In a landmark development for the gaming industry, California’s Attorney General, Rob Bonta, has issued a formal legal opinion concluding that daily fantasy sports (DFS) contests are prohibited under current state law.
The opinion, published on July 3, 2025, represents a significant challenge to DFS operators active in one of the nation’s most populous and lucrative markets.
The ruling was issued in response to a request for clarity from a state legislator.
Attorney General Bonta’s office found that DFS games, including both traditional “draft style” and the increasingly popular “pick’em” formats, constitute illegal sports wagering as defined by the California Penal Code. The relevant statute expressly forbids placing bets on the outcome of any contest involving skill, speed, or endurance.
According to the opinion, because DFS participants pay an entry fee for a chance to win a prize based on the real-world performances of professional athletes, these contests fall squarely within the state’s definition of prohibited gambling.
This legal interpretation aligns California with other states that have determined certain fantasy contests, particularly pick’em style games, function as de facto sports betting.
The Attorney General’s opinion explicitly states that the physical location of the DFS operator or its servers does not matter; offering these contests to players located within California is a violation of state law.
While California does not currently have a legal market for sports betting outside of horse racing and limited tribal gaming, this opinion creates significant uncertainty for major DFS platforms that have operated for years in the state.
The finding sets the stage for potential enforcement actions or new legislative efforts to either formally regulate or explicitly ban the activity, forcing a major shift for the industry in the months ahead.
