In recent decades, gambling has gained popularity within California and the larger United States. When people compete against or with one another, many things can occur. While some winners win lawfully, other players win by violating rules or cheating to manipulate gambling outcomes. For this reason, any person who wins, even if they know they won fairly, could be suspected of cheating because winning a lot of money through gambling fraud has become common. If this situation arises, contact us, the Monterey Criminal Attorney, for help defending yourself against these charges.

What is Gambling?

Gambling is the willingness to engage in, stake money on, or play games of chance for monetary or material gain. It involves activities such as:

  • Policy games.

  • Lotteries.

  • Any risk-based games where participants stake money or assets in hopes of winning.

If you place a wager or put something of value at risk while hoping to win, you will be gambling. This applies even though you have little influence over the results. However, no buying or selling of items occurs, and no indemnification contracts or insurance policies are in place.

You should understand the provisions of lawful gambling applicable in your jurisdiction before participating in any kind of gambling. Distinguishing between illegal and legal gambling can help you avoid potential criminal charges. Some states prohibit using the net for gaming, while others ban amateur gambling even within one's own home.

Gambling Laws in California

According to PEN 332, gambling fraud, also known as gaming fraud, is the illegal acquisition of a significant item or cash from another person through any of the following methods:

  • Gambling or betting.

  • Pretending to know what will happen to other people’s futures.

  • Card games and other tricks, like the three-card monte.

Contrary to the widespread misconception, California laws do not prohibit gambling. However, participants must adhere to regulations and criteria for gambling and bookmaking, as outlined in California Penal Code sections 330 and 337.

Using stacked decks, card tricks, and similar strategies to lure naive gamblers into playing is illegal, and it is charged as gambling fraud. The law protects the integrity of the gambling industry. According to PEN 332, the consequences for this charge range from penalties for petty theft to those specified for grand theft. Gambling and gaming fraud under California PC 332 involves deceptively obtaining someone's money or possessions through gambling, gaming, or games such as three-card Monte.

According to this context, fraudulent behavior involves being untruthful, deceptive, or engaging in activities that lack moral decency and integrity. For someone to be charged with this offense, it should be demonstrated that they obtained property or cash from another person through deception.

When the word "property" is utilized here to refer to anything of significant value that a con artist can obtain from their targets. This category may include tokens or poker chips with a specific monetary value. This definition indicates that anybody, including players, gambling business owners, and gamblers, might be charged with engaging in fraudulent gambling activities.

The act of influencing game outcomes is prevalent in areas where gambling is legal. Players participating in this conduct often consistently win large amounts in gaming events.

What Evidence Does the Prosecutor Need to Present?

The primary burden of proof in criminal court proceedings is providing proof beyond a shadow of a doubt. One of the most important elements the prosecution needs to demonstrate to charge you with gambling fraud is that the defendant intended to conduct fraudulent activities.

The prosecution should demonstrate that you engaged in fraudulent behavior and that your actions caused the victim to lose property or money. Below is a summary of the elements the prosecutor needs to establish for a gaming fraud allegation to be considered credible:

Willingness to Commit Fraud

To find you guilty of gaming fraud, the prosecutor must prove beyond a shadow of a doubt that since the game's start, you deliberately intended to mislead the other player, solely to defraud them of their personal belongings or cash. This is the basic principle of the accusation of gaming fraud that may be brought against you.

You will be said to have used tricks if you cheat to gain an unfair advantage over an opponent using unethical tactics outside the game's rules. However, if the prosecutor cannot prove your main intention was to cheat the other individual out of their possessions or money, the charges against you will be dropped.

Fraudulent Acts

Fraud refers to the intentional misrepresentation of certain facts to gain an unfair advantage. This happens if you provide certain facts to deceive someone into believing false information is accurate while knowing it is untrue.

Using natural intelligence tricks that comply with poker guidelines is not considered cheating provided you did not intend to gain an unfair advantage over other players by using methods outlawed by the game's rules.

The California Supreme Court has ruled that fortune-telling is a form of fraud when someone uses deception to gain another person's wealth or possessions. This occurs by making it appear that one can foretell the future.

The Loss Of Either Property Or Cash

The prosecutor must demonstrate beyond a shadow of a doubt that you engaged in fraudulent behavior with the intent to persuade the other individual to irrevocably part with their possessions or money. However, the prosecutors are not required to provide evidence that the victim lost their belongings or money.

When talking about property, we refer to anything with measurable monetary value. The prosecutor's responsibility is to convince the court that your primary intention was to defraud the other party to acquire a specific piece of valuable cash or property.

Common Forms of Gambling In California

Arcade games, slot machines, lotteries, betting, casinos, and bingo are the most popular forms of gambling in California. Some of these gambling activities require a license, while others may be prohibited. Below is a summary outline of these gambling acts:

Betting

Betting involves placing stakes on a certain outcome. In California, the two most common betting practices are fixed odds and pool betting.

When a player participates in fixed-odds betting, they can predict predefined outcomes for a specific event. For example, they might forecast that a particular soccer team will score a certain number of goals during a match. Fixed-odds bets can be placed at betting facilities or online. In contrast, pool betting payouts depend significantly on the total number of bets in a particular pool.

Arcades

Arcade games are open to both minors and adults. California has a variety of arcade gaming spots. These centers can cater to either adults only or families. Arcade gaming facilities for grownups are age-restricted, and no one under the age of 18 is allowed to attend.

Lotteries

Many types of lotteries exist, such as raffles, sweepstakes, and tombolas. California oversees the operation of the state lotteries. State penal statutes prohibit anyone under 18 from engaging in lotteries. Participating in lottery activities as an underage person may result in a misdemeanor charge, depending on the circumstances.

Casino

California offers a wide selection of casino games, available both online and at physical casinos. Classic options include blackjack, roulette, baccarat, and American roulette, among many others.

Gaming Machines

Gaming machines refer to any device capable of functioning as a platform for gambling, including slot machines, jackpot machines, and fruit machines. California law does not classify personal computers as gaming machines.

Legal Gambling Activities in California

The California legal system has granted legal recognition to the following types of gambling activities:

  • Indian casinos, including bingo halls, and offering games like poker, blackjack, and slots.

  • Parimutuel betting, primarily in horse racing, where the house pits players against one another, collects stakes, deducts management taxes and charges, and distributes remaining funds to winners.

  • Card clubs, where players compete against each other by placing bets, and the club receives a fee for hosting.

  • Charity gambling, where winnings are donated to philanthropic organizations to fund their operations. Charitable organizations often arrange these events.

The California State Lottery organizes and manages the state lottery operations. Mega Millions and SuperLotto Plus are two games available to players participating in the lottery. If you participate in gambling not sanctioned by California, you risk prosecution for illegal gambling.

The Most Common Types of Gambling Fraud

Several different types of gambling can be classified as fraudulent in the state. The following are some of these examples:

Using Multiple Accounts

Creating an account is often required when gambling on an online platform. Some gamblers open numerous accounts to boost their likelihood of winning. Since these accounts are created using false information, operators face criminal charges of gambling fraud.

Deceitful Top-Ups

Most online casinos and betting sites today require customers to "top up" their accounts using mobile devices. A con artist could trick an unsuspecting person into adding money to the fraudster's betting account, which is fraudulent. This action is a form of theft since the con artist has taken money from another person to support their gambling habit.

Gamers may also use forged credentials to access their accounts. Some might use stolen credit or debit cards to finance their gambling practices. These actions are considered deceitful top-ups, and individuals engaging in them may face accusations of gaming fraud.

Chargebacks

These chargebacks are proposals issued to banks or credit card companies to change top-up payments on betting websites. These acts are considered fraudulent because the gambling operator's funds are typically used to repay the chargeback.

Misuse of Bonuses

Online gambling services often offer new users bonuses upon registration. Some long-time users may create numerous accounts to accumulate more rewards. This fraudulent activity, known as "bonus abuse," is extremely common.

Fortune Telling

In general, California does not regulate or prohibit fortune-telling. The First Amendment of the United States Constitution protects it as a form of free speech. However, according to California's fraud laws, fraudulent fortune-telling is forbidden. Fraudulent fortune-telling happens whenever a fortune teller solicits valuable property or money from a member of the general public without believing in their predictions or readings.

Chip Dumping

Chip dumping is a prevalent form of cheating in poker games. In this scenario, a fraudster uses multiple accounts to significantly influence the outcome of a specific game. Having several accounts enables them to cheat in favor of or against opponents.

The Legal Consequences of Gambling Fraud

The penalty for gambling fraud can be determined by several factors, such as the money you obtained from the fraud victim or the property value. If you defraud someone of more than $950 in property or cash, your crime is considered a California wobbler under the law. The court could charge the crime as a misdemeanor or a felony.

If you defraud a victim, either cash or property worth less than $950, through dishonest gambling, you could face misdemeanour penalties.

Misdemeanor Gambling Fraud

If the prosecution files a charge for misdemeanor gambling fraud, the punishment could include jail time. The length of your jail sentence is determined by the value of cash or property you illegally took from the alleged victim.

If you acquired property or cash valued at less than $950, you might face up to 6 months in jail. If the total value of property or cash involved surpasses $950, you could face a maximum of 12 months in jail or subject to fines worth no more than $1,000.

You may also have to undergo misdemeanor probation. Misdemeanor probation is sometimes known as summary probation or informal probation. In place of incarceration, the judge might recommend probation. You may be required to complete community service and pay the victim as part of your probation. If you do not follow the conditions of your probation, the court could terminate it and impose jail time.

Felony Gambling Fraud

If the prosecuting attorney charges you for felony gambling fraud, the penalties include time in jail. The length of imprisonment could vary according to the crime and the court's discretion. You might be imprisoned for sixteen months, 2 years, or 3 years behind bars. This is in accordance with the realignment program.

The court could impose a substantial fine not exceeding $5,000 for a first-time violation. If you perpetrate a second or subsequent felony violation, the court could order you to pay a higher penalty of no more than ten thousand dollars.

You may also be required to serve formal or felony probation. The probation conditions may be tougher than those for misdemeanors. For example, you may be obligated to submit regular reports to the probation department when on probation. You may also be required to attend regular meetings with your probation officer.

The court could require you to carry out community service during your probation. You may also be required to make restitution to the alleged victims. Restitution means compensating the victims for damages they might have suffered due to your actions.

In most cases, the prosecution decides whether the matter will be charged as a misdemeanor or a felony. Even if the prosecution files the matter as a misdemeanor, the court's judge may exercise discretion and treat the offense as a felony, and vice versa. After being convicted of felony gambling fraud, you can plead with the court to have your felony conviction reduced to a misdemeanor. You would need to work with a seasoned lawyer to accomplish this.

Committing gambling fraud can jeopardize the status of your immigration. If you are a foreign national and engage in gambling fraud, you could face deportation. A gambling fraud conviction could also have an adverse effect on how likely you are to secure professional or vocational licenses in California. You may not be able to seek permanent residency in the United States.

In certain cases, you can defend gambling allegations in court with the assistance of a lawyer, and the court can drop your charges. In California, gaming fraud is not classified as a violent offense. According to the California Three Strikes Law, this is not a serious felony that could result in a strike against your record.

Legal Defenses Against Gambling Fraud Charges

Prosecutors have full discretion in charging individuals with misdemeanor or felony gambling fraud. This depends on the value of property or funds fraudulently obtained. Regardless of the charge, you should hire a lawyer to avoid conviction. Your attorney can use the following legal defenses in a gambling fraud case:

The Freedom Of Speech Defense

The defense of freedom of speech can apply in cases where an individual is accused of fraud related to fortune-telling. Fortune tellers or astrologers from a specific religious group who believe in predicting future events will not be deemed guilty of gambling fraud solely for accepting payment to provide fortune-telling services.

Furthermore, if your main objective was to entertain the general public, allegations of gambling fraud against you will be dismissed. You might be found guilty of gambling fraud if there is convincing proof that:

  • You knowingly participated in predicting the future.

  • You are aware of your inability to accurately foretell events.

  • Intend to deceive the public and unlawfully obtain their valuable assets or money.

The California Penal Code prohibits making fraudulent misrepresentations of facts. The legal protection of freedom of expression is a fundamental defense explicitly stated in the First U.S. Amendment. Effectively employing this defense can lead to either a dismissal or an acquittal.

The Item You Acquired Is Not Valuable

To convict you of fraud in California, prosecutors must establish beyond a shadow of a doubt that you obtained valuable property or funds from the individual you deceived. The prosecutor must show more than just your fraudulent actions during gaming to build a solid case. Evidence demonstrating the acquisition of a certain amount of cash or valuable assets is necessary to establish a case. If what you acquired is worthless property, you will be acquitted.

Entrapment

The police or law enforcement authorities use many techniques to entrap people in fraudulent gambling. Some of these common methods include:

  • Presenting an opportunity to commit fraud—The officer can create a plan offering you a quick profit from a gaming scheme involving deception or fraud.

  • Assuming the identity of a victim— Law enforcement personnel could act as potential victims willing to participate in a gambling scheme.

  • Supplying equipment or provisions— Police officers can provide the necessary equipment or supplies for the gaming operation. This can include marked cards, counterfeit currency, or weighted dice.

  • Recurring solicitation— The authorities might persistently urge you to participate in the gambling scheme until you agree.

  • Using threats or coercions— Law enforcement agents sometimes intimidate offenders or their immediate families to ensure compliance, intending to cause harm.

Not all schemes utilized by undercover police can be considered valid defenses. The crucial determinant is that if the officer coerced the defendant into engaging in a criminal act, they would not have been inclined to commit otherwise.

The defense of entrapment is only successful if it can be demonstrated that law enforcement coerced the individual into committing the criminal act. You must prove that the thought of carrying out the illegal act originated from the police officer. Furthermore, you must show that you were not inclined to perpetrate the crime.

On the other hand, you can prove that the police officer used undue coercion, intimidation, deceit, or similar tactics to force the offender to perpetrate the offense.

Absence Of Fraudulent Intent

The lack of intent to commit gambling fraud can serve as a legitimate and lawful defense in a criminal court trial, similar to other cases. For a conviction of gambling fraud, the prosecutor must establish beyond a shadow of a doubt that you intended to deceive or cheat.

If the prosecution fails to fulfill their obligations, you could be acquitted or have your charges dismissed. Acting with the intent to deceive for personal gain means you deliberately provided false information to someone unaware of your true motives, aiming to achieve a specific, preplanned result to their disadvantage.

Find a Gambling Fraud Criminal Defense Law Firm Near Me

The legislation on gambling fraud is complex. Unfortunately, individuals may face serious allegations of committing this offense, even without intentionally deceiving or cheating others. If such an event occurs, you should consult a criminal attorney about your situation or seek a better understanding of the matter. If confronted with these accusations, contact our defense lawyers at the Monterey Criminal Attorney immediately. Call us at 831-574-1791 to arrange a consultation appointment.