Home California judge rejects Underdog Sports’ bid to block daily fantasy sports legal opinion

California judge rejects Underdog Sports’ bid to block daily fantasy sports legal opinion

A Sacramento County Superior Court judge has rejected Underdog Sports LLC’s emergency request to stop California Attorney General Rob Bonta from issuing a legal opinion on daily fantasy sports, handing the company a major procedural setback in its challenge.

In an order issued Wednesday July 2 Judge Jennifer K. Rockwell denied Underdog’s Ex Parte Application for a Temporary Restraining Order and Preliminary Injunction saying the petitioners “have not established that they will suffer any harm as a result of the issuance of Opinion No. 23-1001.”

Underdog Sports had sought to “temporarily enjoin the Attorney General ‘from issuing Opinion No. 23-1001, or from issuing any similar opinion pertaining to the legality of daily fantasy sports platforms under California law[.]’”

In other words Judge Rockwell noted that Underdog had plenty of time to bring their challenge earlier especially during the more than 18 months since Senator Scott Wilk asked Bonta to review the legality of daily fantasy sports so this did not qualify as an “emergency.”

“To the degree that Petitioners challenge the Attorney General’s authority to issue Opinion No. 23-1001, which they acknowledge has been pending for more than 18 months, Petitioners had ample opportunity to raise such a challenge at any time after the Attorney General’s acceptance of the question posed by Senator Wilk in October of 2023,” the court stated. “The fact that Petitioners delayed filing this action does not constitute a basis for ex parte relief.”

Judge Rockwell also stressed that the Attorney General’s opinions do not carry the force of law. The court explained that “the Attorney General’s issuance of an opinion pursuant to Government Code section 12519 does not effect any change in the law.”

Underdog Sports says issuing legal opinion on DFS is ‘wrong’

In its own petition seen by ReadWrite, Underdog argued that Bonta 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.”

The company claimed that Bonta’s forthcoming opinion exceeds his statutory authority, as it involves applying California gambling law to specific facts about daily fantasy sports rather than addressing a “pure question of law,” and the request from then-Senator Wilk no longer relates to the duties of an official still in office.

“[The] request seeks a pre-enforcement shot across the bow—a flexing of executive branch muscle in a way that is designed to impair the businesses of Underdog and others in the fantasy sports industry.” – Underdog Sports LLC vs California Attorney General Rob Bonta

As a result the court denied the request outright. This means that Bonta can move forward with releasing his opinion which looks at legal questions around daily fantasy sports operations in California. Underdog Sports had argued the opinion could harm its business but the court said there was no imminent harm that justified emergency action.

Legal expert Daniel Wallach said Underdog Sports could still appeal the denial of the temporary restraining order and ask for expedited review by California’s Third District Court of Appeal; however, it may be difficult because the Attorney General is expected to publish his opinion imminently.

ReadWrite has reached out to Underdog Sports LLC for comment.

Featured image: Underdog LLC

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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.

Suswati Basu
News Editor

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her…

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