David Purdum
Daily fantasy constitutes sports betting and is therefore illegal in California, according to an opinion released Thursday by the state’s attorney general. But the fantasy industry isn’t planning to immediately cease operations.
California Attorney General Rob Bonta concluded that state law prohibits draft and pick’em-style daily fantasy contests “because they involve betting on sporting events.”
California is among the 10 states that have not legalized traditional sports betting, but online fantasy sites have operated in the state for more than a decade. It’s unclear how or if Banta will enforce his opinion.
A spokesperson for California Gov. Gavin Newsom told KCRA 3 News Sacramento that the governor does not agree with Bonta’s opinion.
“He welcomes a constructive path forward in collaboration with all stakeholders,” the spokesperson added.
Fantasy companies maintain that they offer games of skill and should not be considered gambling.
“We look forward to meeting with the Attorney General’s office to talk through our next steps,” a spokesperson for FanDuel said in a statement.
Fantasy operator Underdog says it plans to continue to offer its fantasy contests in the state. The company sued to stop Banta from releasing the opinion earlier this week, but the case was dismissed by a California state judge, who suggested that the opinion would not change state law. California accounts for approximately 10% of annual revenue for Underdog, according to a company spokesperson.
States have varying laws regarding daily fantasy, with multiple jurisdictions banning pick ’em style games that mimic traditional sports betting.
