California AG says daily fantasy is illegal in state – ESPN

Daily fantasy constitutes sports betting and is therefore illegal in California, according to an opinion released Thursday by the state’s attorney general. But the fantasy industry isn’t planning to immediately cease operations.
California Attorney General Rob Bonta concluded that state law prohibits draft and pick ’em-style daily fantasy contests “because they involve betting on sporting events.”
California is among the 10 states that have not legalized traditional sports betting, but online fantasy sites have operated in the state for more than a decade.
States have varying laws regarding daily fantasy, with multiple jurisdictions banning pick ’em-style games that mimic traditional sports betting. It’s unclear how or if Bonta will enforce his opinion.
A spokesperson for California Gov. Gavin Newsom told KCRA 3 News Sacramento that the governor does not agree with the opinion.
“He welcomes a constructive path forward in collaboration with all stakeholders,” the spokesperson added.
Fantasy companies maintain that daily fantasy contests offer games of skill and should not be considered gambling.
A spokesperson for FanDuel said in a statement: “We look forward to meeting with the attorney general’s office to talk through our next steps.”
DraftKings said it disagrees with Bonta’s opinion and that it continues to offer its contests in the state as it has for over 13 years.
“Notably, the overwhelming body of law from 24 states and Congress confirms that fantasy sports contests are games of skill,” a DraftKings spokesperson told ESPN in a statement. “We intend to work with stakeholders, including the office of the attorney general, to try to find an amicable resolution.”
Fantasy operator Underdog says it plans to continue to offer its fantasy contests in the state. The company sued to stop Bonta from releasing the opinion earlier this week, but the case was dismissed by a California state judge, who suggested that the opinion would not change state law. California accounts for approximately 10% of annual revenue for Underdog, according to a company spokesperson.
The California Nations Indian Gaming Association (CNIGA) applauded the opinion and called for increased enforcement.
“Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?” James May, CNIGA chairman, said in a statement. “It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account.”

source