California Governor Gavin Newsom has signed AB 2001 into law, allowing cities in the state access to additional resources for the use of tackling illegal gambling and sex work – among other things.
Indeed, aside from regulated Tribal casinos in the state, gambling remains illegal in California. This latest bill specifically grants city attorneys and counsels access to state criminal history records which were previously withheld and limited by geographical jurisdiction. City officials can now access these records when investigating instances of public nuisance and red-light abatement cases.
Authorized by Assemblymember Catherine Stefani and signed into law by Governor Newsom, this latest legislative development signifies California’s retained stance against widespread gambling regulation which has long been sought by the industry. Last month, Governor Newsom also signed a number of measures relating to Tribal-state gaming compact extensions, regulatory fees and horseracing.
Of course, California's state gambling system – much like the federal gambling system across the US – has been rocked by the explosion of prediction markets over the past 18 months. Players in the state who have long been prohibited from accessing online gaming can now access event contract exchanges via a number of operators protected at federal level by the Commodity Futures Trading Commission’s (CFTC) regulatory oversight.
Tribal operators across the US have voiced their concern and opposition to the platforms, which provide gambling-adjacent offerings while adhering to no explicit gambling regulation. Indian Gaming Association Chairman David Bean joined the Global Gaming Insider CEO Special magazine edition, explaining that Tribal victory against prediction markets would, in his opinion, simply require US politicians to “follow the law.”
With a $4.5trn economic output, California remains the world’s fourth largest economy behind Germany, China and the US, itself
