Examining the Estimated Value of a Proposed Regulated Online Gambling Market in California
California, one of the most populous states in the U.S., currently maintains a strict stance on online gambling, with no legal provisions for online casino gaming or sports betting as of mid-2025 [1][5]. This regulatory approach contrasts sharply with several other states, where online casinos and sports betting are becoming increasingly prevalent.
AB 831, a bill aimed at banning sweepstakes-style casinos and sportsbooks, is currently advancing in California's legislature, signaling tighter restrictions on unregulated online gambling [1][5]. This decision is in line with the state's tribal gaming interests, which have strongly opposed online gambling, as evidenced by the recent rejection of Proposition 27, a ballot measure aimed at legalizing online sports betting [2][3][5].
In contrast, states like Connecticut have established legal online casino markets. The state legalized online casinos in October 2021, with multiple operators offering classic casino games and slots [2]. Colorado, too, permits online sportsbooks but does not yet allow online casinos, though legalization prospects are improving there [2].
The regulatory landscape outside California is more permissive, with 38 states offering legal sports betting in some form, and 30 of these states allowing online sports betting [4]. This trend is reflected in the growing revenue from online gambling, which is expected to exceed $23.03 billion by the end of this year [6].
Brick-and-mortar casinos still have a significant presence in the U.S., and states like Pennsylvania regulate a total online gambling scene, with revenues in 2023/24 eclipsing $2.1 billion at a 36% tax rate [6]. However, the specific tax rates for online gambling and brick-and-mortar casinos in the U.S. were not mentioned in the provided paragraphs.
Interestingly, New York taxes online gaming platforms at a rate of 51%, while brick-and-mortar establishments are taxed at 10% [6]. This contrasts with California, where the taxation of online gambling remains undefined.
On the global stage, the regulatory standards for online gambling differ significantly. The European Union has developed legal regulations for online gambling, while some countries set limits or apply a full ban on gambling with strict penalties [7]. In countries with strict gambling bans, illegal casino-like destinations often flourish.
Online casinos offer various welcome bonuses, ranging from $25 on the house to $150 and 50 spins [6]. The American Gaming Association (AGA) provides statistics on gambling revenue, offering insights into the growing industry.
In Florida, the online sports betting sector is expected to see $2 billion in bets per month if it opens [8]. The mobile sports betting handle in New York reached $2.32 billion in October 2024 [9].
In conclusion, while California maintains a strict stance on online gambling, other states are embracing this digital frontier, with online casinos and sports betting becoming prominent across the U.S. The revenue from online gambling is expected to continue growing, offering potential benefits for states that choose to legalize and regulate it.
References:
- California Online Gambling: The Current Landscape and Future Prospects
- States with Legal Online Casinos in the U.S.
- California Voters Reject Online Sports Betting Proposition 27
- Legal Online Sports Betting in the U.S.
- California's AB 831: A Closer Look at the Bill Aimed at Banning Sweepstakes-style Casinos and Sportsbooks
- Online Gambling Revenues Expected to Exceed $23 Billion in 2023
- Global Gambling Regulations: A Comparative Analysis
- Florida's Online Sports Betting Sector: A Look at Its Potential Impact
- New York Mobile Sports Betting Handle Reaches $2.32 Billion in October 2024
The community news highlights the ongoing advancement of AB 831 in California's legislature, aiming to impose tighter restrictions on unregulated online gambling, while states like Connecticut have established legal online casino markets and generate significant revenue from these sources. In contrast, the European Union has developed legal regulations for online gambling, and the American Gaming Association (AGA) offers insights into the growing industry.
In the realm of sports, the mobile sports betting handle in New York reached $2.32 billion in October 2024, while the online sports betting sector in Florida is expected to see $2 billion in bets per month if it opens. On the global stage, regulatory standards for online gambling differ significantly, with some countries setting limits or applying a full ban, and illegal casino-like destinations often flourishing in places with strict gambling bans. The specific tax rates for online gambling and brick-and-mortar casinos in various states were discussed, with New York taxing online gaming platforms at a rate of 51%.
