Daily fantasy sports contests could soon face a blanket ban in California.
California Atty. Gen. Rob Bonta is expected to announce his decision to ban all DFS contests in the state within a few days, according to local outlet KCRA-TV.
Bonta’s office started looking into the legality of DFS in October 2023 at the request of former Sen. Scott Wilk.
The decision is expected to be announced by July 3.
Coalition for Fantasy Sports: let voters decide
Whether fantasy sports should be legal or not should be left up to the voters, said JT Foley, the executive director of the Coalition for Fantasy Sports. The coalition represents pick’em style DFS operators like Underdog and PrizePicks.
“[Seventy-five percent] of California voters support fantasy sports — a clear sign of how popular these games are across the state,” Foley said. “Millions of Californians actively play fantasy sports, and even among opponents, most agree the decision should be left to voters, not courts or politicians. To take these games away now would be a complete disregard for the will of the people.
“We urge the Attorney General to listen to the millions of sports fans whose voices deserve to be heard.”
Three out of four voters that oppose fantasy sports believe the issue should be decided by voters, according to a June survey conducted by Global Strategy Group.
California tribes reached out to legislators
A joint letter to state legislators from the California Nations Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nations week to preemptively oppose any legislation that would legalize DFS, according to KCRA’s report.
“Despite this pending opinion, some fantasy sports interests are already approaching members of the Legislature to author and/or support a bill on this issue,” the letter reads. “We respectfully urge you to withhold any commitments or authorships until the Attorney General releases his opinion.
“It is essential that all stakeholders—including the Legislature—have the benefit of clear legal guidance and facts before proceeding with any legislation. Should a bill be introduced before the Attorney General’s opinion is released and fully evaluated, we will be compelled to oppose it.”
Legislators were working on a bill to legalize DFS that fell apart after this letter was sent, according to an industry source.
Tribes called pick’em DFS illegal betting
In January 2024, CNIGA submitted a letter to Bonta’s office specifically concerned with DFS contests that allow players to enter contests with entries similar to prop parlays.
There were three specific reasons given as to why those contests should be considered illegal sports betting:
- “Pick’em Games are not managing a fantasy or simulation sports team”
- “Pick’em Games often permit participants to place a single bet on the performance statistics of two athletes who participate in two completely different types of sporting events”
- “… in the operation of these Pick’em Games, major operators, such as Underdog Fantasy and PrizePicks, have participants play against the ‘house,’…”
Could California push DFS players offshore?
Shutting down the gray market of DFS could lead would-be DFS players to seek out illegal gambling options.
Pick’em operators like PrizePicks and Underdog gave Californians the option to create parlay-like entries while many wait for legal sports betting. Tribal entities expect 2028 would be the earliest that sports betting legalization will be on the ballot and spent nine figures to soundly defeat the most recent attempt in 2022.
PrizePicks has signed multiple MLB partnerships to increase its exposure in the state. The company announced a deal with the Los Angeles Dodgers earlier this month and partnered with the San Francisco Giants and San Diego Padres in April.
Should all DFS be shut down and the state legislature pass a bill banning sweepstakes operators, Californians will be left to choose between prediction markets offered by operators like Kalshi or moving to an unlicensed sportsbook offshore.
AG action a long time coming
The request from Wilk in 2023 was far from the first time DFS legality was discussed in California.
Those conversations date back to at least 2015, when a significant influx of daily fantasy sports advertisements brought the industry to the forefront of legislators, AGs and other gaming entities around the country.
Lead writer Sam McQuillan contributed to this report.
