California Statewide Rule
California Social Gambling Exemption for Private Home Card Games
Key Facts
- Governing statute
- Penal Code § 337j(e)(2)(D)
- Exempt activity
- Card games in private homes, no operator profit
- What breaks the exemption
- Any rake, seat fee, or host profit
- Unlicensed controlled-game penalty
- Up to 1 year jail, $10,000 fine
- Related ban
- Penal Code § 330 bars banking/percentage games
- Key case
- Sullivan v. Fox (1987) defines 'percentage game'
Summary
California law exempts private home card games from gambling regulation entirely. Penal Code § 337j(e)(2)(D) excludes any card game played in a private home or residence from the definition of a "controlled game," so long as no one profits from operating it except as a player. Add a house rake or entry fee and the same game becomes an unlicensed "controlled game," a crime carrying up to a year in jail.
(e) (1) As used in this section, "controlled game" means any poker or Pai Gow game, and any other game played with cards or tiles, or both, and approved by the Department of Justice, and any game of chance, including any gambling device, played for currency, check, credit, or any other thing of value that is not prohibited and made unlawful by statute or local ordinance. (2) As used in this section, "controlled game" does not include any of the following: (A) The game of bingo conducted pursuant to Section 326.3 or 326.5. (B) Parimutuel racing on horse races regulated by the California Horse Racing Board. (C) Any lottery game conducted by the California State Lottery. (D) Games played with cards in private homes or residences, in which no person makes money for operating the game, except as a player.
Full Breakdown
Penal Code § 337j governs "controlled games", poker, Pai Gow, and any other card, tile, or chance game played for money, credit, or anything of value that isn't separately outlawed elsewhere in state law. Running or operating a controlled game without "all federal, state, and local licenses required by law" is a crime under subdivision (a), and subdivision (b) makes it equally illegal to knowingly let an unlicensed controlled game run on property you own or lease. Subdivision (e) carves the private home game out of that licensing regime entirely: paragraph (1) defines "controlled game" broadly, then paragraph (2) lists what the term does NOT include, bingo under §§326.3/326.5, parimutuel horse racing, the state lottery, and, at (e)(2)(D), "games played with cards in private homes or residences, in which no person makes money for operating the game, except as a player." A poker night at someone's kitchen table where the only money changing hands moves between the players themselves, never to a host or organizer, is not a "controlled game" at all, it needs no state gambling license, no local card-room permit, and no Bureau of Gambling Control registration.
The exemption turns entirely on who profits from running the game, not on the stakes, the number of players, or how often the game happens. The instant a host takes a cut, a per-hand rake, a seat fee, a cover charge to get in the door, the game stops being a private home game under (e)(2)(D) and becomes an unlicensed controlled game under (a), because now someone is making money for operating it. Separately, Penal Code § 330 bans "any banking or percentage game" outright regardless of venue; courts (Sullivan v. Fox, 1987) have read that phrase to reach only games where a bank or dealer profits structurally from the deal, which is why standard-deal home poker among equals falls outside it too.
Violations & Penalties
Operating or knowingly hosting an unlicensed controlled game, including a home game where the host rakes the pot, is a misdemeanor under § 337j(d): up to one year in county jail, a fine up to $10,000, or both. A second conviction raises the maximum to state prison. Separately, dealing or playing a banking or percentage game under Penal Code § 330 is a misdemeanor punishable by a $100–$1,000 fine, up to six months in county jail, or both.
Frequently Asked Questions
Is it legal to host a poker night at my house in California?
Can I charge a fee or take a percentage of the pot to host a home poker game?
Does the private-home exemption cover any card game, or just poker?
What if the home game uses dice or a wheel instead of cards?
Sources
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