Both pick’em and draft contests deemed illegal
On pick’em-style contests, where players predict whether athletes will exceed or fall short of performance benchmarks, the opinion is unambiguous.
It said: “Pick’em participants clearly place bets on the outcome of sporting events in violation of section 337a.”
The document argues these games are no different from proposition bets and compares them to “a classic form of sports wagering: a ‘parlay’ or combination of proposition bets over different game outcomes.”
It adds that skill-based arguments are irrelevant under California’s betting laws, as “the essential requirement of a ‘bet’ or ‘wager’ is that participants win or lose based on the outcome of an uncertain future event, such as a sports competition, even if skilled bettors consistently come out ahead.”
Draft-style contests, where players build fantasy teams under a salary cap and compete for prizes based on the statistical output of their athletes, are treated similarly.
The opinion continued: “Draft style game entry fees therefore do not fall within the contest-participant exception but instead constitute wagers on sports under the general definition.”
The document dismisses the notion that fantasy sports contests are akin to traditional competitions like golf tournaments or spelling bees, noting that players do not themselves compete in the sporting events.
It added: “Daily fantasy games are thus like other ‘bookmaking operations,’ such as wagering on horse racing and dog racing.”
The opinion further cites a wide body of state and federal regulatory interpretations to support its view, arguing: “We are not aware of a single state or federal regulator concluding that a statute like section 337a that prohibits all types of sports betting does not bar draft style games.”
California Governor disagrees with opinion
Responding to the opinion in local media, Governor Gavin Newsom’s spokesperson Izzy Gardon said: “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.”
Unsurprisingly, fantasy sports operators also criticised the opinion through their trade body, comprised of Underdog, PrizePicks, Betr, Splash and Dabble.
The Coalition for Fantasy Sports executive director, JT Foley, said: “We agree with Governor Newsom — AG Bonta got it wrong. As the Court said yesterday, this opinion ‘does not effect any change in law’ and does ‘not carry the weight of law.’
“The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognised as they specifically declined any similar action. We are hopeful the Attorney General heeds the Governor’s call to find a constructive solution that preserves the games that California sports fans love.”
The two most prominent DFS operators, FanDuel and DraftKings, also stand to lose out on any fantasy sports ban. A FanDuel spokesperson said: “We look forward to meeting with the Attorney General’s office to talk through our next steps.”
NEXT.io has also reached DraftKings for comment.
California tribes push for enforcement
Tribal interests, which were rumoured have lobbied in favour of the opinion, came out in favour of its publication yesterday.
California Nations Indian Gaming Association (CNIGA) chair James Siva said: “While [CNIGA] commends Attorney General Rob Bonta for standing up for the rule of law in California, it is also very clear that California has long turned a blind eye to illegal gambling — at the direct expense of tribal governments.
“Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability? It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account.
“Illegal gaming denies consumers real protections and safeguards against illicit practices such as fraud and underage gambling. Strong enforcement against these illegal practices is the only way to ensure that gaming in California remains well-regulated and thus safe for consumers.”
Dingnews.com 07/07/2025