Underdog Fantasy filed an injunction to suppress the California Attorney General, Rob Bonta, from stating his opinion on the legality of fantasy sports. However, a Sacramento judge tossed that suit, and Bonta recently announced that fantasy sports betting in California is illegal under the law.
Setting the Stage for a Shutdown
Underdog Sports states 10% of its business is based in California, but that could be coming to a rapid close after the state’s AG expressed his legal opinion that fantasy sports are illegal under California statute. The company stated that Bonta was not sufficiently familiar with the industry to provide an opinion that could have had reverberating and deleterious effects.
“Absent relief from this Court, Attorney General Rob Bonta will issue an opinion later this week that will decimate fantasy sports in California,” reads the memorandum supporting the TRO request. “Attorney General Bonta should be enjoined from doing so, not because he is wrong in his views on the legality of fantasy sports—though he certainly is—but because by statute, the Attorney General can only issue opinions on questions of law and can only answer questions that relate to the duties of the official requesting the opinion.“
“Neither is true here. Thus, Attorney General Bonta lacks authority to issue the opinion and should be enjoined from doing so.”
Judge Rockwell Denies Injunction
However, Sacramento County Judge Jennifer K. Rockwell threw out the injunction, clearing the way for Bonta to make his announcement late this week. Rockwell wrote in her opinion the following:
“Petitioners had ample opportunity to raise such a challenge at any time after the Attorney General’s acceptance of the question posed by Senator Wilk in October 2023. The fact that Petitioners delayed filing this action does not constitute a basis for ex parte relief,” wrote Sacramento County Judge Jennifer K. Rockwell.
“Further, the Attorney General’s issuance of an opinion of pursuant to Government Code section 12519 does not effect any change in the law. (People v. Vallerga (1977) 67 Cal.App.3d 847, 870 [“the opinions of the California Attorney General are advisory only and do not carry the weight of law”].) Accordingly, Petitioners have not established that they will suffer any harm as a result of the issuance of Opinion No. 23-1001.
“The Ex Parte Application is denied. No hearing will be held.”
Bonta’s Opinion
It turns out that Underdog had every reason to be concerned about Bonta’s legal opinion, as the AG sided with the Deputy Attorney General, Karim Kentfiel. Both believe that “pick ’em” and “draft style” daily fantasy sports games run counter to the law and should thereby be prohibited in the Golden State.
“California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located,” said the opinion. “Such games constitute wagering on sports in violation of Penal Code section 337a.”
Bonta’s opinion initially came about as a result of a request from former state Senator Scott Wilk in 2023. Although it took two years for the AG to issue his opinion, and it has no legal bearing, it will likely trigger legislation to prohibit daily fantasy sports operators in the Golden State. As of this writing, fantasy sports operate in a legal grey area that is not licensed in California but not expressly prohibited.
