As a technology-driven sector, innovations in online gaming have significantly contributed to the United States economy. Data from the American Gaming Association indicates that licensed operators generated a combined $22.1 billion in economic output in 2024, a portion of which benefits state governments through tax revenues.
However, since state regulations regarding online gaming vary widely, California remains one of the few states where the highly profitable sector is not legalized. This holdout means California misses out on key online gaming segments like sports betting, which recorded $149.6 billion in wagers in 2024 alone.
Despite California’s large population making sports betting profitable, the state has resisted commercial operators like FanDuel, which has been eyeing it as a critical market for expansion with a $70 billion investment. Lawmakers have also introduced several bills to legalize online gaming, but legislative hurdles remain, contributing to the rise of alternative gaming operations.
The regulatory context for online gaming in California
Efforts to legalize online gaming in California have been underway for years, with Proposition 27 being the most notable development. In 2022, FanDuel, DraftKings, and BetMGM, the biggest online gaming brands in the US, allied for a ballot initiative to legalize online sports betting in California.
Also known as the Legalize Sports Betting and Revenue for Homelessness Prevention Fund Initiative, the proposition faced strong opposition from Native American tribes, who would have given up their exclusive gaming rights if it passed. Thus, tribal casinos launched ad campaigns to block Prop 27 and maintain their share of the state’s total gaming revenues.
Both major parties in California also opposed the measure, which lost by a margin of 83.4% to 16.6%. Despite this resounding legal defeat, online gaming operators have recently initiated another round of negotiations with casino-owning tribes. Amid the tribes’ legal battle against private card rooms in California, online wagering giants like FanDuel have presented themselves as allies, acknowledging that their goal of legalization will require the tribes’ ongoing support and approval.
Since these negotiations are still pending, alternatives for leading online gaming segments like casino games and sports betting have emerged, allowing Californians to take part in the growing sector.
Alternatives for online poker and sports betting emerge
Because online wagering has yet to be fully legalized in California, residents are presented with alternatives in the form of offshore gaming sites for top casino games like poker. As a leading online poker site in the US, Americas Cardroom has established itself as a safe option for online players in California. Even without regulatory oversight from the state government, the poker site maintains integrity and fairness for all players, including Californians, through its responsible gaming policies.
When using the client software, players can apply Game Restrictions to limit tournament buy-ins and set stop losses, ultimately managing their spending behaviors. Americas Cardroom also implements the self-exclusion feature, which enables players to temporarily or permanently disable their online poker accounts to maintain their well-being.
Online wagering alternatives are also especially important for Californians invested in the state’s thriving sports scene. Among the top sports teams in California is the Los Angeles Lakers, which has won 17 championships in the National Basketball Association (NBA). In addition to Lakers legends like Pat Riley being honored with a statue at Crypto.com Arena, the basketball team’s recent achievements include attracting the highest betting interest in the 2025 NBA playoffs series.
Sports betting giant BetMGM reports that 99% of the bets in the opening round between the Minnesota Clippers and the LA Lakers are on LA, making them a -200 favorite at BetMGM. Caesars Sportsbook notes the same trend of high wagers on the Lakers. Both sportsbooks have established shares in the US sports wagering market, and they present themselves as viable alternatives due to the wide range of betting lines they offer, including the NBA, which is popular among Californians.
Beyond their offshore operations and diverse betting markets, these online gaming alternatives support various payment methods available to Californians, including online banking, electronic wallets, and cryptocurrencies. However, to maintain their unique position in California, online gaming operators must build and maintain relationships with tribal casinos, which dominate the state’s overall gaming sector. Continue reading Yo! Venice for more local news, opinions, and features.
