California Could Soon Make Fantasy Sports Illegal
Posted on: June 27, 2025, 12:58h.
Last updated on: June 27, 2025, 12:58h.
- Attorney General expected to release decision in coming days
- Lawmaker believes daily fantasy sports is a game of chance, which is prohibited under California law
California Attorney General Rob Bonta (D) is expected to soon release an opinion rendering all fantasy sports platforms illegal in the most populous state.
In what could be a devastating blow for bettors and operators alike, Bonta’s office will release the opinion between today and July 3, according to KCRA 3. Should Bonta proceed as expected, it would all but eradicate Californians’ regulated options for potentially winning money from sports contests because the state currently doesn’t allow sports wagering and that’s not expected to change anytime soon.
It’s widely expected that if Bonta declares fantasy sports to be illegal, gaming companies will challenge the decision, but legal experts are speculating that could be a tough road to traverse because California courts frequently affirm the attorney general’s rulings.
Currently, daily fantasy sports (DFS) operates in a gray area in California. While there is no law overtly permitting the activity, there isn’t explicitly deeming it illegal, either. DFS is typically considered a game of skill, which allows that form of betting to proceed in some states without dedicated laws supporting, but in 2023, Republican State Senator Scott Wilk sent a letter to Bonta’s office in which he claimed DFS is beyond participants’ control, meaning it’s a game of chance.
Republican Assemblyman Tom Lackey has taken the lead on the issue because Wilk termed out last year. The only games of chance that are legal in California are the state lottery and those offered by card rooms, and tribal casinos.
Speaking of California Tribes…
Not surprisingly, the California tribes with gaming interests loom large in the debate over the legality of DFS in the state. Earlier this week, the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations (TASIN) penned a letter to California lawmakers cautioning them that some fantasy sports operators may be pushing their colleagues to introduce legislation to protect that industry.
We respectfully urge you to withhold any commitments or authorships until the Attorney General releases his opinion,” according to the letter. “It is essential that all stakeholders—including the Legislature—have the benefit of clear legal guidance and facts before proceeding with any legislation. Should a bill be introduced before the Attorney General’s opinion is released and fully evaluated, we will be compelled to oppose it.”
Tribal operators have exclusivity agreements with California, meaning they control matters of gaming expansion in the state. They also exert significant political influence in the state, implying it could be difficult for DFS operators to find favorable legal remedies for remaining in the Golden State.
Conversely, the Coalition for Fantasy Sports notes that California is the largest fantasy sports market in the US and the activity is supported by 75% of the state’s voters.
Winners, Losers if California Makes DFS Illegal
Should Bonta issue an opinion saying DFS is illegal, losers under that scenario include DraftKings and FanDuel, which have operated in California for roughly a decade. DFS upstarts such as Betr, PrizePicks, and Underdog Fantasy would also be punished.
Should those companies be forced to cease operating in California, sports bettors in the state would have no choice but to turn to the black market or embrace prediction markets that offer yes/no event contracts, implying companies such as Kalshi and Polymarket could benefit from DFS becoming illegal in California.
Prediction markets are regulated federally and thus operate in all 50 states, but that has drawn the ire of various constituencies, including attorneys general and tribal casino operators.
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