(6/28/22)California Attorney General Rob Bonta speaks at a press conference after a hate crimes roundtable discussion with community leaders at the Memorial Civic Auditorium in downtown Stockton on Tuesday, June, 28, 2022. CLIFFORD OTO/THE STOCKTON RECORD Ag Roundtable 089a
Sacramento, California – In a significant escalation of California’s gambling debate, Attorney General Rob Bonta issued a formal opinion Thursday concluding that daily fantasy sports contests—specifically “pick’em” and “draft-style” games—constitute illegal sports betting under state law. The opinion does not immediately outlaw such contests but could trigger a regulatory shift for an industry that has operated in legal limbo for more than a decade.
Daily fantasy platforms like FanDuel, DraftKings, and Underdog Fantasy have long maintained that their games are contests of skill, not chance, and therefore exempt from gambling laws. But Bonta’s opinion makes clear that, in the eyes of the state’s chief law enforcement officer, the structure of these games aligns more with traditional sports wagering than with skill-based competitions.
The opinion hinges on Penal Code Section 337a, which prohibits betting on the outcome of a contest involving skill, speed, or endurance—language the Attorney General argues squarely applies to fantasy sports games that reward players based on the real-world performance of athletes in a single event.
The ruling places California in line with a growing number of states that have scrutinized or outright banned pick’em-style games, which ask users to predict whether athletes will exceed or fall short of statistical thresholds. These games often pit players not against each other, but against the operator—what the opinion describes as a hallmark of traditional sports betting.
Despite the legal interpretation, immediate enforcement remains unclear. A spokesperson for Governor Gavin Newsom distanced the administration from the opinion, stating the governor “does not agree” with Bonta’s view and supports finding a “constructive path forward” in collaboration with stakeholders.
The industry, which has flourished in California even as traditional sports betting remains outlawed, signaled defiance. DraftKings noted it had operated in California for over 13 years and would continue to do so, citing what it described as widespread legal precedent affirming fantasy sports as games of skill. FanDuel said it plans to engage in discussions with the Attorney General’s office. Underdog, a newer entrant with a growing market share, unsuccessfully attempted to block the release of the opinion earlier this week and said it would also continue operations in California. According to the company, the state accounts for roughly 10% of its annual revenue.
Meanwhile, tribal gaming interests applauded the ruling. The California Nations Indian Gaming Association called for immediate enforcement and accused fantasy operators of skirting laws for years while “untold millions if not billions” were illegally wagered.
At the core of the dispute is a larger question about how states define gambling in the digital age. Fantasy sports began as season-long competitions among friends, often with low stakes and minimal involvement from commercial operators. Today, daily fantasy sports are multimillion-dollar businesses with complex games, steep entry fees, and massive prizes. The lines between wagering and skill have blurred, and in California, at least, the state appears ready to redraw them.
