Key Points
- Underdog Fantasy files a lawsuit to stop California AG from issuing an opinion
- Judge denies Underdog’s request, stating the AG’s opinion is advisory
- DFS operators plan to continue in California despite the ruling
Underdog Fantasy, a company that runs online fantasy sports games,
asked a court
in Sacramento County on June 30, 2025, to stop California’s Attorney General, Rob Bonta, from sharing a legal opinion. His opinion is that daily fantasy sports (DFS), where players pick teams and win money based on real sports results,
is against the law.
Underdog wanted to keep things as they were because they feared losing customers and money. But on July 2, 2025, Judge Jennifer Rockwell said no to Underdog’s request. She said the company didn’t prove it would be harmed right away if the opinion came out.
The Attorney General’s opinion
Daily fantasy sports let people pick players, like in football or basketball and win cash if their team does well. In California, these games might be seen as illegal betting under state law, which bans betting on sports results.
The Attorney General’s opinion is that DFS should not be allowed. This opinion isn’t a law, but it can guide police or courts. Companies like Underdog, DraftKings, and FanDuel, which offer these games, might have to stop in California. About 10% of Underdog’s money comes from the state, so this is a big deal for them.
Here’s an overview of what Banta said:
“We received numerous public comments arguing that daily fantasy sports either are or are not prohibited by various constitutional and statutory provisions…We conclude that daily fantasy sports games constitute sports wagering and therefore violate section
337a. While we are unable to conclude whether such games also violate the lottery prohibition…it is unnecessary to resolve the latter question in light of our conclusion that California law independently prohibits such games under section 337a.”
Background on DFS in CA
California voters said no to legal online sports betting in 2022. After that, a state leader asked Attorney General Bonta to decide if DFS is legal. His answer could change how fantasy sports work in California, where these games have been popular for years.
Some companies, like PrizePicks, have changed their games to avoid looking like betting, but a strict opinion could stop them all. On July 3, 2025, four lawsuits were filed against Underdog and others, saying their games are illegal. These lawsuits want to stop the games and get money back for players.
How this ruling could change DFS in the state
The Attorney General’s opinion could push California to make new laws about DFS. It might also lead to more police action against these companies. Underdog and DraftKings say they’ll keep offering their games, believing some types of fantasy sports are legal. But they could face more court fights as their operations are in flux.
The opinion might make it harder for these companies to work in California, and players might lose access to their favorite games. Underdog and similar companies have already shifted their model to be focused on peer-to-peer gaming instead of betting against the house.
Players in California will need to monitor the progress of this potential landmark movement. A shift in strategy from familiar DFS options could encourage players from staying within the market, or see them support outside ventures like sweeps casinos or contract betting.
