California Attorney General Rob Bonta's office has dropped its opinion on the legality of paid daily fantasy sports, and it's not good news for DFS lovers or operators in the Golden State.
Key takeaways
- California Attorney General Rob Bonta has declared that paid daily fantasy sports (DFS) games, both pick'em and draft-style contests, violate state law.
- The opinion could have a big impact on DFS operators in the state, as they offered an alternative to the point spread, moneyline-style sports betting California hasn't yet legalized.
- The DFS opinion is also just one way in which California lawmakers are trying to better define legal gaming; another is an anti-sweepstakes casino bill.
The California Department of Justice released the eagerly awaited DFS legal opinion on Thursday, with Bonta’s office siding squarely against paid fantasy games.
“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 says. “Such games constitute wagering on sports in violation of Penal Code section 337a.”
The section of law the opinion cited states that it’s a crime if someone makes or accepts bets on sporting event outcomes. And, according to the AG’s office, DFS is a little too much like “traditional” sports wagering, letting players “win or lose money based on the outcome of sporting events played by third-party athletes.”
The legal opinion on California DFS is out. 33 pages but here's the short of it:
— Geoff Zochodne (@GeoffZochodne) July 3, 2025
"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." pic.twitter.com/5nLMIFxepM
Furthermore, the AG’s office sees no difference between “pick’em”-style fantasy games and draft-style contests.
“We conclude that daily fantasy sports games, including both pick’em and draft style games, are prohibited by section 337a because they involve betting on sporting events,” the opinion says.
There does still appear to be some gray area around the AG's thoughts about the legality of season-long fantasy contests.
While the opinion says "draft style game entry fees ... constitute wagers on sports under the general definition," one of the footnotes in the document notes that only a ruling on the legality of DFS was sought.
"We therefore need not consider whether season-long fantasy sports fall outside of section 337a, such as whether the greater degree of player interaction in those games suggests that players are participating in their own contest," the footnote says.
You're done having fun in the warm California sun
A now-former California legislator initially sought the DFS opinion back in 2023, but it's a big deal for the state and for fantasy and sports wagering operators across the U.S.
There is no legal sports betting in California, a very costly fact for companies such as DraftKings and FanDuel, which poured millions into a ballot measure in 2022 that went down in flames.
So, in the absence of legalized sports betting, DFS and other forms of paid fantasy sports helped fill the void.
For additional proof of the bigness of this deal, look no further than paid fantasy operator Underdog unsuccessfully suing to stop the release of the California AG’s legal opinion.
It was also duly noted that PrizePicks recently adjusted its operations in the state, moving to a peer-to-peer model rather than continue with pick’ems versus the house.
(Thursday's opinion does not spare peer-to-peer DFS either, saying that "this version of pick’em also constitutes sports wagering because the entry fees satisfy the definition of a 'bet' or 'wager'" under California law.)
Analysts at investment bank Citizens reported last month that PrizePicks accounted for 34% of all daily fantasy app downloads in the U.S. in May, while Underdog had an 18% share. In other words, the two companies represented more than half of all DFS downloads, making them significant players in the world of paid fantasy contests.
Both PrizePicks and Underdog are also available in California, the most populous state in the U.S. And yet, paid fantasy contests are not technically authorized by state authorities.
That's just, like, your opinion, man
Thursday's opinion from Bonta could now put a damper on all that DFS. However, it's unclear how or if the AG will go about enforcing his views. It also appears that the fantasy industry is prepared to push back.
The Coalition for Fantasy Sports, whose members include PrizePicks and Underdog, threw some shade at the opinion in a statement, noting remarks made by a California court in rejecting Underdog's bid to stop the release of the document.
Furthermore, the coalition seized on comments from Gov. Gavin Newsom's office on Thursday, which said the governor disagreed with Bonta's opinion.
"We agree with Governor Newsom — AG Bonta got it wrong," said JT Foley, the fantasy coalition's executive director. "As the Court said yesterday, this opinion ‘does not effect any change in law’ and does ‘not carry the weight of law.’ The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized as they specifically declined any similar action. We are hopeful the Attorney General heeds the Governor's call to find a constructive solution that preserves the games that California sports fans love.”
California AG's DFS opinion does not spare peer-to-peer pick'ems either, says it's sports betting: pic.twitter.com/GYfVPGqEWH
— Geoff Zochodne (@GeoffZochodne) July 3, 2025
A spokesperson for FanDuel, which likewise offers DFS in California, said the company looks forward to meeting with Bonta's office "to talk through our next steps."
DraftKings, meanwhile, took a harsher tone.
A spokesperson for the Boston-based online gambling company, which also offers DFS in California, said it "respectfully disagrees with the interpretation expressed with respect to peer-to-peer fantasy sports contests in the non-binding advisory opinion issued by the Attorney General of California."
"We believe peer-to-peer fantasy sports contests, including Salary Cap, Pick 6 and Best Ball, are legal in California, and we intend to continue offering them -- as we have done without challenge or issue for over 13 years," they added. "Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are legal games of skill. In addition, the highest courts in Illinois and New York previously held that peer-to-peer fantasy sports contests are legal games of skill. We intend to work with stakeholders, including the Office of the Attorney General, to try to find an amicable resolution."
But that's not all...
Yet the DFS opinion is not the only front where California lawmakers are trying to clarify what is and isn't legal in the state.
With the support of the state's Native American tribes, legislation was recently amended to try to crack down on sweepstakes casinos and sportsbooks.
California Nations Indian Gaming Association Chairman James Siva suggested in a statement on Thursday that the added legal clarity is a long time coming.
"While the California Nations Indian Gaming Association (CNIGA) commends Attorney General Rob Bonta for standing up for the rule of law in California, it is also very clear that California has long turned a blind eye to illegal gambling—at the direct expense of tribal governments," Siva said. "Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability? It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account."
