California is the third largest state in the US, but by far the most populated with approximately 38,340,000 (est. 2013) residents. It was a molten hotbed of online poker activity before the result of Black Friday in 2011, and while many Californians continue to access international poker sites, the legalities of doing so have come into question more times than Andy Rooney appeared on 60 Minutes. The aim of this article is to decrypt the current laws of the state and conclude whether online poker in California is legal, illegal or somewhere in between.
Land-based Gambling in California
By looking at the current climate of land-based gambling in a particular location, we can often gather information as to the state’s legislative acquiescence towards internet wagering. Gambling is already big business in the Golden State. There are approximately 150 gambling destinations in California, more than three dozen of which offer Texas Holdem poker tables. With almost 60% of all gambling establishments being commercially owned (the rest being tribal casinos), it’s obvious the state has no quarrel with filling its tax coffers by way of gambling revenue to the tune of $100,000,000+ per year.
However, it’s a known fact that California does not yet have a regulated online poker market. In fact, lawmakers have been debating the passage of an internet poker bill for the last 7 years, long before the US Department of Justice declared the rights of individual states to legalize and regulate certain forms of online gambling. With no such bill making it to the governor’s desk, we already know the activity won’t fall into the category of “legal”. But that alone doesn’t make it illegal, either.
Deciphering the Laws of California as they relate to Online Poker
There is relevant no mention of online or internet based poker games in the California Penal Code, Part 1, Title 9, Chapter 10: Gaming. However, certain issues, like operating without a state or federally granted license, are addressed. The following is a copy of specific laws that could be construed to encompass the topic of online poker in California, followed by their logical meanings.
| Section | Text | Meaning (in re online poker) |
| Penal Code 1-9-10-330 | Every person who deals, plays, or carries on… 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. | These forms of gambling are illegal in California and cannot be offered even by licensed casinos. Poker is not among them (see Penal Code 1-9-10-33.11 below) |
| Penal Code 1-9-10-330.11 | “Banking game” or “banked game” does not include a controlled game if the published rules of the game feature a player-dealer position and provide that this position must be continuously and systematically rotated amongst each of the participants during the play of the game, ensure that the player-dealer is able to win or lose only a fixed and limited wager during the play of the game, and preclude the house, another entity, a player, or an observer from maintaining or operating as a bank during the course of the game… The house shall not occupy the player-dealer position. | Poker games are legal so long as there is no “bank” and players take turns being in the dealer position. Only Fixed Limit poker games are legal. No Limit and Pot Limit games are not legal. |
| Penal Code 1-9-10-337j | (a) It is unlawful for any person, as owner, lessee, or employee, whether for hire or not, either solely or in conjunction with others, to do any of the following without having first procured and thereafter maintained in effect all federal, state, and local licenses required by law: | The following conduct is prohibited by California law: |
| (1) To deal, operate, carry on, conduct, maintain, or expose for play in this state any controlled game. | Controlled games are those authorized by the state. Thus Fixed Limit online poker games are illegal unless regulated/licensed by California. | |
| (b) It is unlawful for any person to knowingly permit any controlled game to be conducted, operated, dealt, or carried on in any house or building or other premises that he or she owns or leases, in whole or in part, if that activity is undertaken by a person who is not licensed as required by state law, or by an employee of that person. | If online poker is being played in any location, and the owner/lessee of that location knows about it, they are committing a crime. Thus playing online poker for real money in your own home is illegal. | |
| (d) Any person who violates, attempts to violate, or conspires to violate this section shall be punished by imprisonment in a county jail for not more than one year or by a fine of not more than ten thousand dollars ($10,000), or by both… A second offense…is punishable by imprisonment…not more than one year…or by a fine of not more than ten thousand dollars ($10,000), or by both… | Illegal online poker operators and even players could face up to $10k fine and/or up to 1 year in jail. | |
| (e) (1) As used in this section, “controlled game” means any poker or Pai Gow game, and any other game played with cards or tiles, or both, and approved by the Department of Justice, and any game of chance, including any gambling device, played for currency, check, credit, or any other thing of value that is not prohibited and made unlawful by statute or local ordinance.
(2) As used in this section, “controlled game” does not include any of the following… (D) Games played with cards in private homes or residences, in which no person makes money for operating the game, except as a player. |
Poker is a controlled game, but social poker games played in a person’s private residence are legal so long as no one except the players, via personal gambling winnings, makes a profit. Thus online poker is still illegal when played in a private home if a rake/fee is taken. |
Is Online Poker Illegal in California?
In short, yes. It is illegal for an online poker site located outside the state, or not regulated and licensed by the state, to offer its services to California residents. Due to the precise verbiage of paragraph 337j, any person who violates that section is subject to a hefty criminal penalty, and that section prohibits any “person to knowingly permit any controlled game to be conducted, operated, dealt, or carried on in any house or building or other premises that he or she owns or leases’. Thus just playing online poker in your place of residence could be considered a crime. Technically speaking, playing in another person’s home or some other location might instead put the owner of that place at risk, so long as they knew you were doing it.
Is California working to Legalize Online Poker?
Yes. California has been working to regulate online poker longer than any other US state; since 2007, in fact. The problem is that legislators and potential operators can’t seem to agree on the best way to regulate the industry – whether horse racing tracks should participate; who is eligible for a license; how many sites one operator can launch; whether online poker should be intrastate only or allowed to expand via shared liquidity with other state; etc., etc., etc.
There are two online poker bills orbiting California at the moment, both introduced in February of this year and both under the same title; The Internet Poker Consumer Protection Act of 2014. Senator Lou Correa shelved his version on August 6, stating there isn’t enough time to refine the bill before the legislative session ends. Assemblyman Reginald Jones-Sawyer’s version of the bill is still open for debate, but time is running short. Once more, it appears California will have to wait another year before online poker can be legalized.
Online Poker Players from California
There are many professional online poker players hailing from California. The three most recognizable are:
Phil “Polarizing” Ivey – 10x WSOP bracelet winner
Daniel “FakeSky” Alaei – 4x WOSP bracelet winner
Russell “Dutch” Boyd – 3x WSOP bracelet winner
Land-Based Card Rooms in California
California is brimming with tribal and commercial casino operations, as well as horse racing tracks. There are near 150 in all. Those listed below are the ones that conduct real money Texas Holdem poker games.
Agua Caliente Casino Resort
Location: Rancho Mirage, CA
Poker Room: Yes
Artichoke Joe’s Casino
Location: San Bruno, CA
Poker Room: Yes
Bruce’s Bar and Casino
Location: Blythe, CA
Poker Room: Yes
California Grand
Location: Pacheco, CA
Poker Room: Yes
Cameo Club
Location: Stockton, CA
Poker Room: Yes
Capitol Casino
Location: Sacramento, CA
Poker Room: Yes
Caps Saloon
Location: Salinas, CA
Poker Room: Yes
Casino Pauma
Location: Pauma Valley, CA
Poker Room: Yes
Central Coast Casino
Location: Grover Beach, CA
Poker Room: Yes
Comstock Card Room
Location: Tracy, CA
Poker Room: Yes
Dealer’s Choice Card Room
Location: Auburn, CA
Poker Room: Yes
Diamond Jim’s Casino
Location: Rosamond, CA
Poker Room: Yes
Garlic City Club
Location: Gilroy, CA
Poker Room: Yes
Gold Rush Gaming Emporium
Location: Grass Valley, CA
Poker Room: Yes
Hemphill’s Card Room
Location: Napa, CA
Poker Room: Yes
Hollywood Park Casino
Location: Inglewood, CA
Poker Room: Yes
Jackson Rancheria Casino Resort
Location: Jackson, CA
Poker Room: Yes
Kelly’s Cardroom
Location: Antioch, CA
Poker Room: Yes
Livermore Casino
Location: Livermore, CA
Poker Room: Yes
Lucky Buck Card Club
Location: Livermore, CA
Poker Room: Yes
Lucky Chances Casino
Location: Colma, CA
Poker Room: Yes
Lucky Lady Card Room
Location: San Diego, CA
Poker Room: Yes
Marina Club Casino
Location: Marina, CA
Poker Room: Yes
Mike’s Card Casino
Location: Oakdale, CA
Poker Room: Yes
Mortimer’s Card Room
Location: Marina, CA
Poker Room: Yes
Napa Valley Casino
Location: American Canyon, CA
Poker Room: Yes
Oaks Card Club
Location: Emeryville, CA
Poker Room: Yes
Palomar Card Club
Location: San Diego, CA
Poker Room: Yes
Phoenix Lounge
Location: Citrus Heights, CA
Poker Room: Yes
Rancho’s Club
Location: Rancho Cordova, CA
Poker Room: Yes
San Manuel Indian Bingo and Casino
Location: Highland, CA
Poker Room: Yes
Silver Fox Card Room
Location: Sacramento, CA
Poker Room: Yes
Stone’s Gambling Hall
Location: Citrus Heights, CA
Poker Room: Yes
Table Mountain Casino & Bingo
Location: Friant, CA
Poker Room: Yes
Trump 29 Casino
Location: Coachella, CA
Poker Room: Yes
Viejas Casino & Resort
Location: Alpine, CA
Poker Room: Yes
Win-River Casino
Location: Redding, CA
Poker Room: Yes