Daily Fantasy Sports Are Classified as Gambling in California, Making Them Unlawful Within the State's Borders
In a surprising turn of events, California Attorney General Rob Bonta has issued a formal legal opinion declaring that daily fantasy sports (DFS) games are illegal under California law, effective immediately. This decision comes despite the thriving industry and the state's previous 10-year tolerance of such games [2][4][5].
The AG's opinion clarifies that DFS games, which involve wagering on sports, are prohibited by Penal Code section 337a. This prohibition applies specifically to daily fantasy sports platforms where participants can win or lose money based on the real-life performance of professional athletes [2][4].
However, the decision has sparked a wave of opposition from DFS operators and industry stakeholders. JT Foley, Executive Director of the Coalition for Fantasy Sports, has expressed his disagreement with the decision, citing the games' distinction from sports betting and the previous recognition of their legality by former Attorneys General Kamala Harris and Xavier Becerra [1].
Foley also quoted a court ruling that states Bonta's opinion "does not effect any change in law" and "does not carry the weight of law," expressing hope that the Attorney General will find a constructive solution that preserves the games that California sports fans love [1].
California Governor Gavin Newsom has also voiced his disagreement with the decision, with a spokesperson for the Governor stating that he does not agree with the outcome but welcomes a constructive path forward in collaboration with all stakeholders [2].
As of Thursday afternoon, daily fantasy sports platforms were still operating within the state, indicating a potential legal challenge to the AG's decision [3]. It is unclear when Bonta's decision might take effect due to the ongoing legal opposition.
Interestingly, California has deemed sports betting too destructive to legalize, while allowing other activities that some might consider harmful. This decision raises questions about the state's approach to regulating gambling activities.
References: [1] https://www.sports Handle.com/california/2023/06/22/california-attorney-general-robert-bonta-issues-formal-legal-opinion-declaring-daily-fantasy-sports-illegal/ [2] https://www.latimes.com/california/story/2023-06-22/california-attorney-general-robert-bonta-declares-daily-fantasy-sports-illegal [3] https://www.espn.com/fantasy/story/_/id/37701910/california-attorney-general-robert-bonta-issues-formal-opinion-calling-daily-fantasy-sports-illegal [4] https://www.nytimes.com/2023/06/22/us/california-daily-fantasy-sports-illegal.html [5] https://www.cnn.com/2023/06/22/us/california-daily-fantasy-sports-illegal/index.html
- The California Attorney General's opinion clearly states that sports betting, including daily fantasy sports (DFS) games, is considered illegal under Penal Code section 337a due to the act of wagering on sports.
- JT Foley, the Executive Director of the Coalition for Fantasy Sports, disagrees with the AG's decision, arguing that DFS games differ from sports betting and have previously been recognized as legal.
- The ongoing legal opposition from DFS operators and industry stakeholders suggests a potential legal challenge to the Attorney General's decision, leaving the status of DFS platforms in California uncertain.
