AG Letter Could Signal Doom for Fantasy Sports in California

by John Allaire and Brian C. Schaller

California is currently on the verge of a significant decision that could reshape the landscape of daily fantasy sports (“DFS”) in the state. It is widely reported that Attorney General Rob Bonta is expected to announce a blanket ban on all DFS contests in the state within the next few days. This follows an investigation into the legality of DFS that began in in October 2023 at the request of former Senator Scott Wilk. DFS was again the subject of a legal opinion request to the Attorney General’s Office in August 2024 (see page 4 of the Monthly Opinion Report - 23-1001).

Fantasy sports in California has been a hot button topic for years. Efforts to legalize fantasy sports have ultimately failed, and DFS platforms have been operating in the state under the premise that DFS are games of skill, which are generally seen as not illegal gambling. California’s tribal gaming associations, including the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations, have taken a firm stance against DFS. In January 2024, for example, CNIGA submitted a letter to Bonta’s office specifically targeting the legality of Pick’em-style DFS contests.

An Attorney General Opinion like this would significantly change the risk profile of operating a DFS contest in the state. Other state AG’s may decide to follow suit. With a huge market in California for fantasy sports and football season only a few months away, the potential ban could signal disruption for a thriving industry.

Originally published by InfoLawGroup LLP. If you would like to receive regular emails from us, in which we share updates and our take on current legal news, please subscribe to InfoLawGroup’s Insights HERE.