California Attorney General Rob Bonta has officially released a legal opinion indicating all daily online fantasy sports platforms in the state are illegal. The opinion, which KCRA 3 first reported last week, is expected to set up likely court action and a future legislative battle between fantasy sports operators and tribes that have been questioning the legality of online fantasy sports platforms in California. The attorney general states that the fantasy sports platforms are illegal because they involve betting on sports. The decision specifically gives a determination on daily fantasy sports, not season-long fantasy sports. The 33-page document noted the request that prompted Bonta's opinion specifically asked for a decision on the daily fantasy platforms. Underdog Fantasy, one of the largest daily fantasy sports platforms in the country, tried to sue to stop Bonta from releasing the opinion earlier this week. The judge in that case suggested the opinion would not change state law. The company said the state accounts for about 10% of its annual revenue. Minutes after Bonta released the opinion, Gov. Gavin Newsom's office said the governor does not agree. "The Attorney General, in his independent capacity, issued this opinion — not the Governor’s office," noted Izzy Gardon, a spokesman for Gov. Newsom. "While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders."While online sports gambling specifically is illegal in California, tribes and some lawmakers have asked for the legal opinion, noting that fantasy sports is a legal gray area. Online fantasy sports platforms have been operating in California for more than a decade and generate billions of dollars. Through online fantasy platforms, users pay to enter a contest and can win money or a prize depending on the professional athletes they pick and how well the athletes perform. During football or baseball season, for example, participants can use their knowledge of the athletes and the sport to pick their fantasy team of players who could help them win a prize. In 2023, Republican State Sen. Scott Wilk sent a letter to the California Department of Justice requesting a legal opinion on daily fantasy sports. It followed the 2022 election in which voters overwhelmingly rejected a measure to legalize online sports betting.Wilk noted that when it comes to online fantasy sports, how well the athletes perform during a game is completely out of the participant’s control and could be a game of chance.Wilk noted in his letter that under California law, no one may operate “any game of chance” without the required federal, state and local licenses.“Daily fantasy sports appears to be a game of chance not otherwise permitted by the laws of California,” Wilk wrote.Read Wilk's letter here.Wilk termed out of the State Senate last year, and Republican Assemblyman Tom Lackey took over the effort to get legal clarity.Lackey confirmed to KCRA 3 he had been following up with the California Department of Justice about the request for the legal opinion."I was very interested in making sure that the people and their opinion was at least acknowledged," Lackey said in an interview with KCRA last week. "We followed up on that, and we wanted the legal opinion to make sure that it wasn't in conflict with what the people want."Bonta is California's first attorney general to weigh in on the issue. Requests for the legal opinion on online fantasy sports had gone unanswered and date back to 2015, when Kamala Harris was attorney generalSee more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SACRAMENTO, Calif. —
California Attorney General Rob Bonta has officially released a legal opinion indicating all daily online fantasy sports platforms in the state are illegal.
The opinion, which KCRA 3 first reported last week, is expected to set up likely court action and a future legislative battle between fantasy sports operators and tribes that have been questioning the legality of online fantasy sports platforms in California.
The attorney general states that the fantasy sports platforms are illegal because they involve betting on sports. The decision specifically gives a determination on daily fantasy sports, not season-long fantasy sports. The 33-page document noted the request that prompted Bonta's opinion specifically asked for a decision on the daily fantasy platforms.
Underdog Fantasy, one of the largest daily fantasy sports platforms in the country, tried to sue to stop Bonta from releasing the opinion earlier this week. The judge in that case suggested the opinion would not change state law. The company said the state accounts for about 10% of its annual revenue.
Minutes after Bonta released the opinion, Gov. Gavin Newsom's office said the governor does not agree.
"The Attorney General, in his independent capacity, issued this opinion — not the Governor’s office," noted Izzy Gardon, a spokesman for Gov. Newsom. "While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders."
While online sports gambling specifically is illegal in California, tribes and some lawmakers have asked for the legal opinion, noting that fantasy sports is a legal gray area. Online fantasy sports platforms have been operating in California for more than a decade and generate billions of dollars.
Through online fantasy platforms, users pay to enter a contest and can win money or a prize depending on the professional athletes they pick and how well the athletes perform. During football or baseball season, for example, participants can use their knowledge of the athletes and the sport to pick their fantasy team of players who could help them win a prize.
In 2023, Republican State Sen. Scott Wilk sent a letter to the California Department of Justice requesting a legal opinion on daily fantasy sports. It followed the 2022 election in which voters overwhelmingly rejected a measure to legalize online sports betting.
Wilk noted that when it comes to online fantasy sports, how well the athletes perform during a game is completely out of the participant’s control and could be a game of chance.
Wilk noted in his letter that under California law, no one may operate “any game of chance” without the required federal, state and local licenses.
“Daily fantasy sports appears to be a game of chance not otherwise permitted by the laws of California,” Wilk wrote.
Wilk termed out of the State Senate last year, and Republican Assemblyman Tom Lackey took over the effort to get legal clarity.
Lackey confirmed to KCRA 3 he had been following up with the California Department of Justice about the request for the legal opinion.
"I was very interested in making sure that the people and their opinion was at least acknowledged," Lackey said in an interview with KCRA last week. "We followed up on that, and we wanted the legal opinion to make sure that it wasn't in conflict with what the people want."
Bonta is California's first attorney general to weigh in on the issue. Requests for the legal opinion on online fantasy sports had gone unanswered and date back to 2015, when Kamala Harris was attorney general
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
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