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California Gambling Debt Laws

    Prohibition on Online Gambling

    • CIn 1999, a California woman, successfully sued Visa for allowing her to use her credit card to pay for wagers, since the transactions are not allowed by California law. As of 2010, California law continues to prohibit online gambling; creditors cannot pursue legal action against debtors who default on payments for gambling transactions. Internet sites do not have to specifically warn users that gambling is illegal in California, but must notify them that it is illegal in some states.

    Prohibition Against Lotteries

    • The state of California may not authorize private lotteries or games of chance, although it is authorized to run a state lottery for the purpose of raising state funds. However, non-profit organizations may hold raffles to raise funds for their organization or cause as long as at least 90 percent of funds raised this way go to charitable causes.

    Casinos

    • Casinos are generally not permitted in California, with the exception of casinos on Native American land. Casino owners must be members of federally recognized tribes and must operate casinos on Native American reservations. Native American casinos may offer slot machines, games of chance and card games.

    Horse Racing

    • Betting on the outcome of horse races is permitted in California. The government of California has the right to regulate where and when horse races take place, maximum bet amounts, and other issues related to gambling on horse races.



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