A California judge has rejected Underdog’s request for a temporary restraining order (TRO), which aimed to stop Attorney General (AG) Rob Bonta from issuing an opinion against daily fantasy sports (DFS).
An opinion against DFS is expected in the imminent future, and Underdog tried to get a head start on the fallout by filing a lawsuit on Tuesday.
Judge Jennifer Rockwell denied Underdog’s motion for a TRO, noting that the company has had “ample opportunity” to challenge the AG’s right to issue an opinion since Sen. Scott Wilk appealed for clarity on the legal status of DFS.
Wilk sent a letter to the California Department of Justice in October 2023, stating, “Daily fantasy sports appears to be a game of chance not otherwise permitted by the laws of California.” Wilk’s term in the Senate came to an end last year, but the issue has been taken up by Assemblyman Tom Lackey, who has also urged a clear legal ruling on DFS.
No Law Change For Now
In her judgment, Rockwell also emphasized that even if Bonta is to issue an opinion, it would not in itself change any laws related to DFS. As a result, Underdog has not demonstrated that it will be harmed by the opinion.
“The court stated that the Attorney General’s forthcoming opinion on fantasy sports ‘does not effect any change in law’ and does ‘not carry the weight of law.’ As a result, the court explained that the protective relief we sought was not necessary,” an Underdog spokesperson told SBC Americas on Wednesday.
The company has continued to offer DFS in Illinois despite the AG there issuing an opinion against its legality. Attorney General Kwame Raoul issued an informal opinion in 2023 declaring that DFS pick’em contests are a form of unlicensed sports betting.
Raoul stated, “Fantasy contests where participants bet on outcomes of individual player performances against the house are not protected under Illinois’ fantasy sports exemption.”
PrizePicks and other operators stopped offering pick’em DFS in Illinois following the opinion, but Underdog has continued offering the games.
PrizePicks Withdraws Pick’em, Underdog Holds Firm
In anticipation of Bonta issuing a similar opinion in California, PrizePicks has already withdrawn its pick’em against the house game in California. Players can still use the Arena feature, which allows users to predict the performances of players against each other rather than a line set by the platform.
Underdog appears to have no intention of changing its offerings, as a company spokesperson commented, “We thank the court for that clarity and look forward to continuing to offer our fantasy contests in California.”
The spokesperson went on to comment, “Any potential opinion is flawed because it has to rely on factual determinations the opinion process cannot and should not resolve, according to California law,”
“The last two Attorneys General, Kamala Harris and Xavier Beccera, did not issue opinions, and Attorney General Bonta has been in office for more than four years without questioning fantasy sports games.
“We are optimistic the law will be followed and are confident in the legality of fantasy sports in California. If a negative opinion is issued, fantasy sports will prevail on the merits, no different than in New York and Illinois, where courts rejected the similarly wrong opinions of those states’ attorneys general.”
The company was previously forced to pay a $17.5 million fine in New York for claims that its products were a form of unlicensed sports betting. The platform relaunched without the against-the-house pick’em product in May this year.
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.
