Discover what iGaming’s future in California could look like, including the potential impact of legalizing online betting and casino games across the state.
As one of the most populous and economically powerful states in the U.S., California represents a massive untapped market for online gambling or iGaming. While several states have already embraced regulated online casinos and sports betting, California has yet to join them. The future of iGaming in California holds promise and complexity, driven by legal, political, economic, and technological factors.
California’s Gambling Landscape Today
California currently permits various forms of gambling, including:
- Tribal Casinos
- Card Rooms
- State Lottery
- Parimutuel Horse Racing Betting
However, online casino games remain illegal. While daily fantasy sports operate in a legal grey area, most forms of iGaming, such as poker and online slot machines, have not yet been officially regulated. Sports betting initiatives have been proposed multiple times but have unfortunately failed due to the following factors:
- Political Infighting
- Voter Confusion
- Opposition from Key Stakeholders
Why California Hasn’t Legalized iGaming Yet
Several barriers have prevented California from passing the iGaming legislation, including:
1. Tribal Sovereignty & Influence
Native American tribes have exclusive rights to operate full-scale casinos in California. Many tribes oppose iGaming because:
- They fear it could reduce revenue from land-based casinos.
- They want to retain control over any potential online gaming industry.
2. Disagreement Among Stakeholders
Various interest groups, including the following listed below, have competing agendas. Reaching a consensus on who would control and profit from iGaming has been difficult.
- Card Rooms
- Horse Racing Tracks
- Tech Companies
- Tribal Operators
3. Voter Confusion & Failed Ballot Measures
In 2022, two competing sports betting propositions, Prop 26 and Prop 27, were voted down. Voters were overwhelmed by conflicting messages and record-breaking ad campaigns totaling over $500 million. This barrage of messaging has made future campaigns even more challenging.
What Legalization Could Mean for California
If California legalizes iGaming in the coming years, the impact would be significant in multiple areas, such as:
1. Economic Growth & Tax Revenue
California is home to nearly 40 million people. If even a fraction of residents began participating in iGaming:
- The market could generate billions in annual revenue.
- State and local governments could benefit from hundreds of millions in tax revenue, which would support public services such as education and infrastructure.
States like New Jersey and Pennsylvania have shown that a regulated iGaming market can be profitable and manageable.
2. Consumer Protection & Regulation
Legalization would illuminate an industry operating in the shadows through offshore and unlicensed sites. A regulated market would:
- Provide consumer protections (responsible gaming tools, age verification, data security)
- Ensure fairness through licensing and auditing requirements
- Offer legal recourse for player disputes
3. Job Creation & Technological Investment
A legal iGaming industry could create thousands of jobs in different departments, such as:
- Tech Development
- Customer Support
- Compliance and Regulation
- Marketing and Content Creation
Silicon Valley’s proximity could further encourage innovation in gaming platforms, payment tech, and user experience design.
Key Gambling Opportunities: From Online Poker to Mobile Sports Betting
Should California legalize iGaming, it’s likely to start with online poker or mobile sports betting areas. The reason is that these categories have the most public support and legal precedent.
Online Poker
California has a long-standing poker culture and is home to some of the largest card rooms in the country. A regulated online poker market could:
- Attract recreational and professional players
- Enable liquidity sharing with other states (via interstate compacts)
- Reignite interest in the poker boom of the early 2000s
Mobile Sports Betting
Given the success of legal sports betting in states like New York and Michigan, California is seen as the crown jewel for sportsbook operators. If legalized:
- Mobile apps would dominate the market
- Live betting and same-game parlays would likely drive revenue
- Partnerships with sports teams and media outlets could boost engagement
The Role of Federal & Technological Trends
Although gambling is regulated at the state level, federal laws such as the Wire Act and Unlawful Internet Gambling Enforcement Act (UIGEA) play an important role and influence the legal framework for iGaming.
Meanwhile, outstanding tech advancements are reshaping how people interact with online casino gambling games and online sports betting platforms. With its tech-forward economy, California is well-positioned to lead in these innovations if regulation permits. Here is a list of the latest technology trends and advancements in the iGaming sector:
- Blockchain and Cryptocurrency
- Digital Identity Verification
- Cashless Payments
- Virtual Reality (VR)
- Augmented Reality (AR)
- Artificial Intelligence (AI)
What to Expect Next
While 2025 may be too soon for full-scale iGaming legalization in California, signs point to progress:
- Lawmakers are in ongoing discussions with tribal leaders
- Polls suggest growing public interest in regulated online betting
- Several operators are preparing platforms in anticipation of future approval
Expect further ballot initiatives, tribal negotiations, and possibly new legislation over the next few years. If a coalition can be formed that benefits all key players, tribes, bettors, and the state, legal iGaming in California could become a reality before the end of the decade.
