Underdog Fantasy has filed lawsuits in Sacramento County Superior Court to prevent California Attorney General Rob Bonta from releasing a forthcoming legal opinion declaring daily fantasy sports (DFS) illegal under state law. The company argues that the AG's opinion improperly addresses disputed factual questions, such as the role of chance versus skill in DFS contests, which they claim exceeds the AG's authority. Underdog also sought a temporary restraining order (TRO) to block the opinion's release, but the court denied the request, citing undue delay and noting that AG opinions are advisory and do not carry the weight of law. Despite the denial, Underdog has stated it will continue offering DFS in California. On July 3, 2025, the California Department of Justice officially released the AG's legal opinion, stating that online fantasy sports platforms violate Penal Code 337a by constituting wagering on sports when players are physically located in California. The opinion targets both draft-style and pick'em DFS games but does not address season-long fantasy sports, which remain unaffected. Governor Gavin Newsom expressed disagreement with the AG's decision but indicated a willingness to seek a constructive path forward with stakeholders. The ruling aligns California with Texas, where the AG also opined that DFS contests violate state law, raising questions about potential impacts on other states like Florida. The opinion creates a challenging regulatory environment for DFS operators including Underdog, DraftKings, FanDuel, and PrizePicks, the latter having recently switched platforms amid the uncertainty. The legal and legislative battles over DFS legality in California are expected to continue.
BREAKING: California’s attorney general has issued an opinion saying daily fantasy sports games are illegal because they “involve betting on sports." The opinion creates a challenging environment for sportsbook operators like Underdog, DraftKings, and FanDuel. Details ⬇️
California and Texas. 10 years apart, the AGs of the 2 largest states have opined that #DFS violates state law. What does that portend for Florida, which has its own problematic but distinguishable 1991 AG opinion? Will this spur an update in another tribal gaming state?
California AG opinion is in and OOF it is broad indeed. Reading and writing up now, will let you know when it is up on @sbc_americas