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Billions on the Line: California prepares to rule fantasy sports illegal

Jacob Shelton June 27, 2025

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Apr 16, 2025; San Diego, California, USA; San Diego Padres starting pitcher Nick Pivetta (27) delivers during the second inning against the Chicago Cubs at Petco Park. Mandatory Credit: Denis Poroy-Imagn Images

Sacramento, California – California’s legal and political fight over daily fantasy sports is coming to a head, with state Attorney General Rob Bonta preparing to issue an opinion that could label online fantasy sports platforms illegal across the state. Bonta’s forthcoming decision, expected before the Fourth of July holiday, could disrupt a multibillion-dollar industry that has operated in a legal gray area for more than a decade and is deeply ingrained in the culture of California sports fandom.

The looming opinion targets daily fantasy contests where participants pay entry fees, draft teams of real-world athletes, and win prizes based on the athletes’ performance. While supporters argue these contests are skill-based, critics say they function more like games of chance, violating California’s longstanding restrictions on unlicensed gambling. Online sports betting remains explicitly illegal in California, after voters overwhelmingly rejected a legalization measure in 2022.

Tribal governments, which maintain powerful interests in the state’s gambling market, have warned lawmakers in recent weeks about fantasy sports operators seeking to formalize or expand their legal protections. The California Nations of Indian Gaming Association, along with other tribal groups, urged lawmakers to let the attorney general’s office reach its conclusion before taking any action. Their concerns highlight a deeper frustration about what they see as unregulated competitors undermining hard-won gaming compacts that fund tribal services and local economies.

The Coalition for Fantasy Sports, which includes companies like PrizePicks, Betr, Underdog Fantasy, Dabble and Splash Sports, responded swiftly to news of Bonta’s anticipated opinion. They warned that millions of California players who rely on daily fantasy sports for entertainment could be abruptly cut off. At the same time, the sudden change could cause billions of dollars in business to be upended.

Fantasy sports have been part of California’s sporting culture since the early 2000s, connecting fans to teams and athletes in a uniquely interactive way. But their legal standing has never been fully settled. Courts have generally viewed fantasy sports as games of skill, not chance; however, critics argue that outcomes still hinge on factors beyond a participant’s control, making them gambling in everything but name.

Republican lawmakers have pushed for clarity for nearly a decade, including a letter from then-Senator Scott Wilk in 2023, which asked for a definitive legal opinion from the state’s Department of Justice. Assemblyman Tom Lackey has since continued that effort, noting the importance of respecting what voters rejected at the ballot box.

Bonta’s decision will not automatically carry the force of law. Still, it is likely to set the stage for fierce legal battles over whether California sports fans can keep playing the games they love — or if they must give them up entirely.

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