Is Betting Legal In California

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Legislative Analyst's Office, January 1998

Introduction

Gambling in the United States is a multibillion dollar industry and is rapidly expanding. Consumer spending on gambling activities nationwide has outpaced the growth in personal income over the past 14 years. Additionally, consumers have made a dramatic shift in the types of gambling activities they are participating in, with wagering on charitable games and horse races declining significantly. In this report, we outline the nationwide gambling industry, and discuss in more detail what is occurring in the California gambling industry. The California gambling industry includes the state lottery, card rooms, horse race wagering, charitable gambling, and gambling on Indian lands. With regard to gambling on Indian lands, we recommend the Legislature clarify the state's role in this area.

Table of Contents

GAMBLING IN THE UNITED STATES
  • What Kind of Gambling Is Allowed?
  • Size of the Gambling Industry
  • Indian Gambling
  • Lottery
  • Card Rooms
  • Horse Racing
  • Charitable Gambling
  • Indian Gambling
  • What Kind of Gambling is Legal in California Now? Right now, the only legal betting of any kind is allowed in tribal casinos, card rooms, racetracks (horse racing only), charity gambling, and the California state lottery.
  • California Daily Fantasy. Daily fantasy betting in California is the only option for wagering online. Although daily fantasy has not officially been legalized, the state assembly overwhelmingly passed a DFS bill, but a law has yet to be formalized.
  • Online sports betting is legal in California. No legal sports book in the United States takes bets online because of the Federal Wire Act. But you can find plenty of online sports books who would be happy to take your action from California. We suggest several trustworthy offshore California gambling sites.
  • No, sports betting in California is not legal at this time. Sports betting in California. Early in 2020 California held its first hearing on legal sports betting. The Joint Assembly and Senate Government Organizational Committees held a meeting in Sacramento Jan. 8 to get input from industry experts on what the state’s betting market could look like.



Is online horse betting legal in california

Gambling in the United States

What Kind of Gambling Is Allowed?

Size of the Gambling Industry

California Senator Bill Dodd, a sponsor of the legislation that would legalize sports betting in the nation’s most-populous state, said he was pulling the bill because of opposition from tribal.

Figure 2
Gross Gambling Revenues by Industry Segment
United States 1982 and 1996
(In Billions)
19821996
Amount Percent of TotalAmountPercent of Total
Casinos$4.240.0%$17.536.7%
Lotteries2.221.016.234.0
Horse Racing2.221.03.26.7
Charitable1.213.02.45.0
Card Rooms0.11.00.71.5
Other 0.66.02.34.8
Indian----5.411.3
Totals$10.5100.0%$47.7100.0%

Indian Gambling

Gambling in California

Lottery

Figure 6
California State Lottery Games
As of December 1997
Super Lotto
Scratchers
Fantasy 5
Daily 3
Hot Spot
Big SpinTelevision Show

Card Rooms

Figure 7
Location and Size of California Card Rooms by County
(As of October 1997)
Number of
CountyCard RoomsTablesRange of Number of Tables Per Card Room
Alameda5592-40
Butte4123
Colusa144
Contra Costa121451-100
Fresno4331-25
Humboldt392-4
Imperial393
Kern10501-15
Kings372-3
Lake 133
Lassen122
Los Angeles691444-300
Madera122
Marin144
Merced5101-3
Mono133
Monterey11382-7
Napa2175-12
Nevada263
Placer231-2
Riverside3442-39
Sacramento16863-10
San Benito122
San Bernardino12525
San Diego9641-25
San Joaquin7303-8
San Luis Obispo7162-3
San Mateo3483-35
Santa Clara6981-40
Santa Cruz8161-3
Santa Barbara144
Shasta2204-16
Sierra111
Solano252-3
Sonoma4211-12
Stanislaus5223-6
Tulare13241-3
Tuolumne122
Ventura4142-6
Yolo122
Yuba391-4
Totals1761,883

Horse Racing

Figure 10
1996 California Horse Race Meetings
and Total Parimutuel Handle
(Dollars in Millions)
Track City (County)Meet Dates Handlea
Thoroughbred Race Meetings
Santa Anita Park Arcadia (Los Angeles)12/26/95-04/22/96 $820.6
Hollywood Park Inglewood (Los Angeles)04/26/96-07/22/96 589.3
Del MarDel Mar (San Diego)07/24/96-09/11/96425.7
Golden Gate FieldsAlbany (Contra Costa)03/27/96-12/22/96323.3
Bay MeadowsSan Mateo (San Mateo)01/24/96-11/04/96 305.7
Quarter Horse Race Meetings
Los AlamitosCypress (Los Angeles)04/19/96-12/22/96$169.1
Harness Race Meetings
Los Alamitos Cypress (Los Angeles) 12/22/95-04/07/96$56.0
Cal ExpoSacramento (Sacramento)04/12/96-07/21/96 28.5
Los Angeles County FairPomona (Los Angeles)09/12/96-09/30/96$92.9
Sonoma County FairSanta Rosa (Sonoma)07/24/96-08/05/9630.9
Alameda County FairPleasanton (Alameda)06/26/96-07/07/9629.9
San Mateo County FairBay Meadows Track (San Mateo)08/07/96-08/19/9628.4
Solano County FairVallejo (Solano)07/10/96-07/22/9625.4
California State FairSacramento (Sacramento)08/21/96-09/02/9617.8
San Joaquin County FairStockton (San Joaquin)06/12/96-06/23/9612.5
Fresno District FairFresno (Fresno)10/02/96-10/13/966.7
Humboldt County FairFerndale (Humboldt)08/08/96-08/18/961.6
aHandle as defined on page 2.

Charitable Gambling

Indian Gambling

Figure 12
Indian Gambling Operations in California
As of July 1997
CountyFacility NameCity Owner/Operator
AmadorJackson Indian Bingo and CasinoJacksonJackson Rancheria Band of Miwuk Indians
ButteFeather Falls CasinoOrovilleMooretown Rancheria
Gold Country CasinoOrovilleTyme Maidu Tribe of the Berry Creek Rancheria
ColusaColusa Indian BingoColusaColusa Band of Wintun Indians
Del Norte Golden Bear CasinoKlammathCoast Indian Community of the Resighini Rancheria
Elk Valley CasinoCrescent CityElk Valley Rancheria
Lucky 7 CasinoSmith RiverSmith River Rancheria
FresnoMono Wind CasinoAuberryAuberry Big Sandy Rancheria
Table Mountain Rancheria Casino and BingoFriantTable Mountain Rancheria
HumboldtHoopaLucky Bear Casino and BingoHoopa Valley Tribe
Cher-Ae Heights Bingo and CasinoTrinidadTrinidad Rancheria
ImperialParadise CasinoWinterhavenQuechan Indian Tribe
InyoSierra Spring CasinoBig PineBig Pine Paiute Tribe of the Owens Valley
Konocti Vista Casino and BingoFinleyBig Valley Rancheria of Pomo Indians
Paiute Palace Casino--Bishop Paiute Tribe
KingsThe Palace Indian Gaming CenterLemooreSanta Rosa Band of Tachi Indians of the Santa Rosa Rancheria
LakeTwin Pines CasinoMiddletownLake Miwok Indian Nation of the Middletown Rancheria
Robinson Rancheria Bingo and CasinoNiceRobinson Rancheria of Pomo Indians
LassenNorthern Lights CasinoSusanvilleSusanville Indian Rancheria
MendocinoRed Fox Casino and BingoLaytonvilleCahto Tribe of the Laytonville Rancheria
Shodaki Coyote Valley Casino--Coyote Valley Band of Pomo Indians
Hopland Sho-ka-wah CasinoHoplandHopland Band of Pomo Indians
Black Hart Casino--Sherwood Valley Rancheria
RiversideSpa Hotel and CasinoPalm SpringsAgua Caliente Band of Cahuilla Indians
Cabazon Bingo Inc., Fantasy Springs CasinoIndioCabazon Band of Mission Indians
Cahuilla Creek Rest and Casino--Cahuilla Band of Mission Indians
Casino MorongoCabazonMorongo Band of Mission Indians
Soboba Legends CasinoSan JacintoSoboba Band of Mission Indians
Pechanga Entertainment CenterTemeculaTemecula Band of Luiseno Mission Indians
Spotlight 29 CasinoCoachellaTwenty Nine Palms Band of Mission Indians
San BernardinoHavasu Landing Resort and CasinoHavasuChemehuevi Indian Tribe
San Manuel Indian Bingo and CasinoHighlandSan Manuel Band of Mission Indians
San DiegoBarona Casino and BingoLakesideBarona Band of Mission Indians
Sycuan Indian Bingo and Poker CasinoEl CajonSycuan Band of Mission Indians
Viejas Casino and Turf ClubAlpineViejas Band of Mission Indians
Santa BarbaraChumash CasinoSanta YnezSanta Ynez Band of Mission Indians
ShastaBurney CasinoBurneyPit River Tribe
Win-River Casino BingoReddingRedding Rancheria
TulareEagle Mountain Casino--Tule River Tribe of the Tule River Indian Reservation
TuolumneChicken Ranch BingoJamestownChicken Ranch Band of Me-Wuk Indians
YoloCache Creek Bingo and CasinoBrooksRumsey Indian Rancheria
Source: National Indian Gaming Commission.
AcknowledgmentsThis report was prepared by Megan M. Atkinson, under the supervision of Gerald Beavers. The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature. Publications
To request publications call (916) 445-2375.
This report and others are available on the LAO's World Wide Web site at http:// www.lao.ca.gov.
The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.

California is an exercise in frustration. Legal sports betting simply cannot get going in the Golden State. Most recently, a proposed ballot initiative failed to gain enough signatures to make it onto the ballot.

Past efforts for sports betting legalization have stalled without ever making it out of the legislative process. Time is also running exceedingly short for the measure to pass through the needed committees and be the subject of a full vote.

Moreover, the state’s powerful tribes — which generate approximately $8 billion annually – would potentially be in opposition to the legalization of sports betting as a form of gaming expansion within the state. Notably, various pieces of online poker legislation have experienced an abundance of opposition from the tribes over the last decade in California for similar reasons.

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When will California sports betting be legal?

The possible launch date for legal California sports betting is unknown at the moment. There are two ongoing initiatives presently under consideration, both involving the state’s Indian tribes.

The first would legalize sports wagering at land-based Indian casinos and horse racing tracks exclusively. This plan would not include online/mobile wagering for the foreseeable future. This initiative is being advanced by the tribes themselves.

The second effort stems from the state’s legislature. Under that plan, online/mobile wagering would be made available on platforms affiliated with the tribal casinos and racetracks. This plan is opposed by the tribes because it would also allow the state’s cardrooms to continue offering the house-banked card games the tribes feel infringe on their exclusivity.

It’s possible that either or both measures are put on the ballot as early as in November 2020. However, for that to become reality, each will have to qualify for the ballot by June 25. The tribes’ initiative suffered a setback in their already advanced signature collection efforts for the ballot when the coronavirus pandemic led to widespread stay-at-home orders.

A lawsuit filed by the tribes with the Superior Court of the State of California on June 9 seeks to obtain an extension on the timeline needed to gather and verify the necessary signature to qualify the measure for the ballot this November.

How does California sports betting work?

There currently is no legal sports betting framework in California, although there are two initiatives under consideration.

Legal

Where can I bet on sports in California?

At the moment, there is no legal sports betting framework in California. Depending on which of the two competing initiatives eventually passes via voter referendum, bettors will either be limited to placing sports bets at Indian tribe brick-and-mortar casino locations and racetracks (the tribes’ initiative) or through online/mobile platforms associated with Indian tribe casinos and racetracks (legislative initiative).

How old do I have to be to place sports bets in California?

There is currently no legal sports betting in California. However, based on other gambling-related activities in the state, it would be reasonable to expect that bettors will have to be at least 21 years of age to place a bet whenever wagering is legalized.

How do I begin betting on sports in CA?

With no legal sports betting currently available in California, there is naturally no set policy and procedures in place for establishing a betting account in California.

However, following the model of other states, it’s expected that bettors will have to provide the following basic information to open an account:

  • Name
  • Age
  • Address
  • Phone number
  • Social security number for tax purposes
  • Valid e-mail address if online account

How do I withdraw my winnings?

Sports betting is not yet available in the state of California, and it remains to be seen if the initiative that allows online wagering will be the one that eventually is codified into law.

If online/mobile wagering is eventually available in California, it’s reasonable to expect that operators will offer the conventional withdrawal methods they typically make available in other states where legalized betting is already available.

These methods include:

  • ACH/E-check
  • Check
  • Paypal
  • Prepaid card supplied by the operator

However, if sports betting is limited to brick-and-mortar locations, then withdrawal options may be limited to checks or in-person withdrawals on site at sportsbooks.

Can I use my online sportsbook account outside of California?

Sports betting is not yet available in the state of California. If the measure being advanced by state’s Indian tribes is the proposal that is eventually voted on and passed, there would not be online wagering allowed. All bets under that plan as currently proposed would have to be made in person at the tribes’ brick-and-mortar casinos.

If the measure being advanced by the legislature is the one eventually voted on and passed, online wagering through platforms associated with tribal casinos and racetracks would be available. In this instance, bettors would physically have to be located within California – as verified by geolocation technology – in order to place a wager.

Will sports betting odds be competitive in California?

Naturally, it will be in the best interest of sportsbooks to offer competitive odds once sports betting is legalized in California. A principal factor will be what kind of tax rate and licensing fees operators are expected to pay under a legal sports betting framework.

What sports can I bet on in California?

If and when sports betting is legalized in California, it is expected that operators will be able to offer wagering on all major sports, as is the case in all other states already offering legalized wagering. That includes the following sports/leagues:

  • NFL
  • NBA
  • MLB
  • NHL
  • CFL
  • Golf
  • Tennis
  • NASCAR
  • NCAA sports

Which California sports teams will I be able to bet on?

Should the state pass legal sports betting legislation, betting on the following teams, in addition to the major colleges, will likely be permitted:

  • Los Angeles Angels (MLB)
  • Los Angeles Dodgers (MLB)
  • Oakland A’s (MLB)
  • San Diego Padres (MLB)
  • San Francisco Giants (MLB)
  • Los Angeles Chargers (NFL)
  • Los Angeles Rams (NFL)
  • San Francisco 49ers (NFL)
  • Los Angeles Lakers (NBA)
  • Los Angeles Clippers (NBA)
  • Golden State Warriors (NBA)
  • Sacramento Kings (NBA)
  • Anaheim Ducks (NHL)
  • Los Angeles Kings (NHL)
  • San Jose Sharks (NHL)

What types of bets can I make in California?

If and when sports betting is legalized in California, it is expected that bettors will have access to the following types of wagers:

  • Moneyline: A wager on which team will win the game outright, regardless of margin of victory.
  • Spreads: A bet based on the projected margin of victory that is set by oddsmakers.
  • Totals: A bet on the combined score and whether it will be over or under a line set by sportsbooks.
  • Futures: A bet on an outcome that has not yet happened.
  • Parlays: A parlay is a bet that encompasses wagers on at least two separate sporting events. For a parlay wager to be deemed successful, all the bets that comprise it must be winning ones. If any wager within a parlay is a losing one, then the entire parlay is null and void.
  • Props: Proposition wagers are bets that are typically based on metrics such as individual statistical milestones and team milestones.

In-game wagering and live betting

There is no specific indication at this point that in-game wagering and live betting will be prohibited under either of the active sports betting proposals in California. However, there’s always the possibility that outlook is altered before either measure is put up for a voter referendum.

What companies will offer sports betting?

It remains to be seen what companies/operators would be part of California’s sports betting market. If the initiative advanced by the tribes were to be the one that is codified into law, there would be no online sports betting options in California. As such, there may be a more limited number of companies involved in the market partnering with the tribes to run their brick-and-mortar sportsbooks.

However, if the legislative effort is the one that is eventually passed by voters, online/mobile betting would be made available to California residents. Under that scenario, there would be a substantial number of companies interested in entering the market, including:

  • BetAmerica
  • theScore Bet

Where will California sports betting tax revenue go?

Without an official legal sports betting framework in place, there is no set breakdown of how tax revenue from sports betting would be allocated within California.

If the model from other states is generally followed, the bulk of the revenue will naturally go into California’s coffers, with small percentages potentially going toward problem gambling initiatives or administrative costs related to the oversight of the industry within the state.

Eilers and Krejcik project the legislative initiative would produce $503 million per year in revenue for the state when the market is fully mature, including $282 million during the first six months when factoring in expected licensing fees. Meanwhile, the tribes’ plan, which would not include online wagering, is projected to bring in approximately $200 million per year.