Published in cooperation between PRInfinimedia and the Morgan Hill Times
Gambling has always been a contentious issue in California. The casino industry generates billions of dollars each year and provides thousands of jobs; however, gambling operations are restricted to tribal casinos, cardrooms and the lottery. The American Gaming Association reports that the state’s tribal casinos generate around $20 billion each year and contribute $5.8 billion in tax revenue.
Tribal casinos provide the full casino experience, including slot machines, table games and live dealer experiences. Tribes are allowed to operate the casinos on tribal lands, and revenue is used to fund healthcare, education and local community projects. Card rooms are different from tribal casinos as they’re not allowed to offer slots or house-banked games. Players can wager against one another, but not against the house.
Despite this thriving industry, there are still large areas of California that do not have convenient access to a regulated physical casino. For residents of Morgan Hill, the nearest tribal casinos are Casino San Pablo (74 miles) and Table Mountain Casino (132 miles). Gambling enthusiasts in the state are therefore hoping for the legalization of online casinos to make gambling more accessible throughout California.
Real-money gambling in the US is widely available via casino sites through reputable offshore casino platforms, in addition to the several states where online gambling is legal. Anyone in the United States can enjoy gambling gameplay at any of these casinos, depositing, withdrawing and betting via multiple payment methods, to access large bonuses and game libraries.
The past few years have seen several drives to legalize online gambling and sports betting in California, but with little success. Proponents introduced proposals in 2023 that sought to legalize online and in-person sports betting, which would provide tribes with the rights to operate online sportsbooks. However, these proposals were withdrawn in 2024 due to a lack of support.
Two proposals were also introduced in 2022, Prop 26 and Prop 27. Prop 26 aimed to legalize sports betting and dice games at tribal territories. Prop 27 was aimed at legalizing online betting and introducing casino games at card rooms. The initiatives were not accepted.
The tribal casinos are opposing any initiatives to legalize online gambling, and any efforts will continue to struggle to move ahead without tribal support. It therefore seems highly unlikely that California gamblers are going to enjoy legal online gambling anytime soon.
California lawmakers should look to other states where iGaming has been legalized to see the financial benefits. Gamblers are currently betting and gambling on sites outside of the state, and legalization will result in this revenue flowing into the state’s coffers instead.
Online gambling will also result in more jobs, while supporting the growth of the land-based tribal casinos. Tribes fear that there will be cannibalization, where online sites will replace physical casinos, however, the opposite has been proven to be true.
The most likely route towards legalization would be if a revenue-sharing model is implemented that protects tribal interests. However, this is unlikely to happen overnight, and negotiations will take years until all parties are satisfied.
Online casinos are not going to be legalized anytime soon, as past efforts have shown. The road towards legalization will have to be driven by the tribes. If the resistance to the 2024 online sports betting proposal is any indication, state legislators pushing for iGaming legalization will have an uphill, drawn out battle ahead. Only one thing is a certainty at the moment: Online gambling in California will be legalized once the state tribes and gambling operators can reach a beneficial compromise.
