California AG Declares Daily Fantasy Sports Illegal Gambling

California Attorney General Rob Bonta issued a legal opinion declaring daily fantasy sports platforms, including pick’em and draft-style contests, illegal under state law as they constitute wagering on sports, violating Penal Code section 337a. This opinion challenges the long-held view that fantasy sports are games of skill and instead classifies them as a form of illegal sports betting, despite opposition from Governor Gavin Newsom, who disagrees with the interpretation and favors collaborative solutions. The opinion, although advisory and not legally binding, holds persuasive authority and could influence future court rulings and legislative actions, potentially ending the operation of major platforms like DraftKings, FanDuel, and Underdog in California. Fantasy sports operators have begun legal pushback, but the state's courts have yet to rule definitively, leaving the industry's status uncertain. The issue arises amid ongoing debates about legalizing sports betting in California, which voters have repeatedly rejected, and highlights tensions between tribal gaming interests, lawmakers, and the fantasy sports industry. The decision could significantly impact an industry generating billions in revenue while sparking a probable legal and legislative battle over the legality of online fantasy sports.