Published in cooperation between casino.org and Good Times Santa Cruz
Online gambling is currently illegal in California as of April 2025, and the wide-ranging state ban includes all online sportsbooks and casino sites. However, the broader national picture for iGaming in the United States has witnessed significant landmark changes in recent years, causing many industry experts to speculate about when certain states might move to introduce more permissive online gambling legislation. Despite some failed efforts to legalize gambling activities in California, the state still appears a long way away from making any notable changes to its heavily restrictive legal framework. In this article, we’ve examined if and when we might expect online gambling to be legalized in the Golden State.
The Role of the California Electorate
In November 2022, two key ballots indicated the largely anti-gambling stance of much of the California electorate, as the majority of voters rejected two major propositions aimed at legalizing sports betting activities. Following on from the landmark Supreme Court decision to remove the federal sports betting ban in 2018, legislators and industry leaders in many U.S.states began to explore the new possibilities for opening up their own legal and regulated markets. In California, Proposition 26 aimed to legalize in-person sports betting at tribal casinos and racing tracks, while Proposition 27 was backed by major online gaming companies aiming to legalize online sports betting sites in the state. Both initiatives were overwhelmingly rejected by the electorate, with Prop. 27 receiving a particularly large opposition from 82.28 percent of voters, making it one of the largest margins of defeat for any proposition in history. Â
This fascinating moment in Californian voting history revealed many interesting elements of public opinion in the state. Many voters indicated concerns about youth exposure to online gambling, suggesting that tighter and clearer regulatory frameworks may need to be put forward in order to gain the support and trust of the electorate. Alongside this, many voters in California are supportive of Native American tribal interests in the state, meaning that they followed the lead of the tribes who voted against Prop. 27. Instead of welcoming major companies with open arms, some Californians may have felt that local interests would not be prioritized by these larger iGaming businesses. Clearly, there are many reservations among voters here about the expansion of online gambling activities, which will undoubtedly take some time to evolve. The result of both ballots also highlighted the significant influence of tribal gaming throughout the state, as its leadership will clearly be instrumental in any future decision-making about online gambling law.
The Future of Gambling Legislation in California
The current landscape in California remains the same, with a highly restrictive approach to all forms of gambling. However, despite the significant blow to progress in 2022, there have since been renewed discussions between tribal leaders and major gaming companies about a changing future for legalization in the state. Since tribal casinos in the area are exempt from prohibitive law, they currently dominate California’s brick-and-mortar gambling industry, typically generating over $8 billion USD in annual gaming revenue. During the events of 2022, it undoubtedly became clear that the tribes must also lead the way forward for online gambling. To acknowledge this, in a recent appearance at the annual Indian Gaming Tradeshow and Convention, DraftKings CEO Jason Robins and FanDuel President Christian Genetski recognized the importance of tribal partnerships and outlined their hopes for a more constructive, collaborative future.
Evidently, any possible future changes to gambling legislation in the Golden State will need to be agreed upon in collaboration between legislators, iGaming operators and the 109 recognized tribes in the state today. This poses a significant challenge for those seeking to open up a more permissive legal framework in the state and certainly means that many years of debate and conversation will need to take place before we are to see any significant movements. The introduction of new laws in California regarding sports betting and online casino gaming will therefore take at least a few years to materialize, with some experts stating that 2028 is the most likely current target for any significant changes to take place. Ultimately, learning from the failures of previous propositions will be the most vital task for those pushing for change.
While the current situation in California is clearly complicated, there are, of course, many groups within the state who do support the opening of a legal and regulated online gambling market. With many American iGaming fans now regularly checking casino promo codes and enjoying online casino games in states like New Jersey and Michigan, many California gamers will undoubtedly be keen to follow suit as soon as possible. And having witnessed the massive revenue generated by these new domestic online casino markets, many leading government officials and gaming industry experts are keen to bring about the enormous economic uplift that legalization can generate. Total iGaming revenue in New Jersey hit a record $243.9 billion USD in March 2025, demonstrating that the Golden State’s economy could clearly receive a similarly significant boost if it loosens its legislation.
Ultimately, due to the state’s complex political landscape, any notable changes to online gambling legislation in California will undoubtedly be at least a few more years away. Changemakers must navigate the powerful influence of tribes in the area, as well as the cautious outlook of the electorate, which indicates that wide-ranging conversations between all stakeholders will need to take place before we see any meaningful action. Despite this, some industry experts are cautiously optimistic about the likelihood of a more permissive future for iGaming in California. As the national legislative landscape continues to change at a dramatic pace, the United States is certainly becoming more open to online casino and sports betting activity, with the generation of significant tax revenue offering a clear incentive for many state governments. With American citizens demonstrating increasing demand for casual gaming and wagering opportunities, it is certainly possible that California could legalize online gambling within the next decade. Whatever happens, it will be fascinating to watch the negotiations unfold.
