REDDING, Calif. — California Attorney General Rob Bonta has issued a legal opinion declaring that online daily fantasy sports platforms, including pick’em and draft-style contests, are illegal under state law.
The opinion, requested by Assembly member Tom Lackey, is expected to ignite a legal battle between fantasy sports operators and tribes that have long questioned the legality of these platforms in the state.
Redding Rancheria Attorney General Mike Hollowell expressed to the Northstate’s News Tyler Van Dyke the tribe’s opposition to daily fantasy apps. “As far as Redding Rancheria’s opinion on daily fantasy apps in their current form, the tribe is against them,” said Hollowell.
Underdog Fantasy, one of the largest daily fantasy sports platforms in the country, tried to sue to prevent Bonta from releasing his opinion last week. However, a judge suggested the opinion would not alter state law.
Consequently, Bonta issued his opinion last Thursday, stating that 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. Such games constitute wagering on sports in violation of Penal Code section 337a.
“Redding Rancheria certainly applauds AG Bonta for stepping up and taking this position. It’s the right position,” Hollowell added.
Governor Gavin Newsom’s office, however, expressed disagreement with Bonta’s opinion. “The Attorney General, in his independent capacity, issued this opinion — not the Governor’s office,” said Izzy Gardon, a spokesman for Newsom. “While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”
Daily fantasy sports differ from traditional sports wagering, which typically involves betting on the outcome of a game between two teams.
Instead, daily fantasy sports involve betting on individual players’ performances. For example, on the popular app PrizePicks, users do daily pick’em games, such as betting on Reds pitcher Nick Lodolo to achieve six strikeouts on Thursday.
Hollowell emphasized that these apps, which allow illegal daily fantasy betting, primarily affect tribal casinos like Win-River due to the heavy regulation of tribal gaming. “We’re talking the NIGC at the federal level, that’s the National Indian Gaming Commission, we have the DOJ through the state of California and the gaming compact, and then we have a tribal gaming agency. Those three levels of regulations and oversight ensure that there’s no fraud, you know minors aren’t allowed to game,” he said.
He further noted the lack of regulation for daily fantasy sports apps, describing it as unregulated gambling. “Having controls and protections, especially for minors, that’s something that has to be looked at and addressed and that’s only addressed through a legal process that includes, you know, strict regulations and when they’re not there, the consumers are going to ultimately be hurt,” Hollowell said.
Hollowell also stated that if there is a future push to legalize these apps, “Tribes should be at the table and included in those discussions.”
On the same day Bonta released his opinion, a coalition of leading consumer protection law firms filed four class action lawsuits in California federal court against FanDuel, DraftKings, PrizePicks, and Underdog Fantasy. The lawsuits, filed on behalf of California residents who entered DFS contests while located in the state, allege unlawful operation of online sports betting under the guise of fantasy sports. You can read more about the lawsuit here.
Here is the full 33 page legal opinion by Attorney General Rob Bonta:
