California Attorney General Rob Bonta Announces Tougher Enforcement in Department of Financial Services
California Attorney General Declares Daily Fantasy Sports (DFS) Illegal
In a significant move for the gaming industry, California Attorney General Rob Bonta has declared that all real-money online daily fantasy sports (DFS) contests, including pick’em and draft-style games, are illegal under California law[1][2][3][4].
The opinion, issued on July 3, 2025, states that these DFS games constitute betting on sporting events, which is prohibited in California regardless of where operators or technology platforms are based. The opinion is a formal legal advisory concluding that DFS games violate California’s gambling laws, specifically section 337a, because they involve sports wagering[1][4].
Although the opinion itself is not legally binding as a statute or court ruling, it carries substantial weight and may lead to enforcement actions or operators exiting the California market[1][3][4]. Industry players have contested the opinion—DFS companies argue their games are based on skill, not chance, and should not be classified as gambling[3].
California tribes have demanded swift action to enforce DFS regulations, with the California Nations Indian Gaming Association (CNIGA) agreeing with Bonta’s opinion and calling for strong enforcement and accountability. The CNIGA chairman, James May, states that it is imperative that the state backs up Bonta’s legal opinion with strong enforcement and holds lawbreakers accountable[4].
The governor’s office reportedly does not fully agree with the Attorney General’s stance and is open to a collaborative solution with stakeholders, suggesting dialogue but not immediate regulatory changes[3]. The Coalition for Fantasy Sports, which includes PrizePicks and Underdog Fantasy as members, disputes Bonta’s opinion, stating that he "got it wrong"[3].
California is the biggest DFS market in the US, accounting for around 15% of all revenues nationwide, estimated to be approximately $200 million annually[1][2][4]. As of Friday, DFS sites like FanDuel, DraftKings, PrizePicks, and Underdog Fantasy were still offering their services to California residents[4].
This development significantly threatens the DFS market in California, historically one of the largest and most important in the US for fantasy sports revenues[1][2][4]. The opinion could strengthen civil lawsuits against DFS companies by those seeking to recoup losses. Laws are meant to be enforced, according to Bonta, and enforcement of the laws regarding DFS in California is the next step[1][4].
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
- The California Attorney General, Rob Bonta, declared all daily fantasy sports (DFS) games illegally under California law, considering them as betting on sporting events, which is prohibited.
- DFS companies, such as FanDuel and DraftKings, have argued that their games are based on skill, not chance, and should not be classified as gambling.
- California gambling laws, specifically section 337a, are believed to be violated by DFS games, according to Bonta's legal opinion, with the state's tribes demanding swift action to enforce the regulations.
- The development threatens the DFS market in California, a significant portion of the US fantasy sports revenues, and may result in enforcement actions or operators exiting the market.
- The California Nations Indian Gaming Association (CNIGA) called for strong enforcement and accountability, while the governor's office is open to a collaborative solution with stakeholders.
