In a seismic move that could reshape the U.S. fantasy sports landscape, California Attorney General Rob Bonta has officially declared daily fantasy sports (DFS) illegal gambling under state law, triggering a legal and industry-wide firestorm.
According to a legal opinion issued this week, DFS platforms like FanDuel, DraftKings, and Underdog Fantasy are in violation of California Penal Code section 337a, which strictly prohibits wagers on the outcome of any contest of skill or chance unless explicitly authorized. The ruling erases years of regulatory gray area and opens the door for statewide enforcement.
"These contests are not games of skill. They are bets on athletes' performance, which amounts to sports betting," Bonta stated.
The news sent shockwaves through a billion-dollar industry that has counted California as its largest market, with an estimated 15% of U.S. DFS revenue coming from the state. While some operators, like Underdog Fantasy, have begun modifying or pulling contests to comply, giants like DraftKings and FanDuel are digging in their heels and preparing to fight the decision, citing consumer demand and long-standing market presence.
California bill could crush sweepstakes casinos as celebrity lawsuits multiply
Tribal casinos, who’ve long opposed statewide sports betting initiatives like Prop 27, applauded the decision as a win for sovereignty and regulated gaming. "This move levels the playing field and upholds the integrity of tribal gaming rights," a representative from the California Nations Indian Gaming Association stated.
Meanwhile, California players now face a void, with popular DFS contests likely to vanish from platforms over the coming weeks.
The bigger picture? With the nation’s most populous state cracking down, DFS legalization efforts in other states could be derailed, pushing operators into more regulated, expensive territory. For now, the DFS industry has entered crisis mode, and all eyes are on California.
