Online Poker Real Money Usa Legal California
Real Online Poker for US Players Things are changing fast for online poker. There are four states that have regulated games — Nevada, New Jersey, Delaware, and Pennsylvania – plus legal, sweepstakes poker games in other areas. While the boom of 10 years ago is over, online poker for real money in the US is on the.
- Online Poker Real Money Usa Legal California Online
- Win Real Money Online Poker
- Online Poker In California
- Online Poker Legal California
- With the biggest player pool of any US friendly offshore poker site – Ignition Poker are able to offer a bigger choice of cash games, poker tournaments and sit n goes than all the other US sites combined. New players can get $2000 deposit bonus to help check out the real money games. You’ll find the super-fast Zone Poker, mobile poker options and a huge $2 million in tournament guarantees.
- The world's largest real money online poker site opted to exit the U.S. Market back in 2011 after it was caught up in a well-publicized investigation by the U.S. Justice Department.
- Legal real money online poker in the USA is our another topic to talk about. Many potential players mistakenly believe that it is illegal to play in the US. This is not true! Very few states have laws on books covering online pokery, and it is therefore very legal to play in the comfort of their home in almost every US state and region.
California is a poker player’s dream from a live game standpoint with some of the best (and busiest) live poker rooms and casinos in the country. Finding a nice poker room for a cash game or a tournament is usually just a short trip for most Californians.
Major tournament series like the World Poker Tour and World Series of Poker Circuit also have stops in California. Regulated online poker for real money, however, has thus far remained unattainable at a legislative level.
The next best option for online players in California right now is sweepstakes poker sites, such as Global Poker, or a short trip to play some real money online poker in Nevada at WSOP.com. Until legislators get a bill across the finish line for the governor’s signature, traditional legalized online poker remains off the table in CA.
Best California Poker Sites
Latest California online poker news
- by Sean ChaffinOctober 6, 2020
- by Sean ChaffinOctober 1, 2019
Online Poker in California
While there aren’t any traditional legal online poker sites yet, there are some options players might check out. The neighboring state of Nevada offers one of the most popular online poker sites in the US.
WSOP.com is the online home of the World Series of Poker and offers online poker in Nevada and New Jersey. The site offers cash games, tournaments, Sit & Go’s and major tournament series.
The WSOP partners with 888poker, which provides software for the poker client and mobile poker app. 888 also offers online poker in New Jersey and Delaware. WSOP.com and 888poker offer the country’s only shared liquidity market between NJ, Nevada, and Delaware.
This makes for bigger player and prize pools than at other legal online poker sites in NJ or poker sites in Pennsylvania. By 2020, the WSOP.com/888 interstate compact was seeing even bigger increases in player pools.
The WSOP even runs some of its circuit events on the platform, offering players a chance to win championship rings. A California player heading to Las Vegas, Reno, the Lake Tahoe area, Carson City, or anywhere else in Nevada has the chance to play on WSOP.com.
Sweepstakes poker is another option for players in California. These sites are licensed under sweepstakes law (similar to McDonald’s Monopoly game, for example) to offer a mix of social gaming and real money online poker. Global Poker is the largest and most trusted of these.
Sweepstakes online poker in California
Sweepstakes poker is a reasonable alternative for Californians who want to get some real money online poker hands in. Global Poker is one of the most popular sweepstakes poker sites and provides a comparable poker experience to a standard online poker site.
Global Poker offers two forms of online poker:
- You can play free games with virtual currency in the form of Gold Coins.
- You can purchase additional Gold Coins to receive an added virtual currency called Sweeps Coins, which lets you play in separate Sweeps Coin ring games, Sit & Go’s, MTTs, and regular live tournament series with major guarantees.
Any Sweeps Coins you win can then be redeemed for real cash prizes. And just like any legalized online poker site you can securely purchase Gold Coins, receive your Sweep Coins and cash them out easily online.
Beyond California, Global Poker is available to players in 49 states (excl. WA) and Canada (excl. Quebec). If you’re wondering what its company structure is, Global Poker is owned by VGW Holdings Limited, a publicly traded company incorporated in Australia. Global is also licensed by the Malta Gaming Authority, so players can expect a regulated environment with a fair game and security. VGW also owns and operates two sweeps cash casinos—Chumba Casino and LuckyLand Slots.
Global Poker offers games in Texas Hold’em, Crazy Pineapple and Omaha.
Online Poker in Nevada
Those looking to play some traditional online poker have WSOP.com Nevada as an option in Nevada. Southern California residents have a four- to five-hour drive to Las Vegas (depending on exact location and traffic). Players hitting Sin City for some fun may also want to battle it out online in popular events like the Online Super Series, which drew record numbers in March 2020.
In Northern California, a weekend trip to Lake Tahoe, Reno, or Carson City could also include some online poker. WSOP.com is available to players anywhere in Nevada.
Getting started is easy. You can create an account from anywhere and also make a deposit from anywhere as well. Sign up only takes a few minutes and you expect to provide:
- Name
- Address
- Phone number
- Username
- Password
Making a deposit is also easy and can be accomplished from anywhere. Players depositing at WSOP.com can use any of the following:
- E-check bank payments (ACH transfers)
- Visa/Mastercard
- PayNearMe, available at thousands of retail outlets
When making that deposit, expect safety and security with legal online operators. Unregulated sites may not have well-known safe deposit methods. US-facing regulated poker sites must follow strict procedures and technical specifications to make sure player information and funds are kept secure.
Operators also make use of sign-up and deposit bonuses and that goes for WSOP.com.
It’s important to note that online operators use geolocation software to determine a player’s location when attempting to play. A player must be physically located within the state to play legally and geolocation software makes sure of that.
Real Money Poker Apps in California
Playing poker on a mobile app has never been more popular. Many players like to take advantage of the convenience and user-friendly environment that real money poker apps provide.
An app can easily be downloaded on your phone or tablet. Poker apps have improved greatly in recent years and now provide easy lobby navigation, simple game play features, and the ability to play more than one event at the same time.
Most tournaments and cash games offered online can also be found on the app. Although it’s possible to play large multi-table tournaments on some apps, smaller events like Sit & Go’s are easier to play on mobile devices.
Sweepstakes site Global Poker doesn’t yet offer an app, but players can make use of its quick play feature. It’s a web-browser based system, meaning you don’t have to download any poker software.
That system also works well in a mobile environment. Mobile players at Global Poker will basically find the same experience they’d find using a laptop or desktop computer.
Real money poker apps can also be downloaded by Californians to be used when in a state that allows online poker. Those states currently include Nevada, New Jersey, Delaware, and Pennsylvania. Geolocation software is used to confirm that players are within a legal jurisdiction. However, players can still sign up, withdraw funds, and deposit from any location.
Free Poker Online in California
Most real money poker sites offer some form of free poker making use of virtual currency. These are often in the form of mobile apps or social media games. Popular free poker offerings from major poker providers include:
- WSOP social gaming platform
- PokerStars.net (and a social gaming platform)
- WPT social gaming platform
- ClubWPT – Sweepstakes poker site of the World Poker Tour
Free poker apps are a fun way to play and practice without any real money on the line. Global Poker also offers free ring games and tournaments through its sweepstakes model. Players also have the option of using Sweeps Coins earned as well for a shot at redeeming them for real cash.
If you want to set up a private home poker game for your friends online, you can do so via the free play money platform at PokerStars.net. You can also access free-to-play poker platforms in virtually any other non-legalized states including Florida, Texas, etc.
Estimates for Traffic in California Legal Online Poker
Legal online poker in California could be a game changer for the industry. The state is the most populous in the US with 39.5 million people. With a large number of poker rooms and casinos, there would be a massive pool of online players compared to the four states where online poker is already live. Those are:
Two more states have legalized online poker but have yet to have any sites go online:
Legalization in CA could alter the online poker landscape in the US. Major operators including PokerStars, partypoker, WSOP.com, and others would be interested in moving into the state. California legalization could also spur other high-population states to get on the bandwagon as well, especially if interstate compacts are allowed. Online poker in Florida or online poker in Texas would be similarly impactful.
As of 2020 the WSOP/888poker platform among Nevada, New Jersey, and Delaware was at record numbers. Average days see between 500 and 800 players. If the site launched in California, that traffic could surge and be eclipsed easily in the Golden State.
Which Casinos in California Will Have Online Poker Sites?
If CA were to offer some type of legal online poker, it’s a good bet it would mimic current laws in other states at least to some degree. In New Jersey and Pennsylvania, online operators partner with live casinos or other gaming enterprises in the state. For example, PokerStars partners with Resorts Casino in Atlantic City and Mount Airy Casino in Pennsylvania.
There is no shortage of CA casinos and card rooms that would look to get in on the action. With such a large population, the state could also probably support a few online poker sites. There are no current partnerships with a legal framework in place, but here are a few brands that might be ready to enter the online poker arena. Those might include:
Live Poker Rooms – While they may call themselves casinos many are in fact mostly card rooms. Some of those that stand out in the state include:
- Commerce Casino
- Bicycle Club
- Gardens
- Bay 101
- Hustler
- Ocean’s Eleven
and numerous others.
Tribal casinos – Along with poker rooms, there are also several tribal casinos that might be interested in online poker partnerships. A few of those might include:
- Pechanga
- Agua Caliente
- Thunder Valley
- San Manuel
- Morongo
and others. Of these, Thunder Valley, Commerce, Bicycle, Gardens, Bay 101, and Ocean’s Eleven have all hosted WPT and WSOP Circuit events. Those with a large footprint in live poker may also look to add their imprint online.
For those hoping WSOP.com could be an option in the state, that could be possible in a legal environment. WSOP owner Caesars Entertainment operates Harrah’s Resort Southern California. This Indian casino is located in Valley Center and is owned by the Rincon Band of Luiseño Indians.
If operators are allowed to partner with casino properties in the state, Harrah’s and WSOP make for a natural fit.
Popular Poker Games in California Card Rooms
Poker rooms are plentiful in California and the game has a deep tradition in the state. Numerous CA players from the state have gone on to success in major tournament series and events. Most of the major poker rooms in California offer all the major games players have come to love from low buy-ins to nosebleed stakes. The most popular poker games offered include:
- Texas Hold’em (limit and no limit)
- Omaha (and Hi/Lo)
- Seven Card Stud (and Hi/Lo)
- Lowball including Razz and Deuce to Seven
- Pineapple and Crazy Pineapple
Is Online Poker Legal in California?
Currently, online poker in California is not legal. For more than 10 years, several attempts have been made by legislators to legalize it, but with no success. With so many gaming interests in the state – including horse tracks, poker rooms, and tribal casinos – satisfying all interests with an online gaming law has been a struggle.
In those attempts, these stakeholders weren’t able to reach a consensus and the bill failed to come to a vote. In 2016, Assemblyman Adam Gray took a different approach from previous efforts and introduced AB 2863 during the 2016 legislative session. He hoped to solve the issue with the debate about whether horse racetracks should get involved in the state’s online poker industry.
The CA horse racing industry would have received up to $60 million per year from online poker taxes. Additionally, 5 percent of the annual taxes would have gone to California’s Fair and Exposition Fund, which supports administering agencies, state, county, and district fairs.
The other 95% would be divided three ways. The vast majority of that (95.4%) would go toward purses for horsemen. The remaining 4.6% would be evenly divided between pensions for horsemen and employees of racetracks. The bill didn’t address licensing fees or a tax rate. Previous versions required a $15 million deposit and a 15 percent tax rate.
AB 2863 also included a bad actor clause, which would have kept out operators like PokerStars, which operated in the US after the Unlawful Internet Gaming Enforcement Act (UIGEA) was put in place in 2006. Because of this, PokerStars and its coalition rallied against the bill. The 2016 legislative session came to an end without a vote on AB 2863. Since then there hasn’t been much momentum in legalizing online poker.
Currently, Delaware, Nevada, New Jersey and Pennsylvania are the only states that offer traditional legal online poker. West Virginia and Michigan have also legalized online gaming, including poker, but aren’t expected to offer any online poker sites until 2021.
Previously proposed legislation included the possibility of pooling players from California with players from other states such as Nevada or New Jersey, but California would first have to legalize online poker. Even if online poker was legalized, continued debate about the Wire Act might jeopardize any current efforts at interstate compacts and shared liquidity. The Department of Justice has argued that the act applies to other forms of online gaming beyond sports betting.
The gaming industry argues that the law was meant solely for sports betting. A change in that could jeopardize online lotteries, online poker, and other forms of iGaming. The Wire Act issue remained in federal court as of April 2020, but the gaming industry (led by a lawsuit by the New Hampshire lottery) had won an early round before the DOJ appealed.
Past California online poker bills
California Assemblyman Reginald Jones-Sawyer introduced AB 167 in 2015.The bill would have permitted all card clubs, tribes and racetracks to offer online poker in California.
Additionally, it would have created player penalties for giving action to unlicensed, offshore sites.This bill had the support of the PokerStars coalition, but not the Pechanga coalition.
Assemblyman Mike Gatto introduced AB 9 during the 2015 California legislative session.This bill included a “bad actor” clause and did not permit licensing of racetracks. This bill had the support of the Pechanga’s coalition, but not PokerStars’ coalition.
Finally, State Sen. Isadore Hall and Assemblyman Gray introduced SB 278 and AB 431, respectively.These were placeholder bills with no primary language about online poker.
PokerStars’ coalition
PokerStars’ coalition consists of the Morongo Band of Mission Indians, San Manuel Band of Mission Indians, Commerce Casino, Hawaiian Gardens and the Bicycle Casino.
This group opposes the so-called “bad actor” clause, which would exclude any company that accepted bets after Dec. 31, 2006, in the US without proper licensing.
The reason for PokerStars’ coalition’s opposition to the clause is apparent. As a result of the provision, PokerStars would be excluded from operating in California, removing the group’s partner.
The PokerStars coalition also supports the inclusion of the state’s racetracks. The consensus is that any bill that does not include the horse racing industry will get a veto by Gov. Jerry Brown.
Pechanga coalition
There are seven tribes that oppose bad actors and the participation of racetracks in California. Those tribes are:
- Agua Caliente Band of Cahuilla Indians
- Barona Band of Mission Indians
- Lytton Band of Pomo Indians
- Pechanga Band of Luiseño Indians
- Viejas Band of Kumeyaay Indians
- Yocha Dehe Wintun Nation
- Sycuan Band of the Kumeyaay Nation
Other tribal positions
Most other California tribes have remained mostly silent on the issue of racetracks or bad actors.Pala Interactive, the online gaming subsidiary of the Pala Band of Mission Indians, appears to expect the inclusion of racetracks.
Rincon Band of Luiseño Indians partnered with Caesars for its land-based casino. Hence, it seems logical that it would use WSOP.com for its interactive gaming.Rincon and Caesars both stated that they support the inclusion of PokerStars in the California online gaming market.
A Brief History of Poker in California
Poker has a deep history in California with poker dating back to its days during the Old West and American westward expansion. Poker is synonymous with the western frontier and flourished in the 19th Century during this expansion.
Miners flush with new cash during the California Gold Rush of the mid-1800s hit the tables to gamble some of their new earnings. The state’s constitution in 1879 outlawed all forms of gambling but left out draw poker, which was considered a gentleman’s game. An 1891 law making gambling illegal again left out draw poker.
Legal or illegal, poker continued to flourish. Poker clubs continued into the 1900s sometimes despite even local bans on gambling. Californians historical love of poker just wouldn’t go away and Gardena became a particularly popular hotbed for several poker clubs in the 1950s.
Varying localities offered different regulations and poker rooms continued well into the 1980s and ‘90s. Poker remains extremely popular in CA and keeps alive the state’s spirit of the frontier and the favored game of the Old West.
California online poker FAQ
Why should I play only at legal online poker sites?
Should online poker ever become legal in California, players can be assured that their money and personal information are safe. In the US, legal online poker sites must adhere to strict laws and regulations. For example, the Nevada Gaming Control Board regulates online poker for the state of Nevada. WSOP.com and its partner 888poker are trusted websites with proven experience in running online gaming. Player safety and security are paramount.
WSOP.com even assures players on its website: “If you use this website to send personal data to Caesars Operating Company, Inc., your transmission will be protected by Secure Socket Layer (SSL).” SSL is a technology employed by Caesars Entertainment and other online operators that encrypts your information during transmission. Caesars further notes: “It is our policy to take all reasonable steps to ensure that your personal data is securely maintained with access limited to those who need such access to serve you.”
You won’t see anything like this at offshore, unregulated sites. They aren’t governed by any US gaming commission and don’t meet strict standards of operation like legal US sites.
Player collusion is another security issue that could impact the fairness of the game for players. To combat this, WSOP.com and other operators have software that monitors this issue and other discrepancies. This helps maintain the integrity of the game. Offshore and underground sites are not as heavily regulated as legal online poker sites. Slow payouts and loss of player funds are regular complaints of former players. Playing on legal, safe online poker sites offers numerous player protections.
Why is California behind other states in legalizing online poker?
While California was one of the first states to offer legal card clubs, its ability to move that a variety of factors hampers the industry’s move to the internet.
There are three gaming segments in California: card clubs, racetracks and tribes. All three have different opinions as to how to approach online poker, even within the groups. Because of this, there are issues with agreeing on how to move forward.
Additionally, there are conservative groups that oppose any form of gambling expansion.
How many poker players are there in CA?
That’s a difficult question to answer but a visit to any card room in the state will find plenty of players battling it out at the poker table. With a population of 39.5 million, it’s a good bet at least a few million consider themselves poker players to some degree or another.
Can you play on PokerStars in CA?
No, PokerStars is available to players in numerous countries around the world, but that doesn’t include all of the US. As of April 2020, PokerStars is only available in New Jersey and Pennsylvania in the US. And these states are “fenced in” markets, meaning players in those states only play each other online – no shared liquidity markets at the moment.
Can you play on WSOP.com in CA?
No, WSOP.com is currently only available in Nevada and New Jersey, where it functions in a shared liquidity market. That also includes its software partner 888poker’s offerings in New Jersey and Delaware. This combination remains the largest legal online poker platform in the US.
New players on WSOP.com in legal states can currently claim a free no deposit bonus for opening a new poker account.
Does Commerce Casino have an online poker site?
Commerce Casino doesn’t have an online poker site. However, you can follow the casino’s news on Facebook, Twitter, and Instagram. Here you can keep updated with the latest news and receive discounts, invitations, and special deals and promotions.
Does Bicycle Casino have an online poker site?
The Bicycle Casino doesn’t have an online poker site. However, it does boast livestream poker games with its Live at the Bike online show. The poker room remains one of the most popular in the state.
Can you play on offshore poker sites in CA?
Offshore poker sites are NOT licensed or regulated. This may make players’ information and funds vulnerable to security breaches. Players of these sites often complain about slow payouts and if the site folds altogether players may not be refunded.
A better option for California residents would be to use a platform in Nevada. Global Poker, a sweepstakes poker site, is another option and is available to players in the Golden State.
What are the main issues keeping online poker from legal online poker?
Online Poker Real Money Usa Legal California Online
The main issues pertaining to the inclusion of racetracks and PokerStars.
Will California offer legal online casino games?
All bills introduced up to this point have only proposed legalizing poker. They did not include casino games or sports betting.
Will California pool with other legal poker states?
Most California online poker bills have proposed the possibility of sharing players with other states, so it is possible that California could choose to pool players with New Jersey, Nevada, and Delaware should the state move forward on legalizing internet poker.
As of 2020, however, this wasn’t just a question of a state’s choice. Until the murkiness of the Wire Act is made clear, interstate compacts remain an open question.
Other states that have recently legalized, such as Pennsylvania and Michigan, haven’t included shared liquidity in their online gaming legislation. This could be altered once legal disputes are cleared up on the issue.
How soon would California launch online poker if it passes legislation?
It would take between 12 and 18 months for California online poker to launch if approved by lawmakers.
Will PokerStars operate in California?
That depends on the bill that eventually passes. While some include language that would specifically exclude PokerStars, some industry experts believe that a bill excluding PokerStars can never pass in California.
How much tax revenue will California generate?
It is estimated that California online poker rooms would generate about $350 million a year in rake. This would translate to $35 million a year in tax revenue at a rate of 10 percent.
Additional licensing fees for sites and employees would also create taxes for the state.
Will California poker sites be available outside of California?
Win Real Money Online Poker
Legal California poker sites would only be available in states where a liquidity sharing agreement is created. Otherwise, players will be required to be in California at the time of action.
Important CA Notes
- CA residents can play at offshore poker rooms legally
- Despite several recent pushes, iPoker has not passed yet
- Tribal casinos offer plenty of live cardrooms
- Commercial casinos are still currently banned
- Prospects for legalization are excellent in coming years
“Reviewed by Chuck Humphrey – 50 year Gaming Law Practitioner”
California is one of the American states actively pursuing the legalization of online poker. Since 2010, a number of bills attempting to legalize the activity have been introduced in the state legislature, but none have been successful thus far.
The state, however, has finally moved forward – at least, in the discussion sense. The state has scheduled several hearings in the coming months. Even with these hearings, there is still a lot of work that needs to be done for a passage of a bill in the Golden State. Despite several bills in the legislature, there has yet to be a consensus on a bill that will satisfy California’s many gaming interests.
Future Outlook of Online Poker in California – Estimated date of legalization: 2019-2020
The following graph tracks our expected legislation of online poker in California on a state law level. It is currently already legal on a Federal level. This graph monitors the current rise or fall of expected legalization.
Card room operators in California are up in arms over what they believe to be...
For the second time since the outbreak of the coronavirus pandemic, cardrooms...
Recent Activity – A Work in Progress
Though California does not have any law in place that permits online poker at a website operated in California, California statutes do not expressly forbid online poker (see Penal Code Sec. 337a(a)(3) and (6), as well as 337j for more clarification), and it is still legal according to the US government’s 2011 Wire Act revision. But, under the given circumstances, it’s currently deemed illegal to own and/or operate an online poker site within the state. Despite the state not allowing for state-operated poker sites, the preamble to SB 1485 of 2010 stated the following about unregulated poker:
“Over 1.5 million Californians participate at offshore poker websites, sports betting and casino sites on more than 600 unregulated gambling Internet Web sites every week.”
With such activity, it’s no surprise online poker legalization in California has been the subject of a perpetual list of bills – which is promising. A brief history of the bills introduced so far leading up to the present situation is given below.
The reason legalization has not occurred in California is a lack of consensus within the Indian tribes that control significant interests in land casino gambling. Work is being made towards a resolution of this issue, but there are also differing views between the Indian tribes and other interest groups.
An illustration of this lack of cohesiveness is the dissolution of the California Online Poker Association (COPA). COPA was formed in 2010 with members from 31 Indian tribes and 20 prominent card rooms and horse tracks. The objective was to push for legalization of online poker in California. For over a year, it gave hope to millions of online poker enthusiasts. Senator Wright introduced SB 1485 in the California senate in March 2010. A hearing set for June 29, 2010 was canceled by the author and the bill died when the senate session expired. Senator Correa introduced SB 40 and Senator Wright introduced SB 45 in December 2010. Both bills died in January 2012.
Senator Wright introduced an online poker bill for the third time in February 2012, SB 1463, but died without any hearing. In October 2012, the Morongo Band of Mission Indians and the San Manuel Band of Serrano Mission Indians, two of the strongest member groups, left COPA. A Los Angeles Times report[A] stated that Ryan Hightower, the spokesman for COPA, announced that the organization had disbanded because of, “insufficient progress within the legislature toward the passage of an online poker bill.” Senator Wright again introduced his online poker bill, SB 51[D], in December 2012. 2012 was a lost year for online poker legislation in the state, though it did garner plenty of momentum for legalization of online gambling.
In 2013, the state gathered even more steam, with California tribes banding together to draft a bill that was introduced that year[B]. The tribal bill was never fully introduced, but there were other bills that did get introduced in the state legislature. Senator Correa introduced bill SB 678[E] in February 2013. Both were not passed and new proposed bills SB 1366 by Senator Correa and AB 2291 by Assemblyman Jones-Sawyer, were introduced on February 21, 2014 that would regulate online poker if passed. Both these bills were shelved on August 5, 2014, but a new bill was introduced in December 2014 by Assemblyman Mike Gatto, AB 9.
All of these efforts died in the state legislature, a familiar theme for those who have been following online poker in the state since the Department of Justice reversed their decision on the Wire Act[C]. The debates surround bad actor clauses, the inclusion of interstate compacts, tax rates, and which entities in the Golden State would be allowed to offer online gaming.
There were high hopes for passage within 2015 after Gatto’s bill was introduced the year before, along with another bill from Assemblyman Reggie Jones-Sawyer. In 2014, he introduced SB 678 with State Senator Lou Correa, who also worked with him on his 2015 introduction of AB 167[F]. Mike Gatto pulled his bill in July 2015, saying he would not move forward because “there was no consensus” on the issue just yet. Jones-Sawyer’s AB 167 was condemned to the same fate.
Although AB 431[G], a bill introduced by Assemblyman Adam Gray, did get to the Assembly Floor despite opposition – the bill offers no specifics on online poker regulations and is only two pages long. It’s noteworthy it made it the floor, but this was nothing more than a placeholder with no chance of passage.
In short, almost all potential bills through 2015 have been withdrawn or had no shot of passage. Bad actor clauses and tax rates remain a hotly debated topic, but there has been some compromise there. There was heavy division among the coalitions about giving California racetracks the ability to apply for licenses if online poker was legalized, but most of those discussions have been resolved in 2016. With the budget finalized on July 24, 2015[H], the door was shut on the chances of iPoker passing in 2015.
In February 2016, California Assemblymen Adam Gray and Reggie Jones-Sawyer introduced AB 2863 – a bill to legalize online poker. This bill received a hearing on April 27, 2016 and it passed the Assembly Governmental Organization Committee by a 18-0 vote. AB 2863 would give the horse racing industry up to $60 million a year and in return they cannot own or operate any state online poker websites; a move in the right direction and well received. On June 22, 2016, the state’s Assembly Appropriates Committee passed the bill. It then went to the full Assembly but did not receive a vote and was shelved. This legislation would require a $12.5 million license fee from potential poker website operators, charge a tax rate ranging from 8.847%-15% depending on the amount of revenue generated, and would not allow PokerStars to enter the market until 2021.
AB 1677, a bill to legalize and regulate online poker in California, was introduced on February 17, 2017 by Assemblyman Reggie Jones-Sawyer. It’s pretty much the same bill as the previous year, and unfortunately, it didn’t make any headway.
Nevertheless, the future is still relatively bright long-term for online poker legalization in California. Though those who follow the situation must be getting sick of the same arguments and divisions between different coalitions, there is still a ton of interest going forward.
PrivateTable.com, Santa Ysabel Tribe
Santa Ysabel Interactive launched an online poker site in June 2014, despite California not yet regulating the activity. The site was located at PrivateTable.com, but appears to have shut down around May 1, 2015, which took residents of California who are 18 or older. As one would expect they were being sued by the state of California and there is no real money play.
The Tribe has stated that they support any efforts in the State to pass online gambling related legislation, but are relying on the federal Indian Gaming Regulatory Act (IGRA), along with their tribal sovereignty to state that they are within their rights. The site was scheduled to be available for real-money play in November of 2014, but nothing came to fruition. The Tribe has closed their only land-based casino after amassing a debt of $50 million.
Some speculate that this may speed up the process of a bill passing, but I think PrivateTable.com was more of sideshow. The barriers and issues that have stopped something from passing so far still remain the same.
Current Gambling Laws in California
In order to appreciate why California has been unable to pass laws permitting regulated online gambling, one has to understand the history and rights of Native Indians with respect to gambling.
In 1987, the U.S. Supreme Court recognized the inherent right of Indian tribes to offer gaming on federally recognized tribal lands. In 1988, Congress passed the Indian Gaming Regulatory Act (IGRA)[I] through which tribal governments could conduct gaming as a means of promoting economic development and self-sufficiency. Under the IGRA Indian tribes (referred to as “nations”) had to negotiate with U.S. states concerning scope of gambling and level of regulation. But it was made clear that Indian nations would be the sole owners and primary beneficiaries of Indian gaming. Because compacts have to be made with states and because the tribal gaming is subject to Federal oversight, the process has never been totally smooth.
California has one of the largest and most powerful Native Indian lobbies. It also has a history of antagonism between the Indians and the settlers. According to the California Nations Indians Gaming Association (CNIGA), there are 61 tribes that have signed compacts with California. The compacts allow for the operation of video slot machines and casino banked card games in a competition free environment subject to the tribal casinos paying a share of the revenue to the state. CNIGA[J] has stated that the California Indian tribes feel they have been forced into accepting unfavorable terms in these compacts and are therefore now wary of every move that is being made with respect to online gambling. Because of the contributions they make to the Democrats and Republicans alike, the Indian tribes have sufficient backing in the legislature and are able to stall undesirable bills.
For the state in general, most gambling statutes are covered in Division 8 of the Business and Professions Code. Chapter 4 covers horse racing. Chapter 5 is The Gambling Control Act[K]. Clause 19801 (a) prohibits commercially operated lotteries, banked or a percentage games, and gambling machines, and strictly regulates pari-mutuel wagering on horse racing. Therefore, the forms of gambling permitted apart from the native tribal casinos are poker in card rooms, the California lottery and betting on horse races. The operators conducting such activities are required to obtain a license.
Section 330 of the California Penal Code[L] provides a partial list of the prohibited games and the penalties for violation. The section reads, “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, and shall be punishable by a fine not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000), or by imprisonment in the county jail not exceeding six months, or by both the fine and imprisonment.”
History of Gambling in California
Online Poker In California
Land Based Poker in California
Gambling in California[M] report by Dunstan provides the background of gambling in the state. Poker has been played in California since the time of the gold rush. It continued to be played in card clubs after the state was founded in 1850. These card clubs were neither declared legal nor illegal. They were also not regulated. However, a number of card games were explicitly banned and this list included stud horse poker. In the 1970s, Texas Hold’em poker became extremely popular in the neighboring state of Nevada. The California card clubs also began to offer this variant. After prolonged litigation, all forms of poker became permissible in card clubs from 1987. In 1984, under the Gaming Registration Act all existing card clubs had to obtain a license. New card clubs would have obtain a license before starting operations. Today, the Indian tribal casinos are also allowed to offer poker.
The rationale for allowing poker in card clubs is as follows: The card clubs only charge fees for providing services and do not take money from the players as a result of wagering. The amounts lost by some players are won by other players and therefore the money remains within the community. In comparison, in card games like blackjack players lose money to the house. Therefore, games in which players wager against the house are banned. Another reason is that poker involves a fair element of skill.
There are two other forms of land based poker allowed according to California gambling laws[N]. Players can wager on poker at homes provided no rake is taken. Nonprofit organizations are allowed to host poker games under restricted conditions for the purpose of fund raising. The material constraints are that no cash prizes are to be awarded to the winners and that at least 90% of the revenue collected should go to charity.
Non-Poker i-Gambling Laws in California
There are two sets of gambling laws in California. The compacts with the Nation Tribes govern gambling at the casinos on Indian lands. These casinos offer banked card games and slot machines, which are illegal in the rest of California. The other set of gambling laws stem from the constitution of California. Gambling is covered in the Business and Professions code of the constitution. The California Penal Code prescribes the punishments and other details. The major forms of gambling permissible are non-banked games like poker in card clubs, horse racing and lottery. Gambling at fund raisers and on cruise ships are also permissible, but are prevailing to a minimal extent.
Section 19 (b) of Article IV of the constitution states “The Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.” The detailed laws are provided under Chapter 4 of Division 8 the Business and Professions code. Article 9 deals with the wagering. Only pari-mutuel wagering is allowed. All other forms of betting are illegal. Originally, the wagering had to take place at the racetrack. Now simulcast wagering is allowed. California residents can place wagers from authorized sites away from race tracks, including on intrastate and interstate horse races, under simulcast wagering.
Sections 19 (a) and (d) of Article IV of the constitution contain the directive principles with regards to lottery. The Legislature has no power to authorize lotteries in the state as such. However, the California State Lottery was established in 1984 through a constitution amendment. The functioning of the California State Lottery is governed by the California State Lottery Act of 1984[O], which is Chapter 12.5 of Title 2 the Government code.
The California Lottery is run by an autonomous five-member commission. The Lottery Act limits the types of games that can be used. The present list includes a number of Draw games, Super Lotto Plus and Powerball. In 2005, California Lottery joined Mega Millions. The lottery returns 50% of the revenues as prizes, 34% is allocated to educational institutions and the remainder covers administrative expenses.
Under Penal Code Section 322, “every person who aids or assists, either by printing, writing, advertising, publishing, or otherwise in setting up, managing, or drawing any lottery, or in selling or disposing of any ticket, chance, or share therein, is guilty of a misdemeanor.”
Card clubs have to be registered with the Attorney General under the Gaming Registration Act. The laws governing the operations of card clubs are included in the Gambling Control Act, which is Chapter 5 of Division 8 of the Business and Professions code. The California Gambling Control commission is the regulatory authority. The card clubs can offer games that are not expressly prohibited under law. The prohibited games include banked or percentage games and gambling machines. Players can wager on poker in card clubs.
Sections 330 and 337 of the California Penal Code deal with violations of the Gambling Control Act. Violations are mostly defined as misdemeanors, but punishments depend upon the nature of violation and the repeated the nature of the offense. Punishments range from fines to imprisonment, or both.
Article 17 of the Gambling Control Act deals with nonprofit organization fundraisers for charitable gambling. Clause 19885 (b) states, “The playing of controlled games for the purpose of raising funds by nonprofit organizations is in the public interest.” Section 337j (e) of the Penal Code includes in controlled games “any poker or Pai Gow game, and any other game played with cards or tiles, or both”. Though bingo does not fall under “controlled game”, Section 19 (c) of Article IV of the constitution specifically allows bingo only for charitable purposes.
Owing to a recent change in federal law, cruise ships can call at consecutive California ports and allow gambling.
The state of California has entered into a separate compact with the each of the tribal nations. Hence, these compacts are not like uniform statutes covering all the casinos operated by the Indian tribes. The broad details are available at the CNIGA website[P]. Each compact with a tribe spells out the games that can be offered by that tribe, the maximum number of slot machines or tables that are allowed, the revenues that must be paid to the state, how much money has to be paid to tribes without casinos and what services like education, health and police the tribes have to provide on their own lands. Tribal casinos generated $7.8 billion to the economy in 2014, the latest numbers available, and support over 63,000 jobs per a report from the California Nations Indian Gaming Association.
Online Poker Legal California
Author:Joseph Falchetti (twitter)
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