The legal standing of daily fantasy sports in California is under fresh scrutiny following a decisive opinion from Attorney General Rob Bonta. In a detailed response to Assemblymember Tom Lackey’s inquiry, Bonta argued that platforms like DraftKings and FanDuel are operating in violation of the state’s gambling laws.
According to Bonta, the structure of daily fantasy contests—where users select athletes and win money based on their performance—qualifies as online sports betting, which remains illegal in California. The opinion, while not enforceable by itself, could serve as a powerful reference in legal and policy discussions going forward.
“This is persuasive authority,” said Chris Micheli, a professor at McGeorge School of Law, noting that California courts frequently consider such legal opinions when shaping rulings.
Despite long-standing operations in the state, DFS platforms are now facing mounting pressure to either exit or adapt, even as regulators decide what action, if any, to take next.
Operators Reject Gambling Label, Stand Their Ground
Fantasy sports companies quickly rejected Bonta’s interpretation, maintaining that their contests hinge on player knowledge and strategy—not chance.
DraftKings, which has been active in California for over a decade, defended its model. “Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are games of skill,” the company said in a statement.
FanDuel echoed the desire to continue discussions with state officials, stating, “We look forward to meeting with the attorney general’s office to talk through our next steps.”
Underdog, another DFS operator, tried to prevent the release of Bonta’s opinion by filing a lawsuit earlier this week. Although the case was dismissed by a California judge—who clarified that the opinion does not constitute law—the move highlights the industry’s concern over possible regulatory fallout.
A spokesperson for Underdog confirmed that California accounts for roughly 10% of the company’s total annual revenue. Despite the ruling, the company intends to maintain its operations in the state.
Tribal Leaders Applaud Legal Clarification
While operators pushed back, the California Nations Indian Gaming Association (CNIGA) celebrated the attorney general’s conclusion and called for immediate follow-up action.
“Untold millions if not billions have been illegally wagered over the past decade,” said CNIGA Chairman James May. “Where is the enforcement? Where is the accountability?”
He added, “It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account.”
California has never legalized online sports betting, and past ballot initiatives to do so have failed, most recently in 2022 when voters rejected the proposal by a wide margin. Despite this, daily fantasy platforms have operated for years under what some critics describe as a legal gray area.
Newsom’s Office Calls for Stakeholder Dialogue
The response from Governor Gavin Newsom’s office signaled disagreement with Bonta’s interpretation. However, rather than escalating the dispute, the administration suggested collaboration as the path forward.
“He welcomes a constructive path forward in collaboration with all stakeholders,” a spokesperson for the governor stated.
For now, the legal future of daily fantasy sports in California remains in limbo—poised between an evolving political landscape and a growing call for regulation.
Source:
“California Attorney General Declares Daily Fantasy Sports Illegal”, lcb.org, Jul 5, 2025
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