State Guide

Is Online Gambling Legal in California

California doesn't permit online sports betting or casino gaming. The state has no licensed sportsbooks or casinos. DFS operates without state licenses, while prediction markets are regulated federally by the CFTC.

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Legal basis

Proposition 26 and Proposition 27 - rejected by voters.

California is one of the few US states where sports betting and online casinos are illegal. The state doesn’t run any sportsbooks or online casinos. Daily fantasy sports betting sites operate without a state law, while prediction markets are regulated on a federal level.

Over 80% of voters rejected Proposition 27 in late 2022. It was supposed to legalize some forms of online gambling, but the state’s residents were overwhelmingly against it.

Who Regulates Gambling in California

The Gambling Control Commission and the Bureau

The forms of gambling that are regulated in California are policed by the California Gambling Control Commission. This applies to third-party providers and licensed card rooms.

The Bureau of Gambling Control inside the Department of Justice handles investigation and enforcement of rules. An Attorney General’s office sits above it, which has issued the 2025 DFS opinion discussed above.

Tribal Gaming Agencies

Tribes that provide gaming service in California have gaming agencies that regulate operations. They fall under Class III compacts within the state.

Where to Get Help in California

California’s Office of Problem Gambling uses the 1-800-GAMBLER helpline for queries and professional help. It replaced the former 1-800-522-4700 line. Players can also text SUPPORT to 53342. See our responsible gambling resources for more information on how to prevent gambling problems.

Where to Bet in California

California Online Casinos

Illegal · 0+

Guide coming soon

California Sportsbooks

Illegal · 0+

Guide coming soon

California Daily Fantasy Sports

Available Without A State License · 18+

Guide coming soon

California Prediction Markets

Federally Regulated · 18+

Guide coming soon

The current legal status for online gambling in California is quite restricted. There aren’t many online operators with a licensed status until something changes in the near future.

DraftKings and FanDuel in California

Due to current California regulations, neither DraftKings or FanDuel are legal to offer online casino gaming or sports betting in the state.

Both operators run daily fantasy sports services, which is the only product that’s available in California, even if it does come without a governed law.

PrizePicks and Underdog in California

Following the Attorney General’s 2025 opinion, PrizePicks and Underdog changed the structure of their operations.

Underdog now operates Champions P2P contests, while PrizePicks switched to the Arena format. The restructured format is different from player vs. house contests.

Kalshi and Polymarket in California

Kalshi and Polymarket are regulated event-contract exchanges by the CFTC. They’re available in California under federal financial regulation rather than state gambling law.

In the state of California, Polymarket and Kalshi offer political and event contracts. These include California governor race markets, which are a distinct category different from any other.

To clear the Stake.us and sweepstakes casinos, both are banned in California effectively from January 1, 2026. The AB 831 bill prohibits social gaming platforms in the state, so sweepstakes casinos aren’t legal.

What Is Not Available

California’s state laws prohibit sportsbook, online casino, online poker, and sweepstakes platforms.

Tax on Gambling Winnings in California

California State Tax on Winnings

Unlike other states, California taxes gambling and contest winnings as ordinary income. The top marginal rate is 13.3%. It’s the highest in the US states.

An additional 1.1% state disability insurance rate applies to wages. It doesn’t raise the rate on winnings.

What You Still Owe Federally

Federal taxes may still apply in addition to the state rates. Operators available in California issue a W-2G above federal reporting thresholds. Keep in mind that this is just general information, and not tax advice.

General information only; not tax advice.

Pending California Gambling Legislation

The 2028 Ballot Initiative

At the moment, California doesn’t have an active sports betting bill. Per the CNIGA, tribes are preparing for a new initiative in 2028. It should cover in-person and online betting, but no measure has been filed as of September 2026.

A finalized list of tribal-operator deals is required before signature gathering can begin, and it’s scheduled for mid-2027.

The 2026 Sweepstakes Ban

In 2026, California banned sweepstakes casinos outright. It reaches operators, geolocation providers, payment processors, media affiliates, and content suppliers.

Fines are steep, ranging from $1,000-$25,000, and up to a year in a county jail.

The Daily Fantasy Sports Litigation

DFS markets are among the most interesting developments on the market. While currently not legal or illegal, a federal class action in California’s Northern District survived a motion to dismiss the hearing in mid-2026.

However, the injunction remains live. This isn’t a prediction, but a current status update.

Frequently asked questions

Is betting legal in California?

No, as California has never legalized online sports betting. In 2022, voters rejected Propositions 26 and 27. More than 80% of voters rejected Prop 27, and as a result, there’s no currently active bill on betting in California. Sportsbooks don’t hold Californian licenses as well. Tribes are preparing for a 2028 ballot initiative.

Is DraftKings legal in California?

DraftKings operates in California, but not all of its products are legal. Daily fantasy sports are allowed, but currently sit in a contested position. There are no laws for or against DFS, although the AG’s 2025 opinion says it’s illegal. DraftKings is continuing to dispute that.

Is Kalshi legal in California?

Kalshi is active in California, and operates as a CFTC-regulated event-contract exchange in the state. It falls under federal regulation rather than local laws. It doesn’t have a California license. The same applies to Polymarket, including all California political markets.

Is online casino legal in California?

California has so far never authorized online casino gaming. There are no licensed online casino operators in the states. Casino gaming is mainly limited to tribal properties under Class III compacts and card rooms. They don’t offer house-banked games. Sites advertising California online casinos are located offshore and unregulated in the state.

What is the gambling age in California?

Depends on the product. Land-based casinos that serve alcohol have an age limit of 21. In card rooms, pari-mutuel horse racing tracks, and for State Lottery games, the limit is 18. California doesn’t have a state-wide gambling age. We advise players to check the legal age requirement for specific venues and products.

Do you pay tax on gambling winnings in California?

Yes, you must pay taxes on gambling winnings in California. They’re taxed as ordinary income. The top marginal rate sits at 13.3%, which is the highest figure in the USA. An additional 1.1% disability insurance rate applies to wagers. This isn’t tax advice. Players should check local laws if they win something at California’s allowed gambling establishments.