California’s Shifting Gambling and Crypto Scene | San Jose Inside

Recent developments in these sectors will affect the future of online sports betting.

Published in cooperation between Techopedia and San Jose Inside

California has recently seen many changes and movements within its gambling and crypto industries. The legalization of online sports betting was proposed and ultimately failed. At the same time, the Governor of the state passed a bill to enhance crypto regulations. On top of that, the state’s tribal groups and cardrooms continue to argue over gambling rights. With so much happening in California, let’s take a look at the recent developments in the gambling and crypto sectors.

Sports Betting Dilemma

Efforts to legalize online sports betting in California have faced persistent setbacks, leaving the state’s stance on sports gambling uncertain. Even though lawmakers in California have tried several times to make sports betting legal, it hasn’t happened yet. This makes it unclear what will happen to people who like to bet on sports. There’s still talk about how legal sports betting could be good for the state and how people could use apps to place bets, but there are still problems with getting laws passed.

Because of these legal issues, more Californians are using offshore crypto casinos. These secure casinos allow players to stay anonymous while gambling online. Cryptocurrency casinos such as those ranked by Techopedia are gaining popularity as they offer a new kind of gambling experience. According to crypto expert Michael Graw, crypto casinos are popular as they offer a large variety of games, quick payouts, and large bonus offers. The anonymous casino options and borderless nature of cryptocurrency make these platforms attractive for those seeking to participate in online sports betting or online casino games in California.

Even with quality offshore crypto casinos, many in California are still working towards legalizing sports betting in the state. However, recently there have been new developments in this ongoing saga.

Recent Incidents Highlighting Consequences

Recent events in professional sports show how serious the problems with illegal sports betting in California can be. On June 5th, Tucupita Marcano, who plays for the San Diego Padres, was given a lifetime ban by Major League Baseball for wagering on ball games. This disciplinary action is part of a broader pattern within professional sports, with other athletes such as Oakland A’s pitcher Michael Kelly also receiving similar bans. These incidents serve as reminders of the severe repercussions faced by athletes who engage in unauthorized gambling activities.

Potential Progress and Collaborative Efforts

Despite the legislative hurdles, signs of potential progress emerged on April 11th at the Indian Gaming Tradeshow & Convention held in Anaheim. People who run businesses and leaders from Native American tribes are working together more than before to try to make sports betting legal in California. This teamwork is a positive move that could help push for laws to change in the future.

The Road Ahead

With the recent legalization failures, the timeline for legal mobile sports betting in California remains unclear. However, the collaboration between operators and tribes might be a sign of change, and could even help make sports betting legal in California someday.

California Cracks Down on Crypto: New Law Aims to Regulate Digital Asset Businesses

While online sports betting remains illegal in the state, California has recently implemented new legislation to regulate crypto, which could open doors to its further use in the future for things like wagering on games and sports online. California has taken a major step towards regulating the burgeoning cryptocurrency industry with Governor Gavin Newsom signing the Digital Financial Assets Act (DFAL) into law. This law is California’s version of New York’s “BitLicense.” It aims to create clear rules for digital currencies. It’s a big step for the state and will set up a system to license and oversee companies that deal with digital assets like Bitcoin and Ethereum.

The recent changes show California’s efforts to regulate and support these fast-growing areas. For now, legal mobile sports betting remains elusive, but these new rules could be a sign of a changing tide, potentially paving the way for a future where California will also create rules to regulate the online sports betting industry with crypto and fiat payment options.

What to Expect Under the DFAL

Licensing Requirements: In July 2025, any company engaging in “digital financial asset business activity” within California must obtain a license from the Department of Financial Protection and Innovation (DFPI). This activity could include different services like cryptocurrency exchanges, holding crypto for clients, and lending platforms.

Consumer Protection: The DFAL prioritizes consumer protection within the crypto space. By requiring licenses, the state wants to make sure companies follow rules for security, keeping records, and informing customers. This can help stop fraud and other risks with cryptocurrency investments.

Enhanced Oversight: The DFPI will have the authority to supervise licensed businesses, conduct examinations, and enforce compliance with the act’s regulations. This will provide a layer of regulatory oversight currently missing in the largely decentralized crypto world.

Impact and Potential Challenges

Increased Legitimacy: The DFAL’s regulations could bring more legitimacy to the crypto industry in California, potentially attracting new businesses and investors.

Potential Hurdles: However, the licensing process and compliance requirements might pose challenges for some companies, particularly smaller startups. Following these new rules might cost businesses more money.

Uncertain Future: The specific details of the DFAL’s implementation, including the licensing application process and ongoing compliance requirements, will be determined by the DFPI through rulemaking. This could take time and may face legal challenges.

California’s new law for digital money is important and might influence how other states handle it. While the exact impact remains to be seen, it’s clear that California is taking a proactive approach to bring order and consumer protection to the ever-evolving world of cryptocurrency.

California Tribes Sue Cardrooms Over Gambling Rights

California’s new law for digital currency, the DFAL, is a big move. But the details, such as how companies get licenses and follow the rules, are still being figured out. Figuring out exactly how this new digital money law works will take a while and might get fought in court. But even though it’s not perfect yet, California is a trendsetter and other states might follow its lead.

In the meantime, there’s a separate fight going on about gambling in California over gambling rights. Some Native American tribes in California are unhappy and want to sue cardrooms. They say the cardrooms are playing games that only the tribes should be allowed to offer. The tribes rely on money from these games to help their communities, and they claim the cardrooms are hurting their business. The cardrooms and the cities they’re in say they’re not doing anything wrong and that lawsuits would be terrible for them, forcing them to close and lay off workers.

The Assembly Governmental Organization Committee in July 2024 passed a bill, SB 549, which is working its way through the legislature that could give tribes legal muscle to challenge cardroom operations. The bill’s fate is uncertain as both sides lobby intensely.

This is not the first time tribes and card rooms have clashed over gambling rights in California. Native American tribes have long had special rights to run certain gambling games. This raises questions about balancing economic interests with tribal sovereignty and how gambling regulations should be interpreted. The public has different opinions. Some say tribes deserve the money, others want more choices for gamblers. This argument could change how gambling works in the entire country. Whoever wins will decide the rules for the future.