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The Rise of Legalized Online Casinos

By California Business Journal Editorial Staff

Recognized as one of the most liberal states in the US, California seems to legalize just about anything. But like all things, there’s always a start to how it came to be. Once upon a time, California did not allow gamblers to use online casinos. This has changed, but it’s important to understand how this all began.

California’s Gambling History

You need to understand that the word “casino” is defined differently in California than it is when you’re thinking about Las Vegas casinos. They won’t be as glitzy and glamorous, but they get the job done.

“Vegas-style” casinos have yet to become legal in the state of California. Although similar casinos are allowed under Native-American land, as they have the power to regulate those casinos as they wish. These casinos have benefitted Indian tribes and have contributed immensely to their revenue since they’ve welcomed casinos.

Gamblers can find, though, what is considered “card rooms” elsewhere across California. These are often advertised as casinos, so it’s important to know what you’re getting yourself into before stepping in. Here there are options for games based on traditional casino card games but, don’t expect to find slots or real tables games.

So, why are these legal? The state recognizes these as games of skill rather than games of chance, which are still illegal.

But there’s a loophole.

In terms of California online casinos, it’s different. When a law is written, it needs to be strictly specific. Nowhere in California law is it stated that online casinos are illegal. Meaning, residents of California are free to play online casino games since there isn’t a place stating that they can’t.

State Revenue Continues to Rise

Currently, the annual gambling revenue for the state of California is estimated to be around $7 billion. With a notable number like that, it’s no surprise that California has been benefiting from gaming. In taxes alone, California is receiving around $1.4 billion yearly.

All things considered, as the casino market continues to grow, so will these numbers.

Popularity Among Online Casinos

Since brick and mortar casinos in California are still a gray area, online casinos are the best alternative to receive big payouts like players look for in Vegas. Some sites even offer loyalty programs that could potentially earn you some nice comps.

Online casinos offer poker games, roulette, and slot machine games, which are still banned throughout parts of California.

So in reality, online casinos are better than physical casinos. Less driving, with all the benefits of gaming that players look for.