California Attorney General Rob Bonta released a legal opinion Thursday that indicates daily online fantasy sports platforms in the state are now illegal.
Bonta's 33-page opinion states that fantasy sports platforms are illegal because they involve betting on sports. The seemingly only applies to daily fantasy sports, but not season-long fantasy sports leagues.
"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 says.
"Just because the operator is not betting against the players does not mean that the players are not betting against each other."
Sports gambling has been illegal in California, but fantasy sports has been a legal gray area. But online fantasy sports platforms have operated in the state for more than a dozen years, and the product has generated billions of dollars in that time.
In a 2022 state election, voters overwhelmingly rejected a measure to legalize online sports betting. Then in 2023, California GOP state lawmaker Scott Wilk sent a letter to the state's Department of Justice, requesting a legal opinion on daily fantasy sports.
Now, that opinion has been released, and it could bring about disruption to the state's fantasy sports industry.
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