California Attorney General Rob Bonta says his office will take enforcement action against daily fantasy sports platforms that are still operating in the state, after a recent legal opinion found those platforms are breaking the law.
Speaking in an interview with KCRA 3, Bonta explained that his office was required to issue the opinion after getting formal requests from two state lawmakers. He stressed that it wasn’t a personal judgment call and that they were legally obligated to respond.
California AG says fantasy sports platforms will face action
“When the AG of the State of California gets a formal request for a legal opinion, as we did here from two separate legislators, it’s our duty, not our discretion, to respond,” Bonta said. “It is an objective, straightforward description of what existing law is.”
Bonta’s legal opinion found that some types of online daily fantasy sports, especially those run by big names like DraftKings and FanDuel, amount to illegal gambling under California law. While these games are often promoted as games of skill, the Attorney General’s office determined they actually qualify as gambling because of how they’re structured and how much they depend on chance to win.
“We expect our legal opinion to be followed and complied with by everyone governed by it.” – Rob Bonta, California’s Attorney General
“It’s a violation of the law, as our legal opinion has indicated,” Bonta said. “To provide a platform in the state of California to to California consumers for the daily fantasy sports at issue and the opinion is the first thing that we’ve been asked to provide. And we have, as you know, and the next step is our enforcement and laws are meant to be enforced.”
Despite the opinion, major daily fantasy sports operators have continued to offer contests to California residents. That led reporters to ask if Bonta’s office plans to take further action. His answer was unequivocal.
“Absolutely,” he said, confirming that enforcement efforts are now underway.
Hence the state’s stance now appears to be hardening.
Daily fantasy sports are in the firing line
Industry watchers say enforcement could take several forms, from cease-and-desist letters to civil fines or even criminal charges. So far, though, Attorney General Bonta hasn’t said exactly what steps his office will take.
The opinion could also bring daily fantasy sports back into the spotlight at the state Capitol, where lawmakers have tried and failed in the past to pass legislation to legalize and regulate the industry.
Just recently, a Sacramento County Superior Court judge denied Underdog Sports LLC’s emergency attempt to block Bonta from issuing the opinion.
In court filings reviewed by ReadWrite, Underdog argued Bonta had no legal basis to weigh in, writing that he should not be allowed to issue an opinion “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.”
In response to the legal developments, the company shifted its California DFS pick’em contests to a peer-to-peer format.
In the meantime, Bonta still made clear that fantasy sports operators should not expect leniency.
“We expect our legal opinion to be followed and complied with by everyone governed by it,” he said.
Featured image: KCRA 3 via YouTube / Canva
