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California Attorney General Rob Bonta released a legal opinion Thursday that indicates daily online fantasy sports platforms in the state are now illegal.
Bonta’s 33-page opinion states that fantasy sports platforms are illegal because they involve betting on sports. The seemingly only applies to daily fantasy sports, but not season-long fantasy sports leagues.
“Like traditional sports wagering, daily fantasy sports games enable participants to win or lose money based on the outcome of sporting events played by third-party athletes,” the opinion says.
“Just because the operator is not betting against the players does not mean that the players are not betting against each other.”
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Sports gambling has been illegal in California, but fantasy sports has been a legal gray area. But online fantasy sports platforms have operated in the state for more than a dozen years, and the product has generated billions of dollars in that time.
In a 2022 state election, voters overwhelmingly rejected a measure to legalize online sports betting. Then in 2023, California GOP state lawmaker Scott Wilk sent a letter to the state’s Department of Justice, requesting a legal opinion on daily fantasy sports.
Now, that opinion has been released, and it could bring about disruption to the state’s fantasy sports industry.
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