California AG declares daily fantasy sports illegal amid controversy
- Attorney General Rob Bonta announced that daily fantasy sports are deemed illegal under California law, citing section 337a.
- Governor Gavin Newsom disagreed with the ruling, advocating for cooperation among stakeholders.
- The decision could lead to potential legal challenges and sparks ongoing debate about the status of fantasy sports in California.
In California, on July 3, 2025, Attorney General Rob Bonta issued a legal opinion stating that daily fantasy sports (DFS) games, including pick'em and draft-style formats, are considered illegal gambling under state law. This declaration follows a request for clarification on the legality of DFS from Assemblymember Tom Lackey. The opinion stipulates that California law prohibits any operation of these games for players physically located in California, regardless of the operators' locations. Furthermore, Bonta's opinion refers to Penal Code section 337a, which explicitly forbids wagering on sports events, indicating that the nature of daily fantasy sports is inherently tied to betting on uncertain outcomes of sporting competitions. Governor Gavin Newsom expressed disagreement with this decision, distancing his office from Bonta's opinion and emphasizing a desire for constructive dialogue among stakeholders regarding this controversial ruling. He indicated that it's likely there might be legislative efforts to explore the legality of certain types of fantasy sports betting in the future. This legal opinion has sparked backlash from fantasy sports associations and operators like FanDuel and DraftKings, who argue that daily fantasy sports mainly rely on skill rather than chance. This perspective is supported by the fact that many states recognize DFS as legal games of skill, contrasting California's viewpoint. Operators in California have indicated their intentions to continue offering services while seeking a resolution with Bonta's office, reflecting the complicated landscape of sports betting and legality in California, a state that has long prohibited traditional sports gambling to protect its citizens from potential gambling harms. Legal challenges are expected to arise against Bonta’s ruling, with operators and industry stakeholders rallying against what they see as an abrupt shift in regulatory stance after years of allowing daily fantasy sports to operate freely in the state.