In a recent swing of the legal pendulum, Attorney General Rob Bonta declared daily fantasy sports betting illegal within the borders of California. Based on Penal Code section 337a, Bonta's office issued an opinion stating that such games, regardless of operator location, are considered a form of sports wagering and therefore not permitted. According to CBS News Los Angeles, the statement from Bonta's office came as a response to requests from members of the state legislature aiming to clarify the legality of these online betting activities.
This stance firmly opposes the views held by many daily fantasy sports enthusiasts and operators, who argue that their games are skill-based. "California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located," the opinion expressed. As reported by The Office of the Attorney General, this latest legal opinion was made at the request of Assemblymember Tom Lackey and follows a denied emergency injunction from a fantasy sports firm that attempted to challenge the forthcoming announcement.
The move has prompted a diverse array of reactions. California's Governor Gavin Newsom has distanced himself from the opinion, hoping for a "constructive path forward in collaboration with all stakeholders," in a statement issued to various media outlets. Meanwhile, the Fantasy Sports & Gaming Association criticized the opinion as lacking "common sense," citing the legality of fantasy sports in 26 other states.
Despite the opinion, leading fantasy sports companies FanDuel and DraftKings plan to continue their operations within California, hoping to reach an agreement with the Attorney General's Office. According to the same CBS News Los Angeles report, both firms are among the parties interested in meeting Bonta to find a resolution. However, California voters in 2022 had already struck down two propositions that would have greenlit sports betting, including at Native American casinos, after gaming executives sought to work with tribes at the Indian Gaming Association's convention.
The California Department of Justice has underscored that its role is not to create law but to describe existing legislation as outlined by requests from legislative members. This clarification was part of a formal statement accompanying the legal opinion and is available for public perusal, as mentioned on the Department's website. Amidst this contention, it remains clear that the future of daily fantasy sports in California is far from decided and may involve further legislative or judicial intervention.
