California Underdog Initiates Legal Action to Halt DFS Opinions Issued by AG
In a recent development, California Attorney General Rob Bonta has declared daily fantasy sports (DFS) as illegal sports betting under state law, a decision that has sparked controversy among DFS operators. Underdog Sports, a DFS company, has expressed concern over the Attorney General's decision, arguing that insufficient notice was given before the plan to go public.
The Attorney General's opinion, scheduled for release on Thursday, does not immediately change state law but sets a precedent for potential enforcement actions. Companies are expected to comply with the law, although no specific enforcement timeline has been announced. Fantasy sports companies have plans to advocate for the legality of DFS and may challenge the opinion in court.
The controversy surrounding the Attorney General's decision stems from the argument that DFS is a game of skill exempt from gambling laws. However, the Attorney General's office has cited California Supreme Court precedent that wagering on uncertain future events (like sports competitions) constitutes illegal gambling.
Meanwhile, California is also considering a ban on sweepstakes casinos, but further details regarding this matter have not been provided in the article.
Michael Savio, a Denver-based writer, covers the sports betting industry for Casino.com. Known for his detailed and accurate reviews, Savio's work focuses on providing easy-to-understand information. His additional interests include betting on sports and exploring Colorado. Readers can find Savio's reviews under the category "Related News" on Casino.com.
As the situation unfolds, it will be interesting to see how the DFS industry responds to the Attorney General's opinion and whether the proposed ban on sweepstakes casinos in California gains momentum. Stay tuned for updates on this developing story.
In light of the Attorney General's opinion, sports-betting companies, including Underdog Sports, may consider expanding their operations to locations like Las Vegas, where sports betting is legal, to avoid potential enforcement actions in California. The controversy over the legality of sports betting, including sports-betting through daily fantasy sports (DFS), is expected to continue in California courts, possibly escalating with potential challenges against the Attorney General's decision.
