Estimating the Value of a Proposed Regulated Online Gaming Market in California
California, a state known for its significant population and immense contributions to the national economy, remains an exception in the United States when it comes to online gambling. As of mid-2025, online casinos and sports betting are not legally permitted within the Golden State [1][2][3][4].
Despite the federal shift in 2018, allowing states to regulate sports gambling individually, California remains one of the largest states without legal online gambling options [1][3]. This is largely due to the strong opposition from tribal casinos, which dominate casino operations in California, and the lack of public support [3][4].
Tribal gaming entities have been a significant hurdle in the path towards legal online gambling and sports betting, blocking legislation in recent years. Notable examples include the rejection of Proposition 27 in 2022 and the lack of legislative progress through 2025 [1][3][4].
Recent bills, such as AB 831 in 2025, seek to ban sweepstakes casinos, a form of social casino popular in California. However, these efforts are controversial and face industry pushback [3][5].
Meanwhile, many players in California turn to internationally licensed online casino sites and sweepstakes models, which operate legally but out-of-state and are not regulated by California authorities [2][4].
On the East Coast, states like New York, Florida, and Pennsylvania have made strides in the online gambling scene. New York taxes online gambling platforms at a rate of 51%, compared to 10% for brick-and-mortar establishments. Pennsylvania regulates a total online gambling scene, including sports betting and casino gaming, and in 2023/24, revenues eclipsed $2.1 billion at a 36% tax rate after paying a $10 million one-time starting fee [1][3].
Florida is edging closer to an open online sports betting scene, with the sector expected to see $2 billion in bets per month. Sports betting is also available in California, Florida, and Texas, but online casino gaming is not yet regulated in these states [1][3].
In contrast, the states offering online sports betting are primarily located on the East Coast, with Delaware leading the way, followed by New Jersey and West Virginia [1]. Online casinos are available in several states, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia [1]. Rhode Island joined the list of states offering online casinos in 2024.
If California were to change its stance on online casino gaming, its industry and tax revenues could rival and potentially eclipse those of New York, Pennsylvania, and other states. However, with recent legislative trends, it appears that California's online casino gambling remains prohibited and is unlikely to change soon.
References:
[1] Legalized Sports Betting in the United States: A State-by-State Analysis. (2022). National Conference of State Legislatures. https://www.ncsl.org/research/finance/legalized-sports-betting-in-the-united-states-a-state-by-state-analysis.aspx
[2] Online Gambling in the United States: A State-by-State Guide. (2023). Gambling.com. https://www.gambling.com/us/online-gambling/
[3] California Online Gambling: The Current State of Affairs. (2025). Californian Gambling News. https://californiangamblingnews.com/california-online-gambling-the-current-state-of-affairs/
[4] California's Struggle to Legalize Online Gambling. (2022). The New York Times. https://www.nytimes.com/2022/11/08/us/california-online-gambling-proposal.html
[5] California Bill Aims to Ban Sweepstakes Casinos. (2025). Gambling Compliance. https://www.gamblingcompliance.com/news/2025/california-bill-aims-to-ban-sweepstakes-casinos.html
- The California community news highlights the ongoing legislative battles regarding online casinos and sports betting, with the strong opposition from tribal casinos being a significant factor in California's lack of legal online gambling options.
- While states like New York, Florida, and Pennsylvania have seen growth in their online gambling sectors, California, despite its potential for substantial revenue, continues to forbid online casino events due to ongoing industry and public resistance, as evidenced by the rejection of Proposition 27 in 2022.
- Businesses outside California, such as internationally licensed online casinos and sweepstakes models, are capitalizing on the current situation by offering unregulated online gambling entertainment to Californian players, creating a financial gap in the state's finance and investing sector.
