California's Attorney General Considers DFS Unlawful, Governor Newsom Expresses Disagreement
California Attorney General Declares Daily Fantasy Sports Contests Illegal, Governor Urges Collaborative Solution
California Attorney General Rob Bonta has issued a formal legal opinion declaring that daily fantasy sports (DFS) contests are illegal under state law. The opinion, issued on July 3, 2025, states that DFS contests—both pick’em and draft-style formats—constitute illegal sports betting under California law, particularly Penal Code section 337a, which prohibits wagering on sporting events in the state.
However, it's important to note that this AG opinion is nonbinding and does not have the force of law. Major DFS platforms such as FanDuel, DraftKings, Underdog, and PrizePicks have continued to operate and accept California residents despite the ruling. The Governor’s office disagrees with the opinion and has expressed interest in seeking a collaborative solution with stakeholders.
The California Governor, Gavin Newsom, publicly repudiated Bonta's opinion on DFS contests. His spokesperson, Izzy Gardon, stated that the opinion was issued by the AG independently and not by the Governor’s Office. Newsom welcomes a constructive path forward in collaboration with all stakeholders regarding the DFS issue.
JT Foley, executive director of the Coalition for Fantasy Sports, pushed back on Bonta's interpretation of DFS contests. Foley stated that Bonta "got it wrong" and that the law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized. Foley expressed hope that the Attorney General would heed Governor Newsom's call to find a constructive solution that preserves the games Californian sports fans love.
California law defines gambling as betting activities where chance predominates. However, DFS operators argue their contests are games of skill. Bonta, on the other hand, argues that DFS contests are "wagers" on the performance of third-party athletes and fall under Penal Code § 337a, which criminalizes betting on contests of "skill, speed or power of endurance."
DFS industry had anticipated this opinion, but it still had a significant impact. DraftKings and PrizePicks, two of California's largest DFS operators, are already facing federal class-action lawsuits. The DFS industry in California remains unregulated, and players should exercise caution, although many operators voluntarily adopt consumer protections found in other states.
This ruling could spark civil lawsuits or prompt lawmakers to address the issue directly. California, America's most populous state and one of the largest DFS markets in the country, worth an estimated $200 million annually, could see a shift in its DFS landscape in the coming months.
As of July 3, 2025, at 07:35h, this is the latest update on the news article. The ongoing legal uncertainty surrounding DFS in California will likely continue to be a topic of interest and debate.
Gavin Newsom, the California Governor, publicly disagreed with California Attorney General Rob Bonta's opinion on daily fantasy sports (DFS) contests, stating it was not issued by his office. The industry, including DraftKings and PrizePills, continues to operate and accept California residents despite Bonta's declaration that DFS contests are illegal under California gambling law. JT Foley, executive director of the Coalition for Fantasy Sports, argues Bonta's interpretation is incorrect, claiming the law has not changed, a view supported by the previous Attorneys General. This ruling could lead to civil lawsuits or legislative action, potentially shifting the DFS landscape in California, a significant market for DFS worth an estimated $200 million annually.
