Underdog Sports, a major fantasy sports operator, has filed a lawsuit in Sacramento Superior Court to prevent California Attorney General Rob Bonta from issuing a legal opinion that could declare digital fantasy sports platforms illegal in the state. The anticipated opinion, expected by July 3, could profoundly affect Underdog and other paid fantasy sports operators in California.
Legal Challenge Against the AG’s Authority
Underdog is seeking a temporary restraining order, a preliminary injunction, and a writ of mandate to stop Bonta from releasing the opinion. The company argues the Attorney General lacks authority under California Government Code Section 12519 to issue such a ruling. That law restricts the AG to answering legal questions related to the duties of the official who requested the opinion, which Underdog says is not the case here.
From Underdog’s court filing:
“Absent relief from this Court, Attorney General Rob Bonta will issue an opinion later this week that will decimate fantasy sports in California. Attorney General Bonta should be enjoined from doing so, not because he is wrong in his views on the legality of fantasy sports — though he certainly is — but because by statute, the Attorney General can only issue opinions on questions of law and can only answer questions that relate to the duties of the official requesting the opinion. Neither is true here.”
Underdog also points out that the request for this opinion came from former State Senator Scott Wilk, who left office in 2024 due to term limits, arguing the request no longer holds legal standing and that issuing an opinion now would set a problematic precedent.
Threat to Business and Industry Impact
The lawsuit claims the pending opinion endangers Underdog’s California business, which accounts for about 10% of its revenue. Legal filings reveal that Bonta’s office plans to use the opinion as a tool for action aimed at pushing Underdog out of the state.
According to Underdog’s filing:
“The Attorney General’s office confirmed that after releasing the opinion, the goal would be to use the threat of an enforcement action—under the interpretation of California law that the Attorney General will impermissibly announce in the opinion—to pressure Underdog into agreeing to leave California entirely.”
Underdog cites a 2016 Texas Attorney General opinion by Ken Paxton, which led FanDuel to pull its DFS offerings from Texas temporarily, as a warning of the potential harm such opinions can cause.
Underdog Confident in Its Legal Position
Despite these challenges, Underdog remains optimistic about the legality of its fantasy sports contests. A company spokesperson said:
“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.”
Underdog’s most scrutinized offering in California is its real-money fantasy pick’em contests.
Attorney David Gringer, representing Underdog, confirmed a June 26 conversation with the AG’s office in which it was stated the opinion would be released by July 3 and would broadly declare digital fantasy sports illegal in California.
Source:
“Underdog Seeks Legal Block on California AG’s Fantasy Sports Ruling”, World Casino Directory. Jul 1, 2025
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