California Attorney General Rob Bonta has officially issued a legal opinion, clearly declaring that Daily Fantasy Sports (DFS) games violate current California law, regardless of whether the operators and technological infrastructure are located outside of California. This ruling targets the "draft style" and "pick'em" formats provided by several suppliers, identifying both as illegal sports betting activities.
The opinion was requested by State Assemblymember Tom Lackey to clarify the legality of DFS for California players. According to Section 337a of the California Penal Code, any gambling activity based on the "skill, speed, or endurance test or competition result" of a person or animal is illegal. In DFS games, players pay a fee and win prizes based on the real-life performance of athletes, fitting the definition of gambling described in the statute.
Draft games allow players to build a fantasy lineup and accumulate points based on real match performances, while pick'em games require predicting whether athletes will meet certain standards. Both forms simulate traditional sports betting, similar to the accumulative or proposition bets offered by licensed sports betting in other states.
This legal opinion aligns California with states like Virginia, Arizona, Wyoming, and Florida, which all consider pick'em style fantasy contests as part of sports betting regulation. Notably, California currently has no legal sports betting market, except for horse racing betting and some tribal gaming.
The opinion emphasizes that providing DFS services to California players is illegal, regardless of whether the operators or technological equipment are located outside of California. Although it is not explicitly stated whether DFS constitutes an illegal lottery, identifying it as sports betting is sufficient to implement a ban.
This clarification may prompt DFS operators to adjust their business practices, and in the coming months, California may see related enforcement and regulatory changes, affecting millions of fantasy sports players and operators.
