California AG to Rule Daily Fantasy Sports Illegal
KCRA 3 broke the news that Attorney General Rob Bonta is gearing up to release a legal opinion by July 3 declaring all online DFS platforms illegal in the state.
A Game-Changer for Fantasy Sports
This opinion could yank the rug out from under companies like DraftKings and FanDuel, which have been staples for millions of Californians for over a decade. The move’s got the industry sweating bullets, with billions in revenue on the line and a likely courtroom showdown looming.
Online sports betting is already a no-go in California, and DFS has been hanging out in a legal gray zone. Republican lawmakers like former Senator Scott Wilk and Assemblyman Tom Lackey pushed for this opinion, arguing DFS is a “game of chance” since players can’t control athletes’ performances.
Wilk’s 2023 letter to the Department of Justice called it straight-up gambling, which requires a license under state law. The California Nations of Indian Gaming Association (CNIGA) is cheering Bonta on, with chairman James Siva saying it’s about time the state cracked down on “illegal and unregulated gaming” that leaves players vulnerable to fraud and underage gambling.
The Fallout
If Bonta’s opinion sticks, it’s bad news for the 7 million Californians who play DFS. The Coalition for Fantasy Sports called it “devastating,” begging Bonta to consider fans before pulling the plug.
“Folks have been picking their fantasy lineups for years—now it’s suddenly a crime?” the group said. SacTown Sports host Carmichael Dave didn’t hold back, calling it “large hypocrisy” when people can pour cash into crypto or stock apps but not bet on the Giants or Niners.
The financial hit could be massive. DFS platforms, operating in California since the early 2010s, face losses in the billions if they’re forced to shut down.
Legal expert Chris Micheli from McGeorge School of Law predicts Bonta will file lawsuits to enforce the ruling, though courts will have the final say. “California judges give the AG’s opinion some weight, but it’s not gospel,” Micheli noted.
Expect a legal slugfest as companies fight to keep their market, especially after voters shot down online sports betting in 2022’s Proposition 27 by a 2-to-1 margin.
Tribal Influence and Timing
The CNIGA and Tribal Alliance of Sovereign Indian Nations have been vocal, urging lawmakers to hold off on any DFS-friendly bills until Bonta’s opinion lands.
They see unregulated platforms as a threat to their gaming interests, which pump $8 billion annually into tribal economies. Their push, combined with Wilk and Lackey’s prodding, has put DFS in the crosshairs.
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