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Penal Code 330 PC is the California statute that makes it a crime to gamble in a banking  or percentage  game. Illegal gaming is a misdemeanor carrying up to 6 months in jail and a fine of up toR$1000.

Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.