California's constitution blocks Nevada-style casino gambling. Article IV, Section 19 directs the Legislature to prohibit casinos of the type operating in Nevada and New Jersey, so any expansion needs a statewide vote. Voters approved Proposition 1A in March 2000, opening the door for federally recognized tribes to run Class III gaming (slot machines, blackjack, banked card games) on tribal lands under compacts negotiated by the governor and ratified by the Legislature. That tribal exclusivity has been the only state-sanctioned casino model since.
Both 2022 sports betting measures failed on November 8, 2022. Prop 26, backed by tribes for retail-only sports betting, lost with more than two-thirds against. Prop 27, funded by DraftKings and FanDuel for online sports betting, lost by roughly 83 percent against, one of the widest defeat margins in state history. Tribes now point to 2028 as the realistic earliest launch, retail-only, with all in-state tribes included. Two 2025 actions narrowed the legal grey area. AG Rob Bonta's July 3, 2025 opinion called paid daily fantasy sports illegal under Penal Code 337a, pushing operators like Underdog and PrizePicks into peer-to-peer formats. Gov. Newsom signed AB 831 on October 11, 2025, criminalizing dual-currency sweepstakes casinos starting January 1, 2026.