California AG says daily fantasy sports are illegal under state law

California Attorney General Rob Bonta issued a legal opinion on Thursday stating that daily fantasy sports (DFS), including pick ’em and draft-style contests, constitute illegal sports betting under current state law. According to Bonta's 

According to Bonta, daily fantasy contests are illegal “because they involve betting on sporting events.”

The opinion, while nonbinding, is expected to carry weight with state regulators and prosecutors. It comes amid heightened scrutiny of DFS platforms that have operated in California for more than a decade, including DraftKings, FanDuel, and Underdog Fantasy.

California is one of 10 U.S. states that have not legalized sports betting.

Governor Gavin Newsom’s office distanced itself from Bonta’s opinion and signaled disagreement with the conclusion. “The Attorney General, in his independent capacity, issued this opinion — not the Governor's office,” a spokesperson said. “While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”

DFS operators, for their part, maintain that their contests are legal and skill-based.

“Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are games of skill,” a DraftKings spokesperson said. “We intend to work with stakeholders, including the office of the attorney general, to try to find an amicable resolution.”

FanDuel echoed a similar sentiment. “We look forward to meeting with the attorney general's office to talk through our next steps,” a spokesperson said.

A spokesperson for Underdog Fantasy said the company plans to continue operating in California, which accounts for around 10% of its annual revenue.

Tribal gaming groups welcomed the development and called for stricter oversight. “Untold millions, if not billions, have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?” said James May, chairman of the California Nations Indian Gaming Association. “It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account.”

The legal opinion follows a failed attempt by Underdog to block its release. Sacramento County Superior Court Judge Jennifer K. Rockwell had ruled that the Attorney General’s opinion is advisory in nature and does not carry the force of law, rejecting Underdog Fantasy’s claim that it would immediately disrupt the DFS market in California.