California Attorney General Rob Bonta has issued a legal opinion that classifies daily fantasy sports as illegal gambling in the state, marking a significant shift in the regulatory landscape for online gaming platforms. The 33-page document, released on Thursday, asserts that daily fantasy sports platforms violate California law by enabling participants to wager against each other, similar to traditional sports betting. This ruling, however, does not extend to season-long fantasy sports leagues, which have operated legally in California for over a decade.
Bonta’s opinion was prompted by a 2023 request from state Republican lawmaker Scott Wilk, who sought clarity on the legality of daily fantasy sports after a 2022 state ballot measure to legalize online sports betting was rejected by voters. The decision has sparked debate, particularly given the state’s ongoing prohibition on live sports betting. The industry, which has generated billions in revenue since its inception, now faces uncertainty regarding its continued operations in California.
While Governor Gavin Newsom’s office has acknowledged the attorney general’s ruling, it emphasized that the governor does not support the opinion and hopes for a collaborative path forward. The ruling could have wide-reaching financial implications for the state’s fantasy sports sector, which has thrived in the absence of clear legal guidelines. As the legal landscape evolves, the decision may prompt further legislative action or regulatory adjustments to address the implications of Bonta’s legal opinion.