By Dana Smith
Compared to many other states, California has a relatively liberal and accepting view of gambling. As a result, the gambling economy is quite lively – however, it’s almost entirely supported by Native American-run casinos.
There are more than 60 Native American-run casinos in California alone, with 200 different recognized reservations operating these establishments nationwide. In fact, Native American casinos are thought to generate more revenue than Atlantic City and Las Vegas combined. This isn’t bad for an industry that has only been running since the Indian Gaming Regulatory Act of 1988 paved the way for gaming on reservation land.
The laws were revised again in 2000, fully legalizing Native American casinos and giving the state the ability to negotiate with owners over exactly what games and machines were allowed in their casinos.
The history of gambling regulation in California
California has a very detailed set of gambling laws with specific games being named on allowed and banned lists. This doesn’t just apply to Native American casinos either, with the card clubs, charity events and even home games being regulated. Although gambling has been popular in the state since its inauguration in 1850, it was only in 1933 that the first regulatory laws came in. These laws legalized on-track horse betting and the racing industry is still thriving in California today.
The laws weren’t altered again until the 1980s, when as well as Native American casinos being legalized, the state lottery was created. Running for over 30 years now, the California state lottery is hugely successful and has seen billions of dollars of prize money being handed out to winning tickets, as well as investment in state healthcare, education and services.
Online casinos: a new chapter in California’s gambling history?
In the last decade there has been a growing demand for further alterations of the state’s gambling laws, this time surrounding the legalization of online gambling.
The reason why is clear. Powered by enhancements in digital technology, online casinos are better, faster and more engaging than ever before. Players have been ditching land-based casinos to play online in huge numbers – and as such, online gambling is now worth over $70 billion worldwide. With change sweeping the industry, many believe California’s gambling laws have become outdated.
So far, only online horse betting is permitted in California, but several bills have been submitted requesting that other types of betting should also be allowed. All of these bills have so far been turned down, with the latest failing to even gather a single signature in support. Online poker has faced similar problems, with 16 attempts ending in defeat – despite poker being a very popular pastime.
Land-based casinos lobbying against change
The Native American casinos are often cited as being one of the main forces campaigning against the legalization of online gambling. Since the Supreme Court repealed the PASPA ruling in May 2018, Vegas casino magnate Sheldon Adelson has led an anti-online gambling campaign and donated over $100 million to the Republican Party. It’s now unlikely gamblers in the US will be able to play online casino games like so many players across the world.
However, would the change really hurt their revenues that much? Figures from other countries suggest that those likely to engage with online gambling come from a different demographic than those who traditionally visit casinos.
In the UK, for example, where the online casino industry is not only permitted but thriving, recent statistics show that online gambling is more popular with the under 35s, whereas land-based casinos see the most footfall from players in their 40s. In fact, the usage of online casinos also falls dramatically among people in this age group.
How are UK casinos regulated?
There are many online casinos with licenses to operate in the UK. The entire industry is regulated by the Gambling Commission, a government agency set up to issue licences and ensure that casinos are meeting their regulations and responsibilities relating to:
- Verifying players’ ages and sources of funds
- Having robust anti-money laundering measures in place
- Abiding by strict technical standards
As such, the industry maintains complete transparency, with anyone being able to see where the money is made, is going, and who is betting with it. So everyone benefits – especially the players, who get to choose between a host of different online gambling operators. With an exciting range of games, here’s a leading online casino in the UK where players can enjoy having a flutter anytime, anywhere and on any device.
Another condition for getting a gambling license is to agree to the UK’s tax laws: all profits are subject to a 20% tax with the money going into the government’s coffers. This money is then reinvested into vital public services such as transport, schools and hospitals. Last year the online gambling sector in the UK declared a gross gambling yield of £5.6 billion, with all taxes ploughed back into the economy.
Should California update its gambling laws?
A similar system could be beneficial for California, helping to increase an already buoyant economy even further. So far, with no legalized and regulated online casinos, any profits made from illegal online gambling are lining the pockets of foreign corporations.
What’s more, the state could be missing out on a way to engage with the next generation of adults. A generation who are more technologically savvy, but often don’t have the time to travel to a casino and spend an evening playing. This new generation enjoy gambling little and often, perhaps utilizing a lunch break or train journey home in order to place some bets or play a few slots.
Rather than creating competition for the existing land-based casinos, online gambling could enhance their popularity by making their games accessible off-site, which may then encourage people to visit, as they are already familiar with what they can expect to find there.
Antelope Valley residents in particular, might welcome the ability to gamble online, as there are very few legal gambling establishments within a reasonable distance. For those willing to make a drive for their night’s entertainment, the nearest choices include Diamond Jim’s Casino, a card club in Rosamond, and San Manuel Indian Casino and Bingo in Highland, offering table card games and a wide selection of slot machines. Both are popular local businesses and offer food and drink alongside the entertainment.
San Manuel also has late night entertainment venues with DJs and live bands playing in the bars. It seems a shame that the bigger cities Palmdale and Lancaster haven’t taken the opportunity to provide gambling venues for their citizens. Of course, Native American casinos are only allowed on reservation land, but there are no restrictions over where a card club can be set up.
Summary
Perhaps it is time for California to get with the times and follow in the footsteps of New Jersey, Delaware and Nevada to provide universal access to gambling games and entertainment, by allowing and regulating online gambling within its boundaries. As the UK serves to illustrate, a fully legal and regulated online gambling industry can provide more options for players, and also a healthy revenue stream for the government.
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Matt K. says
Just looking at economics alone, one finds that large casinos are dying entities. Atlantic City is dying, and there is tons of published literature on this subject. It has turned itself into a research facility for climate change and seal level rise.
Reno saved itself from completely dying by moving away from gambling in the early 2000s, but it’s still struggling to stay legit.
Las Vegas isn’t doing well. There are more rooms than occupants and casino revenue is down. Other than catching a performance, there’s no real reason to go to Las Vegas anymore. Unlike Reno, Las Vegas didn’t do enough to cut its reliance on gambling or casinos early on.
Primm, NV is dead and is little more than a truck stop with a few card tables and machines now. The mall is gone, the roller coaster is shut down, there are few restaurants there now.
Laughlin is barely hanging on. Emphasis on “barely”.
The Baby Boomers were the gambling generation. They don’t go out to casinos in droves like they used to. Gen Xr’s are complacent gamblers and not as enthralled with throwing money away as Boomers were because Boomers had much more expendable income.
Millennials and Gen Zr’s hardly gamble at all.
Asian tourists are not a reliable market when they’ve got Macau and Singapore to go to, at this point.
When you take all of this into consideration, the idea of a large casino in a place like the Antelope Valley seems pretty absurd.
Matt K. says
What is the constant push by this newspaper to have a large casino built in the AV? This is your second article in a three-month span. On top of that, this article was poorly-researched and felt like a canned good being erroneously sold to the public.
Large-scale casinos are bad news. The people who flock to them are primarily in the lower-income economic bracket. These are people who naturally have difficulty with making good financial choices and managing their money. The last thing they need is a large casino to seduce them into further problems.
The other poster who said that large casinos bring crime was right. There isn’t a single town where a casino was built that didn’t experience a significant jump in their crime rate. Thefts, break-ins, armed robberies and shoplifting all increase in areas with large casinos. Small businesses close, retail chains go out and all an area is left with eventually is janky pawn shops and loan centers. Crime is off-the-charts in Las Vegas and Atlantic City. It is also a huge problem in San Bernardino (where San Manuel is located) and in Hemet (where Soboba is located). The Palm Springs area has also experienced a crime increase since large casinos were built there.
Santa Ynez, where the Chumash tribe operates a casino, has experienced a huge spike in crime. Temecula continues to deal with crime (shootings, drugs, theft, etc.) related to the Pechanga casino there.
If the author of this piece, Dana Smith, would like to live near a large casino, he has the option of moving to any city in Nevada, Atlantic City, NJ; Tunica, MS; Biloxi, MS; or a number of towns bordering adjacent Indian reservations. We do not need a large casino in the Antelope Valley! Absolutely not!
If the author has the desire to live next to a large casino, he has a number of choices available to him if he relocates to the state of Nevada; Atlantic City, NJ; Tunica, MS; Biloxi, MS or a town adjacent to an Indian reservation.
The absolute last thing we need in the Antelope Valley is a large casino.
Steven P. says
Yeah…gambling! (insert eye roll here)…So that the EBT users can use the cash portion of their state money to gamble? …then when they lose it all, they’ll just go on a shoplifting or robbery spree to make up the difference. You’ll see a lot of innocent people targeted because someone made bad choices with their state money. You’ll also see stores close due to high levels of shoplifting. One thing you will see is more and more pawn shops so that the thieves can attempt to retrieve the money they lost.
This is why huge portions of Las Vegas look like a dump. This is why Atlantic City is a dump that is now irrelevant and closing down. This is why Bullhead City (next to Laughlin) looks like a complete dump! This is why Reno looks like a complete dump in the downtown area.
Until the demographics of the AV change and we’ve got less people on welfare, this isn’t going to work! It’s just going to aggravate the crime rate and make life more miserable for normal people.
Tim Scott says
“The demographics of the AV” are pretty much irrelevant, since the purpose of a casino would be to draw visitors, and their money. Casinos aren’t built based on the local market, other than the fact that they like to build in places where they won’t have too much trouble finding people to fill the hundreds of jobs that need to be filled in order to fleece the visitors.
The AV would be a brilliant place for a casino. Plenty of people who would be happy to have the jobs. Easy access for the millions of people who could drive a bag of cash up the 14 from LA. I’d be for it, other than the fact that it would immediately be another jewel in the crown of our local organized crime ring headed up by Wrecks Parris.
Chief Wild Eagle says
If it were in Lancaster, the Hekawi tribe would be perfect to run it.
Tim Scott says
Wow. That is an epic pop culture reference. Well done!
Alexis says
“I think we lost…where the heck are we.”
Tim Scott says
Yes, we’re the Hekawi. How’s that new lookout tower coming along?
William says
Me. I prefer to gambol mais chacun a son gout.
Whether it’s a pot shop, a casino, a big box store or car deaerships there are 3 important things to remember.
1. LOCATION
2.LOCATION
3. Er, what’s the other one? My apologies to Energy Secretary Rick Perry who is in charge of our nuclear arsenal a fact he didn’t know when nominated. That’s for the Trumpsters here who think Trump knows what he’s doing.
If you don’t want “X” in your town, fine.(aside from big box stores and dealerships) Your town’s residents will take their money and spend it somewhere else and that place gets the jobs and taxes.
If you want to consider casinos or pot shops “bad” things like Enron, Bear Stearnes, Lehman Brothers that’s on you politician. Oh, wait. Those weren’t considered bad businesses to have around until…. Both cities allow Wells Fargo branches, a bank that ripped off customers for millions. But, that’s OK.
Casinos and pot shops can be located and regulated responsibly if you are concerned about crime and other problems. There is no casino in East Lancaster and it is reported to be a dump anyway. No casino on Sierra Highway either and for $20 you can…… Why is that?
If a casino is located properly and the zoning around it supports quality businesses rather than a tire recycling plant or auto wreckers, it might work. Of course, anything done in Lancaster has to benefit the Bad ol’ Boys (B.O.B.) who own land in the “right” places.
Of course, the Antelope Valley (pop. >500,000) has 2 mayors that should be running small towns in some red state and not a fast growing area in Los Angeles County. Their tiny prefrontal cortexes just aren’t up to the job. We are left with their reptilian brains running thngs here with their eat or be eaten mentalities.
For examply, Hofbauer better kowtow to whatever Rex wants or he’ll be out on the street after the next election. Same with some of the others on both city councils. It’s like the Trump administration without the class Just joking. Trump has indeed given us a classless society.
know when to hold em says
there’s a place in lake la.
Ramblin' Gamblin' Man says
It is a gamble walking around the BLVD.
Dan says
People can already play online, with such systems as Americas Card Room, etc. Diamond Jim’s is a nice place. I wish more people went and I wish they had a more updated website, better marketing, and a tournament schedule. It would be awesome if Lancaster had a casino but the AV doesn’t particularly need a casino, it just needs to help Diamond Jim’s improve.