Daily fantasy sports ruled illegal in California: AG Bonta
In an anticipated move, California Attorney General Rob Bonta has issued a legal opinion declaring all forms of Daily Fantasy Sports (DFS) illegal in the state. The opinion, requested by Assemblyman Tom Lackey, sought clarity on “whether California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of whether the operators and associated technology are located outside the State?”
The 33-page opinion, released on 3 July 2025, warns that DFS-style games, including “pick’em” and “draft-style” formats, pose acute risks of gambling addiction and financial harm. DFS contests, like those offered by DraftKings, FanDuel and similar services, is now banned under current California law. “It is illegal to offer these products to people physically located in California, regardless of where the operators and associated technology are located,” Bonta wrote.
Addictive nature of daily fantasy sports cited
Bonta’s analysis places a sharp focus on the addictive nature of DFS betting models, comparing them to the risks historically associated with horse racing. “California’s gambling law was developed out of concern that horse-race wagering had resulted in addiction and financial ruin,” Bonta wrote, emphasising that these same dangers are “particularly acute” in today’s fast-paced DFS products. While more than half of US states have embraced online sports betting, California’s Legislature has so far resisted—largely due to addiction-related concerns. Bonta’s opinion reinforces that hesitation.
DFS involves betting on the performance of athletes, which Bonta argues falls under the definition of illegal gambling. California considers online sports betting illegal. Multiple initiatives in recent years to legalise it have fallen through. The most recent attempt was in 2022, which was rejected by voters. While the legal opinion does not make it a law, it could influence future court rulings and legislative debates.
One of the AG’s most striking warnings centred on the “rapid nature” of prop betting, especially in DFS formats where outcomes are resolved within minutes—or even seconds. “We are not aware of any authority indicating that these [addiction] risks are materially different for proposition betting than for other forms of sports wagering,” Bonta stated. “If anything, the rapid nature of in-game proposition betting… might make addiction risks especially acute.”
Bonta’s warning comes amid rising public concern over sports betting addiction, especially among online users. According to a , over 52 percent of online sports bettors admitted to “chasing” their losses—a key indicator of problem gambling. Half of respondents reported using gambling addiction tools provided by sportsbook apps. Meanwhile, 37 percent acknowledged betting more than they could afford to lose, with the same percentage expressing feelings of shame or regret after a loss.
The legal opinion places California’s millions of sports fans and casual fantasy players in a state of limbo. Fantasy sports have long existed in a legal gray area in California. While online sports betting is clearly illegal under state law, daily fantasy sports have operated for years with little interference.
Push back from coalition for Fantasy Sports
The Coalition for Fantasy Sports—comprising companies like Betr, PrizePicks, Underdog Fantasy, Dabble, and Splash Sports—formed to push back against the looming opinion. The group stated, “We hope the Attorney General’s office will consider the views of sports fans across the state before making a decision. Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away.”
Taking a different stance, powerful Native American tribes are pushing for stricter regulation. Earlier last week, the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations issued a letter urging lawmakers to back the potential ban of daily fantasy sports. CNIGA chairman James Siva was quoted as saying, “While we have not yet seen the Attorney General’s pending opinion, we are happy to hear that Attorney General Rob Bonta is standing up for the people of California by ensuring that state laws are followed.“
“Illegal and unregulated gaming has been a problem in California for decades. These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling. We are glad to see Attorney General Bonta address the issue and look forward to lawbreakers being held to account.”
