California Legal Battle Impacts Sports Betting Rules: AG Declares DFS Illegal

California – In a move that sends shockwaves through the entire sports betting industry, California Attorney General Rob Bonta has declared daily fantasy sports (DFS) contests to be unlawful under state law. This decision has significantly impacted the landscape of sports betting, with two of the largest DFS operators already facing federal class-action lawsuits over the legality of their wagering practices.

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