California Attorney General Rob Bonta issued a legal opinion stating that daily fantasy sports games, including both “pick ’em” and “draft style” formats, constitute illegal sports wagering under state law. The opinion clarifies that California law prohibits sports betting except on horse races, and this ban applies regardless of where the game operators are located. Bonta rejected the argument that daily fantasy sports are legal due to their reliance on skill, emphasizing that the key factor is wagering on the outcome of uncertain future sports events. This advisory opinion, requested by state lawmakers, could prompt legislation to ban daily fantasy sports, though it does not carry the force of law.

The opinion has sparked controversy, with Governor Gavin Newsom distancing himself from it and the Fantasy Sports & Gaming Association criticizing it as out of step with other states where fantasy sports are legal. Major operators like Underdog, FanDuel, and DraftKings plan to continue operating in California while seeking resolution with the Attorney General’s office. The issue remains contentious, especially after California voters rejected sports betting legalization measures in 2022, and industry leaders are exploring collaboration with Native American tribes to potentially pave the way for legal sports betting in the future.