Key points:
- California Attorney General ruled that daily fantasy sports games violate state law prohibiting sports wagering, regardless of operator location
- The ruling applies to both "draft style" and "pick'em" daily fantasy formats currently offered by multiple providers in California
- The opinion aligns with similar determinations by gaming regulators in Virginia, Arizona, Wyoming and Florida
A newly released opinion from California Attorney General Rob Bonta has concluded that daily fantasy sports (DFS) games are prohibited under existing state law, marking a major development for fantasy operators and players in the state’s lucrative market.
The formal opinion, published on 3 July 2025, responds to a request from State Assembly Member Tom Lackey, who sought clarity on whether DFS contests are legal for players located within California.
The opinion specifically found that daily fantasy sports games – whether in the “draft style” or “pick’em” formats – constitute wagering on sporting events, which is expressly banned under California Penal Code section 337a.
The law criminalises betting “upon the result...of any trial or contest of skill, speed or power of endurance” involving persons or animals.
According to the Attorney General, both DFS formats meet this definition because participants pay for the chance to win money based on the performance of real-world athletes in sporting events.
Draft style games allow players to build a fantasy roster and accumulate points based on real-world performance, while pick’em games ask players to predict whether an athlete will exceed or fall short of a performance threshold.
The opinion noted that these contests function like traditional sports bets, often mirroring parlay wagers or proposition bets offered by licensed sportsbooks in other states.
The ruling aligns California with other states such as Arizona and Florida that have determined pick’em-style fantasy contests fall under sports wagering laws.
California, however, does not currently have a regulated sports betting market outside of permitted horse racing wagers and certain tribal gaming operations.
Good to know: The opinion emphasised that regardless of whether DFS operators or their technology infrastructure are located outside the state, offering these games to players physically in California violates the law
While the opinion did not reach a conclusion on whether DFS contests also meet the definition of an illegal lottery under separate statutes, the finding that they qualify as sports wagering was sufficient for the ban.
This legal clarification could prompt significant changes for DFS operators that continue to offer real-money daily fantasy contests to millions of Californians, with enforcement or regulatory adjustments likely to follow in the months ahead.
