or carries on, opens, or causes to be opened, or who conducts, either as owner or employee, whether for hire or not, any game of faro, monte, roulette, lansquenet, rouge et noire, rondo, tan, fan-tan, seven-and-a-half, twenty-one, hokey-pokey, or any banking or percentage game played with cards, dice, or any device, for money, checks, credit, or other representative of value, and every person who plays or bets at or against any of those prohibited games, is guilty of a misdemeanor.”

Overall, California defines its gambling laws rigidly. Albeit, there are some areas with broad interpretation. For more in-depth information on California’s Constitution and anti-gambling laws click here.

Will California Legalize Online Poker?

That’s tough to say, but there are promising signs. For example, there are a few bills in the legislature trying to legalize it. The state legislature shelved the bills, but could act on it next year.

The first two online poker bills came on Feb. 21, 2014. They were similar to previous bills with small revisions. The bills, SB. 1366 an AB. 2291 were shelved in 2014. Subsequently, more bills came down the pipeline. Senatore Isadore Hall and Assemblyman Adam Gra introduced Sb. 278 an AB. 431 in 2015. Neither of those bills bassed and Reggie Jones-Sawyer presented. AB. 2863 in 2016. After that, the bill passed the Assembly Governmental Organization Committee an the Assembly Appropriates Committee. However, the bill was shelved after it didn’t get voted on in the full assembly.

But it makes sense for California to pass regulated internet poker laws. For instance, California has a population of 39.2 million, and could have the largest player pool in the United States. Secondly, this could help lower their significant state debt level of $400 billion. However, a big hurdle in legalizing online poker is opposition from Indian tribes. The state is having a hard time finding a plan that is satisfactory for all parties.

Can I Play Poker on PokerStars in California?

California has tons of poker rooms and is the most populous state in the US, but you still can’t play PokerStars there. PokerStars was kicked out of the US market in 2011 after Black Friday and only recently started coming back. It started in New Jersey and then launched in Pennsylvania in late 2019. It’s coming back on a state-by-state basis and if California legislates online poker, it could grant PokerStars a license.

In the meantime though, there are lots of sites that offer some of the same great games PokerStars did but also accepts players from California and the other 49 states. We’ve reviewed many of these sites in detail and Bovada and Ignition Poker are our top picks. Sites like Black Chip Poker and Americas Cardroom are also top-notch sites. For more info an all of them, check out our reviews page.

Types of Gambling in California

Lottery

The California State Lottery, known as the California Lottery, passed in 1984 with a 58% voter approval. After that, the state sold its first ticked on October 3, 1985. Additionally, 87% of all revenue goes back to the public. In detail, 50%-53% goes towards prizes, 34%-37% to public education, and 13% goes towards administration.

Since its inception, $35 billion has gone towards public education. The lottery generated about $1.3 billion in the 2018-2019 fiscal year:

  • K-12th Grade – 80.3%
  • Community Colleges – 13.6%
  • California State University System – 3.7%
  • University of California – 2.2%
  • Other Educational Entities – 0.2%

Pari-Mutuel Wagering

Pari-mutuel wagering in California is limited to horse racing. It passed back in 1933 through a constitutional amendment. The California Horse Racing Board was created to regulate this activity. The board includes seven members, appointed by the Governor, that serve four-year terms. Their main responsibilities include:

  • Assure protection of the public.
  • Encourage agriculture and the breeding of horses in this state.
  • Generate public revenues.
  • Provide for maximum expansion of horse racing opportunities in the public interest.
  • Provide uniformity of regulation for each type of horse racing.

Simulcast pari-mutuel wagering is offered at remote locations. For example, bettors can place these bets at websites.

Indian Casino

The Supreme Court ruled in favor of the California vs Cabazon Band of Mission Indians case in 1987. Subsequently, Indian tribes were free to build casinos. Today 62 of the 109 California tribes own 68 casinos.

Indian casinos in California generate an estimated $7.5 billion annually and $500 million in tax revenue. The Pechanga Resort and Casino is the largest casino in California. There are over 3,400 slot machines and 188,000 square feet of gaming space in the casino. It cost $262 million to build, opened on June 24, 2002, and employs 4,100 people.

Racetracks

On June 27, 1933, voters approved Proposition 5. This legalized pari-mutuel wagering on horse races. All other wagers are illegal. Section 19593 of the Business and Professional Code states:

California Online Poker Law

“No method of betting, pool making, or wagering other than by the parimutuel method shall be permitted or used by any person licensed under this chapter to conduct a horse racing meeting.”

Charitable Gaming

Nonprofit organizations must register with the California Bureau of Gambling Control to host a charity event. These organizations are limited to one event per calendar year. Additionally, you have to be 21 or older to participate.

On Jan. 1, 2007 the Business and Professions Code sections 19985-19987, passed in California. This allowed pre-approved nonprofit organizations to hold “charity poker night” fundraisers. Nonprofit organizations and suppliers must submit an annual registration form to the Bureau for approval. The State of California Department of Justice doesn’t approve all games; please see the current game list here.

Specific State-by-State Laws

Online Poker Illegal In California

Alabama – Alaska – Arizona – Arkansas – California – Colorado – Connecticut – Florida – Georgia – Hawaii – Idaho – Illinois – Indiana – Iowa – Kansas – Kentucky – Louisiana – Maine – Maryland – Massachusetts – Michigan – Minnesota – Mississippi – Missouri – Montana – Nebraska – New Hampshire – New Mexico – New York – North Carolina – North Dakota – Ohio – Oklahoma – Oregon – Pennsylvania – Rhode Island – South Carolina – Tennessee – Texas – Utah – Vermont – Virginia – Washington – West Virginia – Wisconsin – Wyoming

How a Decade of US Laws Changed Online Poker

Before 2011, the United States comprised the largest online poker market in the world. Hundreds of poker sites catered to the millions of American players.

The US government began to crack down on the unfettered internet poker market in 2006 with the Unlawful Internet Gambling Enforcement Act (UIGEA), which drove many sites – including PartyPoker – away from players based in the 50 states. And the indictments of Black Friday – April 15, 2011 – involving executives at PokerStars, Full Tilt Poker, Absolute Poker, and UltimateBet were the final straws in that crumbling haystack. Two of those four sites disappeared altogether, Full Tilt was discovered to be corrupt and bankrupt, and PokerStars was ousted from the US market while also paying a hefty price in financial settlements and business.

Approximately seven months after Black Friday, the US Department of Justice answered a request to clarify the 1961 Wire Act, and its ruling changed American gaming as it pertained to the internet. The new interpretation of the longstanding law held that it did not apply to online lotteries and other types of gaming, which meant that states suddenly had the authority to legalize online poker.

Three states addressed the issue within two years of the ruling, and another state legalized online poker more recently:

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  • Nevada legalized online poker.
  • Delaware legalized online poker and casino games.
  • New Jersey legalized online poker and casino games.
  • Pennsylvania legalized online poker and casino games.

Meanwhile, other states made sure their laws specifically outlawed online gambling. States like Hawaii and Utah long before decided against legalizing any type of gambling, but other states chose to add wording to their statutes that mentioned gaming on the internet.

50 States, 50 Sets of Laws

Is Online Poker Illegal In California

Most of the 50 states make no mention of online poker or internet casino games whatsoever in their statutes. This leaves the laws up to legal and judicial interpretation. Few states have found any clarification in the courts due to state officials hesitant to prosecute online gambling-related crimes. The site operators are located offshore, state laws are often unclear, and cases could be costly.

All of it can be confusing for players.

This is the reason this site’s management decided to provide a resource for players. While none of the state pages are intended to serve as legal advice, they do offer summaries of the laws in which poker and online gambling are mentioned, as well as links to state resources.