Last Thursday, California Attorney General Rob Bonta released a legal opinion declaring daily fantasy sports (DFS) illegal in the state. Bonta’s opinion argues that DFS games, like those offered by DraftKings and FanDuel, are akin to sports betting, which is prohibited under California law. The opinion was prompted by a request from Assemblymember Tom Lackey, who represents parts of Los Angeles, San Bernardino, and Kern counties, seeking clarity on the legality of these games.
According to Esports Insider, Bonta’s 33-page opinion states that both ‘pick’em’ and ‘draft-style’ DFS games fall under the definition of sports wagering. In pick’em contests, players predict individual athletes’ performances, while draft-style games involve assembling a roster of athletes to compete for cash prizes based on real-world performance. Bonta emphasized that these activities are illegal regardless of whether they are operated from within or outside California, as long as participants are in the state.
Bonta addressed arguments from the industry that DFS is a game of skill, not chance, and should be exempt from gambling laws. However, he rejected this distinction, citing California Supreme Court precedent that betting may involve skill but still constitutes illegal gambling if based on an uncertain future event, such as a sports competition.
The opinion does not immediately change state law or force operators to cease activity, but it sets a significant precedent for potential enforcement actions by local prosecutors. The California Department of Justice has indicated that companies are expected to comply with the law, though no specific timeline for enforcement has been announced.
Governor Gavin Newsom publicly disagreed with Bonta’s interpretation, expressing hope for a collaborative approach among stakeholders to address the issue. Meanwhile, Fox LA reports that fantasy sports companies and industry associations plan to continue advocating for the legality of DFS and may challenge the opinion in court. With California accounting for a substantial portion of the national DFS market, Bonta’s ruling marks a pivotal moment for the industry and its users in the state.
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