- California Attorney General Rob Bonta released his long-awaited opinion on the legality of DFS contests
- In his opinion, Bonta says DFS contests are prohibited by California law
- DFS operators have offered contests in California’s gray market for years
California Attorney General Rob Bonta has declared it is his legal opinion that daily fantasy sports contests are prohibited under California law.
Bonta released his long-awaited opinion on the legality of daily fantasy sports (DFS) contests this afternoon, putting the California’s DFS market into question as operators now have to determine if it is worth continuing to do business in the state.
“We conclude that daily fantasy sports games, including both pick’em and draft style games, are prohibited by section 337a because they involve betting on sporting events,” Bonta wrote in the opinion.
Opinion, Not Law
Bonta’s opinion on the legality of DFS in the state is just that, an opinion, not an actual law. The opinion is in response to a 2023 request from Sen. Scott Wilk (R-21), who left the state legislature in 2024. The Attorney General did not issue an opinion in response to his request prior to him leaving the legislature.
“Yes, 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,” he noted.
Bonta’s opinion is quite clear that offering DFS contests in California is against state law.
He notes it is a crime if a person “[l]ays, makes, offers or accepts any bet or bets, or wager or wagers, upon the result, or purported result, of any trial, or purported trial, or contest, or purported contest, of skill, speed or power of endurance of person or animal, or between persons, animals, or mechanical apparatus.”
Bonta even went so far as to note there is no difference in his opinion for a pick’em or draft style DFS games, declaring both have no place in the state.
Governor Does Not Agree, Neither Does DFS Coalition
Interestingly, California Gov. Gavin Newsom (D) seemingly did not agree with Bonta’s opinion, According to Ashley Zavala of KCRA 3 News.
Zavala said Newsom’s office released the following statement to her:
“The AG, in his independent capacity, issued this opinion — not the Governor’s office. While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”
JT Foley, Executive Director of the Coalition for Fantasy Sports, supported Newsom’s opinion and declared Bonta “got it wrong.”
“We agree with Governor Newsom — AG Bonta got it wrong. 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,” he said in a released statement.
DraftKings, FanDuel Have Their Say
Both FanDuel and DraftKings touched on Bonta’s DFS opinion.
“We look forward to meeting with the Attorney General’s office to talk through out next steps,” a FanDuel spokesperson told Saturday Down South.
A DraftKings spokesperson went as far as to say the company still intends to offer the contests in California despite Bonta’s opinion.
“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 – as we have done without challenge or issue for over 13 years. Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are legal games of skill. In addition, the highest courts in Illinois and New York previously held that peer-to-peer fantasy sports contests are legal games of skill. We intend to work with stakeholders, including the Office of the Attorney General, to try to find an amicable resolution,” the spokesperson said.
Tribes Have Their Say
The California Nations Indian Gaming Association (CNIGA) commended Bonta on his opinion. CNIGA noted now is the time for California to enforce Bonta’s legal opinion.
“While the California Nations Indian Gaming Association (CNIGA) commends Attorney General Rob Bonta for standing up for the rule of law in California, it is also very clear that California has long turned a blind eye to illegal gambling—at the direct expense of tribal governments. Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability? It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account,” James Siva, CNIGA Chairman, said in a released statement.
The tribal association decried illegal gaming in California and applauded Bonta for his efforts to keep consumers safe in the Golden State.
“Illegal gaming denies consumers real protections and safeguards against illicit practices such as fraud and underage gambling. Strong enforcement against these illegal practices is the only way to ensure that gaming in California remains well-regulated and thus safe for consumers,” Siva said.
So, What Happens Now?
With Bonta’s opinion finally being released, all eyes are now on DFS operators to see if they will leave California.
As of yesterday, an Underdog spokesperson told Saturday Down South the company looks forward to continuing to offer DFS contests in the state, even after a Sacramento County Superior Court Judge declined the company’s temporary restraining order to keep Bonta from releasing his opinion.
“The court stated that the Attorney General’s forthcoming opinion on fantasy sports ‘does not effect any change in the law’ and does ‘not carry the weight of law.’ As a result, the court explained that the protective relief we sought was not necessary. We thank the court for that clarity and look forward to continuing to offer our fantasy contests in California.”
Will operators such as Underdog, PrizePicks, FanDuel, and DraftKings keep offering contests in the state, despite the opinion from Bonta? Daniel Wallach, a gaming attorney, said this would be an act of “self-sabotage” for any DFS operator.
Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.
