Online fantasy sports platforms may soon be illegal in California

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California Attorney General Rob Bonta is soon expected to deem all online fantasy sports platforms illegal in the state, multiple sources confirmed to KCRA 3.Within a matter of days, Bonta is expected to release a legal opinion with more details and why he came to this conclusion, according to several sources unauthorized to speak publicly about the decision. The opinion, which KCRA 3 is the first to report, could put billions of dollars at risk for the companies that have been operating in the state for a decade.Bonta’s office did not respond to a request for comment on Wednesday. In a statement to KCRA 3, the Coalition for Fantasy Sports said the opinion would be devastating news to the millions of California sports fans who love to play fantasy sports."We hope the Attorney General's office will consider the views of sports fans across the state before making a decision. Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away," a spokesman said. 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 grey area.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 that could help them win a prize. On Monday, the California Nations of Indian Gaming Associations and Tribal Alliance of Sovereign Indian Nationals sent a letter to California lawmakers, warning them that fantasy sports operators may be working to push legislation regarding their legal status in the state. The group urged lawmakers to wait for Bonta’s opinion to be released. Read that letter here. "While we have not yet seen the Attorney General’s pending opinion, we are happy to hear that Attorney General Rob Bonta is standing up for the people of California by ensuring that state laws are followed," said James Siva, the chairman of CNIGA, in a statement to KCRA 3. "Illegal and unregulated gaming has been a problem in California for decades. These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling. We are glad to see Attorney General Bonta address the issue and look forward to lawbreakers being held to account." In 2023, Republican State Senator Scott Wilk sent a letter to the California Department of Justice requesting the 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 has been following up with the California Department of Justice about the request for the legal opinion, but said he did not know exactly what the opinion would be or when it would be released. "I was very interested in making sure that the people and their opinion was at least acknowledged," Lackey said. "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." He commended Bonta for his willingness to weigh in on the issue. Requests for the California Attorney General’s legal opinion on online fantasy sports have gone unanswered and date back to 2015, when Kamala Harris was Attorney General."I think it's credible. I think it's important that he's responding," Lackey said. The California Department of Justice is expected to release the opinion by July 3rd. Adjunct McGeorge School of Law Professor and longtime Sacramento lobbyist Chris Micheli said the issue will likely be decided in court. "If there are any alleged activities that violate the law, we would expect a lawsuit to be filed by the attorney general to enforce his interpretation of the law," Micheli said. "Ultimately, a court will decide if the AG's opinion is the right one, but courts in California give a fair amount of deference to the Attorney General." "It's a large hypocrisy," said SacTown Sports radio talk show host Carmichael Dave, who noted now is still a busy time for fantasy sports with baseball and golf. "I'm not a gambler and I don't encourage gambling, but people are going to think, 'why can I bet on this latest crypto scheme by opening up coin base, why can I bet my life savings on these stock apps? But I can't bet on whether or not the giants or the Niners or the Kings are going to win a ball game?'" 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

SACRAMENTO, Calif. —

California Attorney General Rob Bonta is soon expected to deem all online fantasy sports platforms illegal in the state, multiple sources confirmed to KCRA 3.

Within a matter of days, Bonta is expected to release a legal opinion with more details and why he came to this conclusion, according to several sources unauthorized to speak publicly about the decision. The opinion, which KCRA 3 is the first to report, could put billions of dollars at risk for the companies that have been operating in the state for a decade.

Bonta’s office did not respond to a request for comment on Wednesday.

In a statement to KCRA 3, the Coalition for Fantasy Sports said the opinion would be devastating news to the millions of California sports fans who love to play fantasy sports.

"We hope the Attorney General's office will consider the views of sports fans across the state before making a decision. Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away," a spokesman said.

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 grey area.

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 that could help them win a prize.

On Monday, the California Nations of Indian Gaming Associations and Tribal Alliance of Sovereign Indian Nationals sent a letter to California lawmakers, warning them that fantasy sports operators may be working to push legislation regarding their legal status in the state. The group urged lawmakers to wait for Bonta’s opinion to be released. Read that letter here.

"While we have not yet seen the Attorney General’s pending opinion, we are happy to hear that Attorney General Rob Bonta is standing up for the people of California by ensuring that state laws are followed," said James Siva, the chairman of CNIGA, in a statement to KCRA 3. "Illegal and unregulated gaming has been a problem in California for decades. These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling. We are glad to see Attorney General Bonta address the issue and look forward to lawbreakers being held to account."

In 2023, Republican State Senator Scott Wilk sent a letter to the California Department of Justice requesting the 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 has been following up with the California Department of Justice about the request for the legal opinion, but said he did not know exactly what the opinion would be or when it would be released.

"I was very interested in making sure that the people and their opinion was at least acknowledged," Lackey said. "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."

He commended Bonta for his willingness to weigh in on the issue. Requests for the California Attorney General’s legal opinion on online fantasy sports have gone unanswered and date back to 2015, when Kamala Harris was Attorney General.

"I think it's credible. I think it's important that he's responding," Lackey said.

The California Department of Justice is expected to release the opinion by July 3rd.

Adjunct McGeorge School of Law Professor and longtime Sacramento lobbyist Chris Micheli said the issue will likely be decided in court.

"If there are any alleged activities that violate the law, we would expect a lawsuit to be filed by the attorney general to enforce his interpretation of the law," Micheli said. "Ultimately, a court will decide if the AG's opinion is the right one, but courts in California give a fair amount of deference to the Attorney General."

"It's a large hypocrisy," said SacTown Sports radio talk show host Carmichael Dave, who noted now is still a busy time for fantasy sports with baseball and golf.

"I'm not a gambler and I don't encourage gambling, but people are going to think, 'why can I bet on this latest crypto scheme by opening up coin base, why can I bet my life savings on these stock apps? But I can't bet on whether or not the giants or the Niners or the Kings are going to win a ball game?'"

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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