Published in cooperation between Cardstudios and The Pajaronian
California is home to one of the biggest gambling markets in America, attracting both players and investors from across theUnited States. However, it remains one of the most regulated markets as strict regulations and gaming tribes control how the market moves. The tussle for power between operators and gaming tribes has left many questions unanswered despite recent developments in the gambling industry.
One of the biggest shocks so far is the fact that the Golden State hasn’t legalized online sports betting. While sports betting is growing across other American states, California has yet to legalize it despite many calls for the government to reconsider. This hasn’t stopped citizens from visiting offshore casinos that allow for sports betting and online casino gaming. Some of them are budget-friendly, allowing players to play games with as low as $20 while also enjoying benefits like sign-up bonuses, free bets and loyalty programs for returning customers. (Source: cardplayer.com).
Many popular sportsbook operators want to move into the California gaming market, but gaming tribes pose a huge problem as they push to keep their exclusivity and all the gaming revenues from their respective communities. Currently, there is a debate between the Coalition for Fantasy Sports and the California Nations Indian Gaming Association (CNIGA) on who should promote daily fantasy sports (DFS).
The coalition, which represents companies like FanDuel and Underdog, argues that DFS is a game of skill as players are drafting mini fantasy leagues and betting on the players’ match performances, which do not break state laws.
The CNIGA, on the other hand, believes that DFS is just another form of sports betting, and if California citizens should play DFS, gaming tribes should be the ones to offer it.
As both parties argue their claims, California’s Attorney General, Rob Bonta, has weighed in, legally putting an end to the debate. In a recent statement, Bonta opined that under existing state law, all DFS contests are seen as illegal. This ruling has now put an end to another move by independent operators hoping to cajole the government into legalizing sports betting.
The only way out is for both parties to explore a hybrid model where gaming tribes partner with a few companies or hope that a new government will change the rules.
In another move, lawmakers in California are pushing to ban sweepstakes casinos. Assembly Bill 831, which was introduced by Assemblyman Avelino Valencia and sponsored by some of the most powerful gaming tribes in California, is designed not only to ban sweepstakes casinos or any online game where players can convert virtual coins into real money or prizes, but also to impose criminal penalties on anyone caught promoting these games.
The bill has now passed two lower committees and is headed for the Senate. However, not all the gaming tribes agree with the bill, as the Kletsel Economic Development Authority (KEDA) tribal group has stated that it doesn’t support it and believes that the bill should be called back for proper review.
KEDA has also signed a partnership with Virtual Gaming Worlds (VGW), a social games provider, to run online social games and sweepstakes casinos. This partnership shows that traditional gaming tribes and independent operators can work together to bring innovative gaming solutions to citizens, leading to the growth of the gambling industry.Economically, California’s gambling industry makes about $20 billion a year. It provides around 124,000 jobs and brings in about $3.45 billion in taxes. Most of this comes from tribal casinos, as online casinos and sports betting are still not allowed. New detailed numbers for mid-2025 are not yet out.
