SACRAMENTO, CA — In a move that could reshape the landscape of fantasy gaming in California, Attorney General Rob Bonta issued a legal opinion Thursday stating that daily fantasy sports (DFS) games — including popular “pick ‘em” and “draft style” contests — constitute illegal sports wagering under state law.
Bonta, alongside Deputy Attorney General Karim Kentfield, concluded that DFS games violate California’s Penal Code Section 337a, which prohibits gambling on sporting events — with the lone exception being horse racing.
The opinion pushes back on the industry’s long-standing argument that DFS is a game of skill, not chance. Bonta’s legal brief says “betting or wagering may involve skill or judgment,” but the key issue is whether players win or lose based on an uncertain future event — like a real-world sports game.
“Such games constitute wagering on sports in violation of Penal Code section 337a,” the opinion reads.
Operators Like DraftKings, FanDuel, and Underdog Plan to Stay
Despite the ruling, major DFS operators, including FanDuel, DraftKings, and Underdog, have indicated they will continue operations in California while seeking resolution through dialogue with the AG’s office.
Underdog Sports had tried to block the opinion in court, calling it an “existential threat” to its business. However, a judge denied their emergency injunction, stating the company had ample time to raise objections.
Not Law—Yet
Bonta’s opinion is advisory, not enforceable law — but it could lay the groundwork for legislation banning daily fantasy sports altogether.
“It would be very surprising if there’s not some legislation to clarify or legalize this,” said Assemblymember Tom Lackey (R-Palmdale), who requested the opinion.
Voters Already Rejected Sports Betting in 2022
California remains one of 11 U.S. states that does not allow any form of sports betting, despite a failed push in 2022 to legalize it via two voter propositions.
Native American tribes remain a major stakeholder, and FanDuel/DraftKings reps recently appeared at an Indian Gaming Association convention to build tribal partnerships.
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Backlash from Industry and Governor Newsom
Gov. Gavin Newsom distanced himself from the AG’s stance, with his office stating:
“While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”
The Fantasy Sports & Gaming Association (FSGA) blasted the decision, saying it is “completely out of step” with 26 other states that classify DFS as legal games of skill.
“More than 6 million Californians played fantasy sports last year,” the FSGA stated. “They expect their elected officials to protect this growing industry.”
Do You Think Fantasy Sports Should Be Legal in California?
Should California rewrite its laws to legalize daily fantasy sports? Or should it hold the line on what counts as gambling? Drop your thoughts in the comments or join the discussion at ridgecrestpact.org.
