Daily fantasy sports are illegal in California, Attorney General rules

Daily fantasy sports illegal in California: AG

Daily fantasy sports are illegal in California under the state's laws that prohibit sports gambling, according to a ruling by state Attorney General Rob Bonta.

LOS ANGELES - Daily fantasy sports are illegal in California, according to a new legal opinion released by the state Attorney General this week.

What we know:

Attorney General Rob Bonta released his legal opinion on Thursday. Bonta argued that these daily fantasy sports games were equivalent to sports betting, which is already illegal in the state of California. 

Bonta's opinion came after a request from California State Assemblymember Tom Lackey to clarify whether the games are legal. Lackey represents parts of Los Angeles, San Bernardino and Kern counties.

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The backstory:

Daily fantasy sports, or DFS, have been under legal scrutiny since they exploded in popularity in recent years. They cover a number of different kinds of competitions based on real-life sporting events.

In his written opinion, Bonta looked at two specific types of daily fantasy games: pick ‘em games and draft competitions. In pick 'em games, players pick a handful of athletes, and choose whether they think those athletes will meet some sort of threshold in a game, like, for example, a certain number of strikeouts in a baseball game. 

In draft-style games, players individually select players from a pool to create a "team." Players are assigned points for their performances in their individual games, and the fantasy player with the "team" of players that earned the most points is the winner.

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What they're saying:

In both formats, participants pay an entry fee, and win or lose money depending on the outcome. Bonta's conclusion was simple. He argued that these entry fees were bets, and betting on sporting events in California is illegal.

Bonta specifically called out pick 'em style games for being "materially indistinguishable" from parlays and prop betting.

The other side:

The typical counterargument when people say DFS is sports betting is that these games are more skill-based than chance-based. But, Bonta said, that argument doesn't apply here.

According to Bonta, it wouldn't matter whether a person was more "skilled" at picking the right players — California law prohibits putting money down on the outcomes of sporting events. 

California Gov. Gavin Newsom's office told FOX News that Newsom "does not agree" with Bonta's ruling, but "he welcomes a constructive path forward in collaboration with all stakeholders."

What we don't know:

It's not immediately clear what Bonta's opinion means for the future of DFS games and platforms in California. A representative for DraftKings told ESPN that they disagree with Bonta's opinion and will continue to offer daily fantasy games in the state.

Bonta also did not address the legality of traditional, season-long fantasy sports in his opinion. 

This legal opinion does not change or create any laws, as the California Department of Justice noted.

"The Department doesn’t have the authority to make new law or change the law – only the Legislature and the voters of California can decide whether to change the law," the department said.

California voters rejected a proposition in 2022 that would have legalized sports betting.

You can read Bonta's 33-page opinion below: