On July 3, 2025, California Attorney General Rob Bonta released a formal 33-page legal opinion declaring that daily fantasy sports (DFS) platforms—including pick’em and draft-style contests offered by companies like DraftKings, FanDuel, and Underdog—constitute illegal gambling under California law. The opinion was issued at the request of Assemblymember Tom Lackey, pursuant to Government Code section 12519, which authorizes the Department of Justice to provide formal interpretations of existing laws when requested by members of the legislature.

According to the State of California Department of Justice – Rob Bonta AG official press release, the opinion, labeled 23-1001, concludes that DFS contests involve betting on sporting events and are therefore prohibited under California’s Penal Code, which currently bans online sports betting. According to the document, while DFS operators often frame their games as skill-based competitions, the determining factor is that participants place wagers based on the performance of real-world athletes, with the possibility of winning or losing money, traits that match California’s legal definition of gambling.

Bonta wrote, “Like traditional sports wagering, daily fantasy sports games enable participants to win or lose money based on the outcome of sporting events played by third-party athletes.” The opinion also noted that DFS players are, in effect, betting against each other, even if the operator itself doesn’t place bets. Therefore, DFS cannot be exempted as merely a skill-based game.

Operators Push Back, Vow to Continue in California

Despite the opinion, major DFS operators have no plans to cease operations in California. DraftKings responded by stating it “respectfully disagrees” with the attorney general’s interpretation and emphasized that peer-to-peer fantasy contests are legal. The company stated, “We believe peer-to-peer fantasy sports contests are legal in California, and we intend to continue offering them, as we have done without challenge or issue for over 13 years.”

FanDuel issued a similar response, saying it looks forward to discussions with the Attorney General’s office to determine next steps. Underdog, another leading operator, also plans to continue offering contests in the state. The company had previously sued to stop the release of the opinion, arguing that it posed an “imminent, existential threat” to its business. However, a California state judge dismissed the suit, ruling that the opinion itself does not create new law and does not constitute irreparable harm.

Underdog has emphasized that its contests are games of skill, citing legal precedent from states like New York and Illinois, which found that DFS does not fall under gambling laws. According to a company spokesperson, California accounts for approximately 10% of Underdog’s annual revenue.

Legal Impact and Tribal Response

While the attorney general’s opinion does not carry the force of law, it is considered “persuasive authority” in California courts. According to Chris Micheli, a law professor at McGeorge School of Law, such opinions are frequently cited by courts and may influence future legislation or judicial decisions.

The opinion has also been welcomed by tribal gaming interests. The California Nations Indian Gaming Association (CNIGA) applauded the AG’s findings and called for enforcement, stating: “Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?” CNIGA chairman James May added that the state must now act decisively to uphold the law.

California remains one of the ten U.S. states where online sports betting is still illegal. Multiple ballot initiatives to legalize sports betting in California, including the most recent in 2022, have failed at the polls. The AG’s opinion reaffirms that, under current law, daily fantasy contests fall within the same legal category.

A spokesperson for Governor Gavin Newsom said the governor disagrees with the interpretation but supports a “constructive path forward in collaboration with all stakeholders.”