California’s Attorney General claims Daily Fantasy Sports are illegal under state legislation
California Attorney General Rob Bonta has said that California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located.
He said: “Such games constitute wagering on sports in violation of Penal Code section 337a. Whatever the formula, the determination of who wins or loses is “based on a future contingent event”—namely, the “outcome of the sports competition”—that is “not under the control of the sportsbook or the bettor.”
Bonta added: “While we are unable to conclude whether such games also violate the lottery prohibition—because that analysis would require making factual determinations outside the scope of an Attorney General legal opinion—it is unnecessary to resolve the latter question in light of our conclusion that California law independently prohibits such games under section 337a.3 prohibits related offenses, such as recording bets and bookmaking.35.
“We conclude that participants in both types of daily fantasy sports games— pick’em and draft style games—make “bets” on sporting events in violation of section 337a. Our conclusion is consistent with the view of out-of-state regulators. Regulators in Virginia, Arizona, Wyoming, and Florida, for example, have all concluded that state laws regulating sports wagering apply to pick’em.41 As the Arizona Department of Gaming explained, the games are simply a type of “proposition bet[ting].”42 We are not aware of any out-of-state regulator to reach a contrary conclusion,” the Attorney General added.
A spokesperson for Governor Gavin Newsom’s office replied. “The Attorney General, in his independent capacity, issued this opinion — not the Governor’s office. While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”
A DraftKings spokesperson commented: “Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are games of skill. We intend to work with stakeholders, including the office of the attorney general, to try to find an amicable resolution.”
FanDuel added. “We look forward to meeting with the attorney general’s office to talk through our next steps,” a spokesperson said.
