California’s Attorney General Rob Bonta has released his awaited opinion on daily fantasy sports (DFS), declaring them illegal under California law.
In the opinion released on July 3, Bonta stated, “California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located. Such games constitute wagering on sports in violation of Penal Code section 337a.”
Bonta highlights pick’em and draft-style games in particular as being in violation of the Penal Code, which states, “Any person who… lays, makes, offers, or accepts any bet or wager upon the result of any trial, or purported trial, or contest… of skill, speed or power of endurance of… persons or between persons and animals… is guilty of a crime.”
AG Cites Other State Regulator Rulings
Bonta also claimed that other states have reached the same judgment about DFS. He wrote, “Our conclusion is consistent with the view of out-of-state regulators. Regulators in Virginia, Arizona, Wyoming, and Florida, for example, have all concluded that state laws regulating sports wagering apply to pick’em.
“As the Arizona Department of Gaming explained, the games are simply a type of “proposition bet[ting].”42 We are not aware of any out-of-state regulator to reach a contrary conclusion.”
Arizona sports betting rules prohibit pick’em contests, but does allow draft-style games through licensed operators. New York and Illinois have also made similar judgments related to DFS. Illinois’ Attorney General released an opinion in 2023, stating, “Fantasy contests where participants bet on outcomes of individual player performances against the house are not protected under Illinois’ fantasy sports exemption.”
Some operators stopped offering pick’em contests in Illinois and New York. PrizePicks has also removed the option for users in California, although other operators have not made any changes as yet.
Governor And Operators Disagree With AG Opinion
California Gov. Gavin Newsom has already distanced himself from Bonta’s opinion. “While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders,” a spokesperson told a California reporter.
DFS operators also, unsurprisingly, disagreed with the judgment that they are operating illegally. JT Foley, Executive Director of the Coalition for Fantasy Sports said, “We agree with Governor Newsom — AG Bonta got it wrong.”
The coalition represents DFS operators PrizePicks, Underdog, Betr, Dabble and Splash Sports. Underdog made the preemptive move of suing the AG even before the opinion came out, but the lawsuit was rejected by a judge yesterday. Judge Jennifer Rockwell stated that the opinion “does not change any law” and Underdog had not demonstrated that it was going to be damaged by the release of the opinion.
Foley’s statement continued, “As the Court said yesterday, this opinion ‘does not effect any change in law’ and does ‘not carry the weight of law.’ The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized as they specifically declined any similar action.
“We are hopeful the Attorney General heeds the Governor’s call to find a constructive solution that preserves the games that California sports fans love.”
DraftKings and FanDuel Voice Their Opinions
Leading US sportsbooks and DFS operators, DraftKings and FanDuel also expressed their disagreement to the ruling and hope that the issue can be resolved amicably.
A DraftKings spokesperson commented, “DraftKings respectfully disagrees with the interpretation expressed with respect to peer-to-peer fantasy sports contests in the non-binding advisory opinion issued by the Attorney General of California. We believe peer-to-peer fantasy sports contests, including Salary Cap, Pick 6 and Best Ball, are legal in California, and we intend to continue offering them.”
The statement went on to say, “We intend to work with stakeholders, including the Office of the Attorney General, to try to find an amicable resolution.”
FanDuel echoed that statement by commenting, “We look forward to meeting with the Attorney General’s office to talk through our next steps.”
The two platforms along with other sportsbooks that are members of the Sports Betting Alliance (SBA) continue to put pressure on tribes and lawmakers in the state in a bid to legalize California sports betting.
However, the stance taken against DFS signals a move in the wrong direction as far as proponents of sports betting are concerned.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
