In a significant legal development, California Attorney General Rob Bonta has declared daily fantasy sports (DFS) illegal, asserting that they fall under the category of sports betting, which is currently prohibited in the state. This opinion arises from a request by Assemblymember Tom Lackey, reflecting growing concerns about the legality of DFS amid its expanding popularity.
Bonta outlined that both pick ’em games and draft-style competitions effectively constitute betting, as participants pay entry fees and stand to win or lose money based on the outcomes of real-life sporting events. He emphasized that the distinction often made by proponents of DFS—that they differ from traditional betting due to a greater reliance on skill—does not hold weight under California law, which explicitly forbids wagering on sports results.
Despite the Attorney General’s stance, California Governor Gavin Newsom has expressed disagreement with the ruling, although he is open to collaboration with all stakeholders to address the issue. The future of DFS in California remains uncertain, particularly as companies like DraftKings plan to continue their operations in light of Bonta’s opinion.
This development marks a crucial intersection of law and sports entertainment in California, a state that has already seen voters reject propositions aimed at legalizing sports betting. The implications of this ruling extend beyond gaming platforms, potentially affecting local economies and engagement with the digital sports market. As Bonta’s opinion does not create or enforce laws—only the Legislature and voters can enact changes—the path forward will likely involve continued debate and legislative action.
via www.foxla.com