Is Gambling Illegal in California?
You never want to gamble with your freedom. In California, the law makes participating in even the smallest games of chance a risky wager. The good news is that California defines gambling narrowly, allowing you to make that small bet with your friend on who can run faster. However, hosting a game night may have unanticipated consequences. You should be aware of what you can and cannot do to keep your poker night legal.
Banking Games Are Illegal
California prohibits anyone from participating in a “banking game.” Illegal participation can occur in a variety of ways, including:
- Playing;
- Dealing;
- Holding;
- Conducting; or,
- Carrying on.
Basically, if you are attending an illegal banking game, you are violating the law.
A banking game is defined as a game where one or more participants collects money from the losers and uses that money to pay winners. It is also known as a game where there is a “house” or a “bank.” For example, having a roulette wheel would be a banking game. If your number does not come, you lose your bet to the house. The house keeps these funds to pay out if your number does hit in the future.
Percentage Games Are Also Prohibited
In addition to banking games, California’s gambling laws criminalize “percentage” games. A percentage game is where the house or bank collects a set amount of each wager. This differs from a banking game because the funds are collected regardless of whether you win or lose. You pay a percentage of every bet to the house.
The percentage game prohibition mostly affects home poker games. If the host of the game (on any other person) takes a “rake” of the game, it is an illegal percentage game. A rake is the amount of the bet taken off the table before paying winners. While rakes are typically used to cover expenses such as dealers, tables, or security, a rake percentage could also be used to profit off of the event.
California law does include an exception to the gambling ban to allow charitable organizations to conduct certain types of bingo games when the proceeds of the games are used for philanthropic purposes. However, this exception is narrow and does not permit other types of banking or percentage games.
The Punishments for Illegal Gambling in California
If you are caught participating in an illegal banking or percentage game, you may end up in jail. Unlawful gambling in California is always a misdemeanor. The maximum punishments if you are convicted includes:
- Up to six-months custody in county jail
- A fine between $100 and $1,000
A judge can also order summary probation instead of sending you to jail. The sentence you receive will be based on the facts of your case and your criminal history. For example, you are more likely to end up in jail if you have past illegal gambling convictions.
To successfully defend against an illegal gambling charge, you will need the help of a skilled defense attorney. For example, your attorney might argue that you were hosting a charity event. Even if your event did not fall within the charity bingo exception, the fact that you donated the proceeds to a charitable purpose could help you avoid severe penalties.
If your weekly poker night was busted for illegal gambling in Huntington Beach, California, the Chambers Law Firm can help. Contact us today at 714-760-4088 or dchambers@clfca.com to set up a free initial case consultation with a knowledgeable member of our team.
