Attorney General Rob Bonta has issued a formal opinion stating that California fantasy sports are unlawful under current state law. Released in early July, the opinion declares these contests as gambling, which is not allowed under California’s sports wagering ban.
Bonta’s legal interpretation suggests that fantasy sports contests from platforms like DraftKings, FanDuel, PrizePicks, and Underdog Fantasy breach California’s Penal Code section 337a, which forbids betting on games of chance. He stated that daily fantasy sports involve monetary stakes on unpredictable events, thus fitting the definition of illegal gambling in California.
This announcement significantly impacts the burgeoning California fantasy sports market, which has millions of users. Although Bonta’s opinion isn’t a court ruling, it empowers state and local law enforcement to take legal action against fantasy sports operators.
The opinion was prompted by a request from Assemblymember Tom Lackey seeking legal clarification. Bonta highlighted that the state’s gambling laws, initially aimed at preventing betting on horse racing, still apply to modern digital platforms promoting fantasy sports contests.
Fantasy sports companies claim their games are skill-based, not gambling. A DraftKings spokesperson stated the company sees its product as a skill competition and intends to keep operating in California. FanDuel and Underdog Fantasy also expressed plans to discuss further with California regulators.
Governor Gavin Newsom’s office acknowledged Bonta’s authority to issue legal opinions but clarified that it doesn’t reflect the administration’s official stance or suggest immediate enforcement.
Tribal gaming interests welcomed the opinion. The California Nations Indian Gaming Association has long argued that commercial fantasy sports platforms infringe on tribal gaming rights and operate illegally, maintaining that California fantasy sports are unlicensed sports betting.
The opinion comes after two failed 2022 ballot measures aimed at legalizing sports betting in California, which voters largely rejected. Bonta’s statement aligns with the outcome of that vote, indicating that any changes to fantasy sports legality in California would require legislative or voter action.
Currently, an estimated 5 to 7 million Californians engage in fantasy sports, many unaware that their activities might be illegal. The legal future of California fantasy sports is uncertain, but Bonta’s opinion could lead to increased scrutiny, enforcement, or calls for regulatory change soon.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
