Have you ever heard of card rooms; state-run lotteries? Have you ever wondered whether California considers horse race wagering legal? This article will provide an overview of existing gambling regulations.
Though there is no certain definition for gambling under California State Law, the practice shows that the following elements shall be present to qualify the actions as gambling:
The California State Constitution considers gambling illegal in California. However, some types of gambling are exceptions to the general rule. Particularly, California law permits:
The main legislative act regulating gambling in California is called Gambling Control Act. This act sets out the relevant licensing terms for the entities, which are involved in the gambling market. California Gambling Control Commission issues particular regulations for gaming licenses. Besides, it also issues licenses to owners, supervisors, players, and employees of gambling institutions. It is considered that licenses shall be renewed bi-annually and they may not be assigned or transferred in whole or in part under California Business and Profession Code. This means that a separate application for receiving a license must be submitted for there to be a change in corporate control of the licensed entity. California allows tribal casinos, and the state and the tribe negotiate their regulations. The regulations will cover revenue sharing details, licensing terms, and other related matters.
Horse wagering, including pari-mutuel wagering, falls under California Horse Racing Law and the California Business and Professions Code. The Californian Lottery runs the only authorized lottery in the state of California.
Under Penal Code 330 PC it is a misdemeanor offense to:
The minimum age to gamble in California is 18 years, though some casinos have a minimum age of entry which is 21 years.
California does not separately regulate online gambling. Thus, there is no special licensing regime for online gambling.
Businesses and individuals engaged in gambling activities in California are subject to strict state regulation. The California Gambling Control Commission has the authority to impose administrative sanctions for violations of the Gambling Control Act. Such sanctions include:
Liability applies to both licensees and employees of gambling establishments. Individuals involved in illegal gambling activities may also be subject to criminal penalties. Under California Penal Code Section 330 PC, it is a misdemeanor to:
This offense is classified as a misdemeanor and may result in a fine, arrest, or other sanction as determined by the court.
It is also important to note that third parties, including landlords who provide the premises, can be held liable. The California Business and Professions Code considers advertising illegal gambling a misdemeanor. While advertising for legal gambling activities is not prohibited, it must comply with general advertising requirements. These include a prohibition against misleading information. Authorities may impose fines and take civil action if parties fail to meet these standards.
The California Gambling Control Commission, Horse Racing Board, and Lottery Commission have not issued separate acts regarding gambling advertisements. Thus, the California Business and Professions Code regulates gambling advertisements under its general advertising regime. If you or a loved one would like more information on California wagering and gambling laws we invite you to contact KAASS LAW (310) 943-1171 today. The sooner you come forward, the better chance you have of successfully resolving your case.
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Penal Code section 330 outlines the crime of “gaming,” or illegal gambling. It states that, “Every person who deals, plays, or carries on…any banking or percentage game played with cards, dice, or any device, for money, and every person who plays or bets at or against any of those prohibited games, is guilty of a misdemeanor.”
Gaming refers to the act of gambling illegally. It is a crime to participate in a game that involves gambling or to run a gambling operation in the state of California. For gambling to constitute a crime, you must have illegally participated in some way, and the game itself must have violated the law. You do not necessarily have to play in the illegal game in order to be charged with a PC 330 violation. The law specifies that it is illegal to deal, play, run, or oversee a gambling operation. This means that participating in gaming is not only illegal but if you conduct an illegal gambling operation on your property and collect some of the profit, you are guilty of a gaming crime. The other requirement is that the game in question must be a “prohibited game” under California law. This means that the game involves a bank, house, or dealer that collects money from losers and gives it to the winners and/or itself. There are 2 main categories this creates: “banking” and “percentage” games. Banking games involve a 3rd party “bank” that distributes money from the loser to the winners. A percentage game means that the bank collects a percentage of the winnings or the total amount of bets.
Gaming is considered a misdemeanor crime in the state of California. The punishments for gaming may include up to 6 months in a county jail or a fine ranging from $100 to $1,000. Given that it is only a misdemeanor offense, a judge may choose to waive jail time and opt for probation instead.
There are quite a few legitimate defenses if you are accused of violating PC 330. Some of these are:
If you can prove that you did not participate in the game in question in a way that constitutes illegal activity, then you will successfully defend yourself against this charge. For example, say you own a club and some patrons start independently playing a game of poker. Even though it happened in your establishment, you did not collect any winnings from anyone nor permit the game to be played. This would be a legitimate defense against a gaming violation. You can also prove that the game was not prohibited, meaning that it was not a banking or percentage game. You could show that the game didn’t involve money at all, or if it did, there was no house that collected a part of the earnings. Lastly, there are a couple of exceptions to California gaming laws, most notably charitable games. Penal code section 326.5 specifies that bingo games held by certain charitable organizations are legal.