Potential Ban on Fantasy Sports Inevitable in California
California Attorney General Rob Bonta has issued an official opinion declaring daily fantasy sports (DFS) as illegal betting under California law, effective July 2025 [2][3][4]. However, this nonbinding opinion does not carry the force of law and has not yet changed the legal status of DFS in the state.
Despite the AG's position, major DFS operators such as DraftKings and FanDuel continue to offer services to California residents. The Governor's office has expressed disagreement with the opinion and has advocated for a collaborative solution with stakeholders.
The current situation leaves DFS in a legal gray area in California. On one hand, the AG's opinion classifies DFS as illegal betting under state law, citing Penal Code section 337a. On the other hand, DFS platforms remain operational, and the state has yet to pass new legislation explicitly banning the practice.
This legal uncertainty means that DFS players should exercise caution and consider protections offered by operators licensed in other states. If DFS were to be declared illegal, sports bettors in California would have no choice but to turn to the black market or embrace prediction markets, which have drawn the ire of various constituencies, including attorneys general and tribal casino operators.
The California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations (TASIN) have cautioned California lawmakers against committing to or authoring any legislation regarding DFS before the Attorney General releases his official opinion. The California tribes exert significant political influence in the state, which could make it difficult for DFS operators to find favorable legal remedies for remaining in California.
Republican Assemblyman Tom Lackey is taking the lead on the issue, as Senator Wilk termed out last year. The Coalition for Fantasy Sports notes that California is the largest fantasy sports market in the US and is supported by 75% of the state's voters. Prediction markets such as Kalshi and Polymarket could potentially benefit from DFS becoming illegal in California, as they operate in all 50 states due to federal regulation.
The California tribes have exclusivity agreements with the state, giving them control over matters of gaming expansion. They have warned that some fantasy sports operators may be attempting to introduce legislation to protect the industry. Legal experts speculate that challenging Bonta's decision could be a tough road to traverse due to California courts frequently affirming the attorney general's rulings.
In conclusion, the current situation in California leaves daily fantasy sports in a legal gray area. The AG's opinion declares DFS illegal, but the state has yet to pass legislation explicitly banning the practice. Major DFS platforms remain operational, and the Governor's office has expressed disagreement with the opinion. Players should exercise caution and consider protections offered by operators licensed in other states. The final decision is expected to be released between June 27, 2025, and July 3, 2025.
- Despite California Attorney General Rob Bonta declaring daily fantasy sports (DFS) as illegal betting under California law in 2025, major DFS operators like DraftKings and FanDuel continue to offer services to California residents.
- The current legal status of DFS in California remains uncertain, with DFS platforms operative and no new legislation explicitly banning the practice passed.
- The California Nations Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nations have cautioned California lawmakers against legislating on DFS before the Attorney General releases his official opinion.
- If DFS were to be declared illegal in California, sports bettors might turn to the black market or prediction markets, such as Kalshi and Polymarket, which operate in all 50 states under federal regulation.
- The Governor's office has expressed disagreement with the AG's opinion and has advocated for a collaborative solution with stakeholders in the DFS industry, sports, finance, business, banking-and-insurance, and regional news.
