SAN DIEGO (KGTV) — Online gambling is illegal in 41 states, including California, despite a surge in advertisements for gambling apps promising big payoffs for minimal betting.
Lawmakers in California passed AB-831 this year, making it illegal to use online platforms that allow players to play games to win online currency that can be exchanged for real money prizes. Those caught gambling online in states where it is illegal can face hefty fines and, depending on the circumstances, jail time.
Craig Barkacs, an attorney and professor of business law at USD, said many of these online platforms specifically target a younger demographic.
"I think right now we're looking at what I'd call a dual addiction, that's a double disaster. People are addicted to cell phones, we know that's a problem. People are addicted to gambling. That's a problem. Now the double disaster is we know that cell phones a lot of damage, but steals your time. And of course gambling and this kind of gambling actually is stealing your money as well," Barkacs said.
Despite the legal risks, data shows people are playing. Numbers from GlobeNewswire, a news release distribution network, show the online social casino market is booming. The industry is expected to reach $10.11 billion by the end of 2026 and is anticipated to reach $14.23 billion by 2030.
Experts believe the combination of casino games and access to real-time interaction with other players through social networking sites has made online gambling popular.
However, Barkacs warned against believing claims of big winnings.
"You really can't trust what you see online. You shouldn't take it at face value," Barkacs said.
"People lie about their losses. Self-reported, the worst people ever do when they gamble is say I broke even. I broke even means they lost a couple of thousand dollars at least," Barkacs said.
"Even with legitimate gambling houses, it's set up mathematically so over time the consumer can't win. You go online and with these scam arrangements you can't win at all," Barkacs said.
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