California AG Rules Daily Fantasy Sports Illegal Amid Legal Challenge

California Attorney General Rob Bonta issued a legal opinion declaring daily fantasy sports games illegal in the state, stating these games constitute betting on sporting events, which is prohibited under California law. This opinion targets draft and pick'em-style contests, aligning with California's stance against traditional sports betting, which remains illegal. Fantasy sports companies such as FanDuel, DraftKings, and Underdog dispute this interpretation, arguing their games involve skill rather than chance and should not be classified as gambling. Underdog attempted to block the opinion's release through litigation, but a Sacramento Superior Court judge denied the request, emphasizing that the Attorney General's opinion is advisory and does not change state law. Despite the opinion, these companies intend to continue operating in California and seek dialogue with state officials to find a resolution. The state DOJ expects compliance but has not indicated immediate enforcement actions, leaving uncertainty about the opinion's practical impact.