Attorney General Rob Bonta has issued a formal opinion declaring that California fantasy sports are illegal under current state law. The opinion, released in early July, states that these contests constitute gambling and are not permitted under California’s long-standing prohibition on sports wagering.
According to Bonta’s legal interpretation, fantasy sports contests offered by major platforms like DraftKings, FanDuel, PrizePicks, and Underdog Fantasy violate California’s Penal Code section 337a, which prohibits betting on games of chance. Bonta concluded that daily fantasy sports involve players staking money on uncertain future events, meeting the legal definition of illegal gambling in the state.
This development deals a significant blow to the rapidly growing California fantasy sports industry, which includes millions of users. While Bonta’s opinion is not an enforceable court ruling, it gives state and local law enforcement the authority to initiate legal action against fantasy sports operators.
The opinion was issued in response to a request from Assemblymember Tom Lackey, who had asked for legal clarity on the matter. In his response, Bonta emphasized that the state’s gambling laws were originally enacted to prevent betting on horse racing and similar activities, but still apply to modern digital platforms that promote fantasy sports contests.
Fantasy sports companies argue that their games rely on skill and are therefore not gambling. A spokesperson for DraftKings said the company views its product as a skill-based competition and plans to continue operations in California. FanDuel and Underdog Fantasy also signaled that they will engage in further discussions with California regulators.
Governor Gavin Newsom’s office responded by acknowledging Bonta’s authority to issue legal opinions but noted that it does not reflect the administration’s official position or signal immediate enforcement action.
Tribal gaming interests, however, praised the opinion. The California Nations Indian Gaming Association has long argued that commercial fantasy sports platforms infringe on tribal gaming rights and operate outside of legal boundaries. The group reiterated its belief that California fantasy sports constitute unlicensed sports betting.
The opinion follows the failure of two ballot measures in 2022 that aimed to legalize sports betting in California. Both were overwhelmingly rejected by voters, reinforcing the state’s strict stance on gambling. Bonta’s declaration aligns with the results of that vote and signals that any changes to the legality of California fantasy sports would require legislative or voter action.
Currently, an estimated 5 to 7 million Californians participate in fantasy sports, many of them unaware that their activities could be considered illegal. The legal landscape for California fantasy sports remains uncertain, but Bonta’s opinion may lead to further scrutiny, enforcement, or a push for regulatory reform in the near future.
