Home California AG gives scathing opinion on legality of fantasy games

California AG gives scathing opinion on legality of fantasy games

California Attorney General Rob Bonta has given a damning response on the legality of daily sports fantasy games. 

His perspective set out that the fantasy games equal sports betting and are therefore illegal in the Golden State, but the industry remains unmoved and will not be rushed into ceasing operations.

The California Attorney General cast an unapproving position toward the draft and pick ’em-style daily fantasy competitions, “because they involve betting on sporting events”. 

Bonta gave his verdict in accordance with state law, but the fantasy operators insist the contests are a matter of skill and should not be considered as gambling. 

In an official press release from the AG’s office, they presented the request for a legal opinion on the legality of “daily fantasy sports” games. 

The 33-page document set out a thorough response, but ultimately, it ended with the following: 

“We conclude that daily fantasy sports games, including both pick ’em and draft style games, are prohibited by section 337a because they involve betting on sporting events.” 

California is one of 10 states that have not opened up to legalized sports betting, but conversely, fantasy sports have been operating online in the state for more than a decade. 

One significant issue in the debate is the difficulty over how California Attorney General Bonta will enforce his opinion on the legality, or even if that will materialize. Especially as it has been reported by KRCA 3 News Sacramento that California Gov. Gavin Newsom does not agree with the AG’s view. 

“We look forward to meeting with the attorney general’s office to talk through our next steps,” said a spokesperson for the governor.

Bonta opinion would not impact existing state law

DraftKings has asserted its firm position on the issue, in clear disagreement with the California Attorney General, vowing to continue offering its services as it has for the last 13 years.

“Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are games of skill,” the company told ESPN.

“We intend to work with stakeholders, including the office of the attorney general, to try to find an amicable resolution.”

Another operator, Underdog, has said it will continue to offer fantasy sports in the state, and it even took legal action against Bonta to prevent the opinion from public release

That attempt was shut down as a California state judge found that the opinion would not impact existing state law. 

That could be considered a mixed outcome for Underdog, but general satisfaction. The same could not be said for tribal operators who believe the opinion does not go far enough. 

The California Nations Indian Gaming Association (CNIGA) welcomed Bonta’s interpretation and called for immediate enforcement.

“Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?” said the CNIGA chairman in a statement, as reported by KRCA 3 News.

“It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account.”

Image credit: Rolling Stone/X

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The ReadWrite Editorial policy involves closely monitoring the gambling and blockchain industries for major developments, new product and brand launches, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

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