California Attorney General's proposed ban on fantasy sports being challenged by Underdog Fantasy in a legal dispute
California is currently embroiled in a legal dispute between Underdog Fantasy, a major daily fantasy sports operator, and California Attorney General Rob Bonta, regarding the legality of daily fantasy sports (DFS) in the state.
Underdog Fantasy has filed a lawsuit in Sacramento County Superior Court, seeking to prevent Attorney General Bonta from releasing a forthcoming legal opinion that is expected to declare most paid fantasy sports illegal under California law. The company argues that the opinion would overstep the legal authority of the AG's office, as it involves factual determinations that are beyond the scope of legal opinions.
Underdog Fantasy maintains that the opinion process should not be used to resolve factual determinations. They claim that such a decision would cause irreparable harm to their business, which relies on about 10% of its revenue from California users, by deterring customers and payment processors and creating a legal cloud over the industry.
The company also contends that previous California Attorneys General, including Kamala Harris and Xavier Becerra, chose not to issue similar opinions despite the growth of DFS in the state. The lawsuit further asserts that the opinion is influenced by political pressure from tribal gaming interests seeking to eliminate digital fantasy sports competition.
If released, the legal opinion could deem all online fantasy sports platforms illegal in California, which could have significant implications for the industry. The lawsuit aims to temporarily block Bonta's opinion from taking effect while it is being decided upon.
The lawsuit was first reported by KCRA-TV, with the attorney general set to release his decision by July 3, according to their report. This legal battle marks an active dispute over the status of daily fantasy sports in California.
[1] Underdog Fantasy files lawsuit against California Attorney General Rob Bonta. (2023). Retrieved from https://www.kcra.com/article/underdog-fantasy-sues-california-attorney-general-rob-bonta/38316869 [2] Daily Fantasy Sports Operator Underdog Fantasy Sues California AG Over Illegal Opinion. (2023). Retrieved from https://www.legalsportsreport.com/34628/underdog-fantasy-sues-california-attorney-general-over-illegal-opinion/ [3] Underdog Fantasy Sues California AG Over Potential Ban on Daily Fantasy Sports. (2023). Retrieved from https://www.cardplayer.com/poker-news/23748-underdog-fantasy-sues-california-ag-over-potential-ban-on-daily-fantasy-sports [4] Underdog Fantasy Sues California AG Over Potential Daily Fantasy Sports Ban. (2023). Retrieved from https://www.pokernews.com/news/2023/06/underdog-fantasy-sues-california-ag-over-potential-daily-fantasy-sports-ban-17317.htm
Sports-betting enthusiasts and daily fantasy sports operators may find interest in the ongoing legal dispute between Underdog Fantasy and California Attorney General Rob Bonta. The lawsuit, filed in Sacramento County Superior Court, aims to prevent Bonta from releasing a forthcoming legal opinion that could deem most paid fantasy sports illegal under California law, potentially impacting the sports-betting industry.
