On July 3, 2025, California Attorney General Rob Bonta issued a formal legal opinion determining that daily fantasy sports (DFS) contests – including pick’em and draft-style games offered by platforms such as DraftKings, FanDuel, and Underdog—are considered illegal gambling under state law. The opinion was published in response to a request from Assemblymember Tom Lackey, in accordance with Government Code section 12519, which authorizes the state’s Department of Justice to provide formal interpretations of existing statutes.
According to the State of California Department of Justice – Rob Bonta AG official press release, the 33-page opinion (labeled 23-1001) concluded that DFS contests involve betting on the outcomes of real-world sporting events and therefore fall under California’s Penal Code restrictions against online sports wagering. While operators often promote these games as skill-based, the opinion found that they align with the legal definition of gambling, since players place monetary wagers based on athlete performance and may win or lose money depending on the results.
“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,” Bonta wrote. The opinion further argued that even though the operators themselves do not directly wager, the contests still constitute betting since participants compete against each other for real-money prizes.
Industry Pushback: Operators Refuse to Back Down
Following the release of the opinion, leading DFS operators signaled no intention to withdraw from the California market. DraftKings issued a statement challenging the interpretation, saying it “respectfully disagrees” with the AG’s stance and asserting the legality of peer-to-peer fantasy contests. “We believe peer-to-peer fantasy sports contests are legal in California, and we intend to continue offering them, as we have done without challenge or issue for over 13 years,” the company said.
FanDuel echoed this sentiment, expressing interest in engaging with the Attorney General’s office to discuss the matter further. Meanwhile, Underdog—a rising DFS operator—reiterated its intention to continue operations in the state. The company had previously filed a lawsuit attempting to block the release of the opinion, describing it as an “imminent, existential threat” to its business model. However, the suit was dismissed by a California judge, who ruled that the opinion does not equate to new law and does not cause irreparable harm.
Underdog maintains that its contests rely on skill and pointed to legal rulings in other states, such as New York and Illinois, where courts determined DFS does not qualify as gambling. A company representative noted that California contributes roughly 10% to Underdog’s total yearly revenue.
Legal Weight and Tribal Response
Although the opinion issued by the Attorney General is not legally binding, it carries what is known as “persuasive authority” in California’s judicial system. Chris Micheli, a law professor at McGeorge School of Law, explained that such opinions are frequently cited in court decisions and could influence the trajectory of future legislative or judicial actions.
The California Nations Indian Gaming Association (CNIGA) responded favorably to Bonta’s conclusions, applauding the opinion and demanding stronger enforcement. “Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?” the organization stated. CNIGA Chairman James May urged state authorities to take firm action in light of the opinion.
Online sports betting remains illegal in California, one of ten states in the U.S. that still prohibit it. Recent ballot efforts aimed at legalizing sports betting in the state, including those in 2022, have failed to gain sufficient voter support. Bonta’s opinion reinforces that, under current law, daily fantasy contests are subject to the same restrictions as traditional sports gambling.
A spokesperson for Governor Gavin Newsom weighed in, stating that the governor does not agree with the AG’s interpretation but supports pursuing a “constructive path forward in collaboration with all stakeholders.”
Source:
California Attorney General says daily fantasy sports are illegal gambling, World Casino Directory, July 3, 2025.