California AG Declares DFS Illegal, Gov. Newsom Begs to Differ

CALIFORNIA – In a shocking move, California Attorney General Rob Bonta has declared daily fantasy sports (DFS) contests to be unlawful under state law. This decision has sent shockwaves through the industry, with two of the largest DFS operators already facing federal class-action lawsuits.

Bonta’s opinion, which was issued on Thursday, concludes that DFS games are prohibited by section 337a because they involve betting on sporting events. The Governor’s Office quickly distance itself from the opinion, however, with Governor Gavin Newsom urging a collaborative legal solution.

What Does it Mean?

Under California law, gambling is generally defined as betting activities where chance predominates. DFS operators argue that their contests are games of skill, but Bonta’s opinion rejects this distinction, asserting that DFS contests are