California AG Rules Daily Fantasy Sports Are Gambling, Thus Illegal In The State

As OutKick previously covered, California was expected to declare that daily fantasy sports – on platforms like Prize Picks, Underdog, DraftKings and others – are now illegal in the state. On Thursday afternoon, one day before the July 4th holiday weekend, Attorney General Rob Bonta released a legal opinion on daily fantasy sports declaring them illegal in the state. 

"California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located. Such games constitute wagering on sports in violation of Penal Code section 337a," Bonta wrote in the opinion. 

The conclusion states that "daily fantasy sports games, including both pick’em and draft style games, are prohibited by section 337a because they involve betting on sporting events." 

California Attorney General Rob Bonta released an opinion declaring that Daily Fantasy Sports are considered gambling under state law and are, thus, illegal.

(John Meore/The Journal News / USA TODAY NETWORK via Imagn Images)

According to KCRA, California Gov. Gavin Newsom disagreed with Bonta's decision. 

"The Attorney General, in his independent capacity, issued this opinion — not the Governor’s office," Izzy Gardon, a spokesperson for Gov. Newsom, told the outlet. "While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders."

Bonta's decision is likely to encounter legal opposition, and it is unclear when this might take effect. As of Thursday afternoon, daily fantasy sports platforms were still operating within the state. 

UPDATE: 

JT Foley, Executive Director of the Coalition for Fantasy Sports, released a statement: 

"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, recognized 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."

FROM OUTKICK'S PREVIOUS REPORT: 

Sports gambling is already illegal in California, but operators continue to offer daily fantasy sports contests to players, because the courts have ruled fantasy sports "a game of skill". However, that appears poised to end in California.

It's interesting that sports betting is the one thing in California that has been deemed too destructive to legalize. Of course, if people want to live on the streets, steal from stores, shoot up drugs, enter the country illegally, or have men compete in women's sports, all of that is fine. But sports betting is where the state draws the line… 

Daily fantasy sports have always operated differently than sports betting. Many states that don't allow gambling do allow fantasy sports… It's unclear why California, after 10 years of allowing daily fantasy sports, suddenly plans to take that away from citizens.