Bonta declares daily fantasy sports illegal in California; industry pushes back

Attorneys suing online fantasy sports betting companies hailed a long-awaited opinion from Attorney General Rob Bonta's office, released Thursday, which argues the companies have operated for years in violation of California law. Meanwhile, a coalition representing the companies pledged to fight the interpretation.

"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," wrote Deputy Attorney General Karim J. Kentfield in opinion numbered 23-1001. "Such games constitute wagering on sports in violation of Penal Code section 337a."

The code bars bookmaking, wagering, and creating betting pools. Violations carry fines up to $5,000 and criminal penalties--either a misdemeanor with up to one year in jail or a felony with a sentence of up to three years.

"We're glad to see the California Attorney General stepping in to confirm the core theory of our cases--daily fantasy sports are gambling, plain and simple," said Wesley M. Griffith, California Managing Partner of Almeida Law Group LLC in Long Beach, in a news release on Thursday. "And gambling is illegal in California. No one is above the law."

JT Foley, executive director of the Coalition for Fantasy Sports, quickly released a statement pointing to a comment from Izzy Gardon, a spokesman for Gov. Gavin Newsom, that "the Governor does not agree" with the opinion.

"We agree with Governor Newsom -- AG Bonta got it wrong," Foley said in an emailed statement. "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."

On Wednesday, Sacramento Superior Court Judge Jennifer K. Rockwell rejected a petition by Underdog to block the release of the opinion. She wrote that it did not change existing law or harm the company.

Underdog General Counsel Nicholas Green said in an emailed statement the company welcomed the "clarity" that Bonta's order does "not carry the weight of law." Underdog Sports, LLC v. Bonta, 25WM000120 (Sac. Super. Ct., filed June 30, 2025).

Almeida has pending complaints in the U.S. Northern District of California against four online fantasy sports companies: DraftKings Inc., FanDuel, Inc., Underdog Sports, LLC, and SidePrize LLC, more often known by the brand name PrizePicks. The complaints seek damages and disgorgement on behalf of players.

The lawsuits allege each company has operated illegal online gambling businesses in violation of the California Consumer Legal Remedies Act and the state's unfair competition laws. They further claim the companies misrepresented their "goods and services," the legality of their offerings, and the "rebate, discount, or other economic benefit" of the games.

The four cases are Moore v. DraftKings, Inc., 3:25-cv-04618-CRB (N.D. Cal., filed June 1, 2025), Franks v. SidePrize LLC, 3:25-cv-04916-LJC (N.D. Cal., filed June 11, 2025), Head v. Underdog Sports, LLC d/b/a Underdog Fantasy, 4:25-cv-05542-JST (N.D. Cal., filed July 1, 2025), Beltran v. FanDuel, Inc., 3:25-cv-05586-JSC (N.D. Cal., filed July 2, 2025),

"Since at least 2015, FanDuel,1 the self-described '#1 Sportsbook and the premier mobile sports betting operator in the U.S.,' has been operating mobile gambling applications and websites within California (collectively, the 'Gambling Websites'), representing to customers and the public that its daily fantasy sports contests, often branded as 'FanDuel Fantasy,' are legal forms of gambling in California," Griffith wrote in the latest complaint. "They are not."

"We look forward to meeting with the Attorney General's office to talk through our next steps," FanDuel said in a statement emailed by spokesman Alex Pitocchelli.