California’s policies are still cautious regarding the expansion of the gambling industry, and lagging behind some of the other states of North America. While online casinos are illegal in California, players still access this entertainment through sites based overseas. Canada addressed this issue differently and chose to regulate offshore brands. Many of them are now trending as new Canadian online casinos with quick sign-ups, great welcome bonuses, and a range of slots and live dealer games. Thanks to its legislative framework, Canadian provinces can tax these brands on the revenue they generate from Canadian players.
It’s difficult to estimate how many Californians are using foreign sites because of a new trend, or operators that they use have significantly reduced onboarding friction. New players are gravitating toward casinos that offer speed and privacy, where traditional ID checks are replaced by smarter verification methods linked to payment systems. In essence, if players use crypto for gambling and only deposit and withdraw small amounts, the KYC verification isn’t enforced at all.
As California faces pressure to redo its gaming framework, these international changes offer a glimpse into what a more modern and balanced legislation can be like.
Pressure for Expansion
Proposals to increase table counts and increase limits on operating hours at existing sites are gaining traction. For example, AB 341 (2023) renewed the moratorium on new card rooms until 2043, but allowed venues with less than 20 tables the opportunity to add up to 10 new tables, dated January 1, 2023.
Even though these are modest increases, any further growth must still comply with local referendums. The two-tiered structure pits tribal interests against private interests and creates sensitive political and economic tension at the local government level.
Online and Remote Gambling Debate
The state is examining its laws on the remote gaming formats it offers. SB 860 (2025) proposes to amend outdated laws relating to remote caller bingo and handheld card-minding devices. In contrast, AB 831 (2025) prohibits dual-currency sweepstakes casinos. These comply with current laws and regulations, but engage in very similar practices to real-money gambling.
As of mid-July 2025, AB 831 continues to go through legislative committee discussions following consensus committee member votes. This sparks a question: Does California remain steadfast in its prohibition, or should it move towards regulated gaming?
Licensing Tightening
The AB 1271 (2023) legislation altered the licensing scheme to have a multi-endorsement “owner license,” and also lightened background checks for applicants previously licensed in good standing. Simultaneously, AB 553 (2023) requires Department of Justice audits commencing Jan 2026 to successfully track employee hours and track financial flows in tribal casinos.
Authorities are also taking an interest in shell companies and hidden ownership structures, an indication of a crackdown on ”shady” practices in casinos. These shifts imply a desire from regulators for increased integrity and transparency.
Local Government Power
Cities, counties, and their local governments may expand non-tribal gaming up to 25%, which is still in line with the state law. As gambling revenue starts to impact local budgets, municipalities desire greater local control over their tax rates and approval of expansion. That said, these resorts are regulated through joint efforts.
Tribal commissions are in charge of licensing and ensuring that licensed brands operate in accordance with the state laws. The state mainly helps with inspections and audits, and in determining if the applicant has a sustainable business model.
Player Protection and Compliance
Regulators have certainly ramped up player protections against problem gambling and criminal infiltration. AB 831, a bill that targets sweepstakes sites that aren’t regulated by the state. The goal here is not to punish the players, or even third-party businesses, e.g., payment providers, who unknowingly helped these sites to operate. The goal is to go after the businesses that managed to take advantage of some undefined laws and created a revenue model that closely resembles real money gambling, often mimicking features seen on the best no verification online casinos list.
SB 451 (2025) extends Department of Justice authority to investigate non-compliant illegal gambling, even if not in a licensed establishment. It requires enforcement referrals and encourages anti-gambling campaigns.
What to Watch Next
During 2025-2027, significant changes may occur:
- Ballot measures. Following the defeat of Props 26 and 27 in 2022, tribes and other stakeholders want to bring unique sports betting and online gambling initiatives
- Litigation under SB 549. As tribes test the limits of “banked” games, the lawsuits may redefine what types of table games and card rooms may be legally conducted.
- Regulation of sweepstakes. AB 831 will legislate a ban on dual-currency platforms, because it mirrors real money gambling
- Modernization of regulations about digital gaming. If SB 860 passes, this may begin the repeal of any outdated legacy rules, thus clearing a path for licensed online poker, sports wagering, and iGaming
- Scrutiny around licenses. The CGCC and DOJ will likely take action toward transparency. Specifically, with source of funds checks, owner disclosures, and stricter criteria regarding license renewal.
As some of these developments converge, California is nearing a critical moment. Regulators, tribes, and voters must decide whether to strengthen the “status quo” or evolve toward a more digital and modernized gaming ecosystem that’s ready for the 21st century.
