Jackpot events where players are likely to win a multi thousand dollar for losing are considered to be illegal jackpots in California. They are considered to be classed under illegal lottery gaming in California.

Jackpot for losers is pretty much a threat for problem gamblers. They tend to bet based on their past experiences of having lost and they tend to continue to loose more.

The card rooms in the casinos providing with such losers jackpots tend to rake a $1 from every pot played and thereby they make the money they have declared to give for the jackpot. The special punch to the losers who are winners of the jackpot is where the loser should have folded with an exceptionally strong hand!

Bill Lockyer, Attorney General, had earlier warned the casinos in 2005 that such jackpots which are given to the players who are required to be having to pay some fee in the game and this kind of jackpot is illegal per state laws.

The underlying legal policy is exactly similar to what McDonald did with regards to promoting the Monopoly game regardless of them having paid or not for playing in the game. The jackpot was given away regardless of the participants buying anything! A part of the business was given for free.

A law suit has been filed in this regard by two poker players who have indicated in their statement that the Bicycle Club, Hollywood Park, Commerce, Hustler, and Hawaiian Gardens casinos did not permit them to participate and compete for the jackpot, if they did not play in the tables which required a $1 per pot fee! Notably, the ads of the casinos view out that no payment is required to participate in the jackpot; however, Kelegian, managing general partner of the Bicycle Casino in Bell Gardens, stated "We have always had no purchase necessary." He remarked that "The Bike", which is the official name for the loser jackpot, is very famous and most preferred between players.