Disagreement Between Governor Newsom and California AG DFS on Particular Issue
Daily Fantasy Sports (DFS) in California are currently deemed illegal sports wagering under state law following a recent opinion issued by California Attorney General Rob Bonta[1][2][3].
On July 3, 2025, Bonta ruled that DFS contests, including peer-to-peer and paid formats, violate California Penal Code section 337a, which prohibits wagers on outcomes of contests of skill or chance unless explicitly authorized[3]. This has led to legal uncertainty and enforcement threats against DFS operators in the state[1][4].
The opinion, even if it does not shut down DFS operations, could influence future enforcement or legislative efforts in California[1][4]. Major DFS platforms like Underdog Fantasy have already modified or removed certain contest types in California to try to comply[4], while other operators like FanDuel and DraftKings are reportedly preparing to legally challenge the decision while maintaining user access[3].
The governor, California's Gavin Newsom, has pushed back against Bonta's opinion, stating that DFS remains operational and lawful for now[1]. Despite the opinion not being a court ruling, it carries significant enforcement weight[1].
Industry stakeholders, including the Coalition for Fantasy Sports, DraftKings, FanDuel, PrizePicks, and Underdog, have aligned with Newsom and criticized the AG's opinion as legally flawed and out of step with how other states with daily fantasy sports are treating the topic[1].
The attorney general's office argued that these contests involve bets on the outcome of real-world sporting events, even if skill plays a role in player selection[1]. While the governor emphasized that the opinion does not carry legal force and does not change the current California sports betting law[1], tribal gaming groups, which have long argued that DFS undercuts their exclusivity, have already called on the state to act on Bonta's conclusions[1].
The fate of DFS in California remains unresolved and increasingly political[1]. The governor has called for further debate in the legislature or courts regarding the legality of DFS contests in California[1]. As a result, California’s DFS market—one of the largest in the U.S., contributing roughly 15% of the national DFS revenue—is in crisis, with platforms scaling back or facing potential legal action, and players likely losing access to popular contests in the near term[3][1].
This situation remains fluid as legal challenges and legislative developments continue. For now, DFS in California exists under a cloud of legal prohibition enforced by the state Attorney General and facing industry pushback[1][2][3][4][5].
Michael Molter, a sports betting expert, covers legal sports betting bills, sports betting revenue data, tennis betting odds, and sportsbook reviews. His work often focuses on the sports betting industry, including the latest news, trends, and analysis[6].
- The attorney general's office maintains that Daily Fantasy Sports (DFS) contests, which involve bets on the outcome of real-world sporting events, violate California law.
- Despite the California Attorney General's opinion deeming DFS illegal sports wagering, the governor, Gavin Newsom, has argued that DFS remains operational and lawful for now.
- While major DFS platforms like Underdog Fantasy have modified certain contest types to comply with the California Attorney General's opinion, others like FanDuel and DraftKings are preparing to legally challenge the decision.
- Michael Molter, a sports betting expert, covers various topics related to the sports betting industry, including DFS legalities, trends, and analysis, providing insights on significant policy-and-legislation developments in the field.
