California Attorney General describes daily fantasy sports as betting

California’s daily fantasy sports (DFS) industry is facing unprecedented scrutiny after Attorney General Rob Bonta issued a formal opinion declaring that both pick’em and draft-style DFS contests constitute illegal betting under state law.

The opinion, released in early July 2025, states: “We conclude that participants in both types of daily fantasy sports games – pick’em and draft-style games – make ‘bets’ on sporting events in violation of section 337a.”

This development follows a request from state legislators seeking clarification on the legal status of DFS platforms, which have operated in California for over a decade.

Bonta’s opinion specifically targets the mechanics of popular DFS games: pick’em contests, where users predict individual player performances, and draft-style games, where users assemble virtual teams for cash prizes.

According to the Attorney General, both formats mirror traditional sports wagering, which is prohibited by California Penal Code section 337a.

The opinion is not legally binding and does not immediately alter state law or force operators to halt their activities. However, it has already intensified legal and legislative pressure on major DFS companies such as Underdog, PrizePicks and DraftKings.

These operators have maintained that their offerings are games of skill rather than chance, a distinction the Attorney General’s office rejected, citing California Supreme Court precedent that skill-based contests can still fall under the definition of gambling if they involve uncertain future events.

In response to the heightened regulatory risk, some operators have begun to adjust their business models.

PrizePicks, for example, recently discontinued its ‘against-the-house’ pick’em games in California, pivoting to peer-to-peer contests in an effort to stay within legal boundaries.

Meanwhile, Underdog attempted to block the release of the Attorney General’s opinion through a lawsuit, but the effort was denied by a state court.

California represents a significant market for these companies, accounting for an estimated 10% of annual revenue for some operators.

The Attorney General’s stance has also fueled broader debates among lawmakers, tribal gaming interests and consumer protection groups.

Multiple class action lawsuits have been filed against DFS operators, arguing that their products constitute unauthorized sports betting and violate state gambling laws.

The legal uncertainty has prompted calls for legislative action, with some stakeholders advocating for a public vote to determine the future of DFS in California.

As the industry awaits potential enforcement actions and legislative responses, the Attorney General’s opinion marks a pivotal moment for daily fantasy sports in the nation’s largest market.

The outcome could reshape the legal landscape for fantasy contests and online gaming throughout the state.