California AG Has His Say and Expresses His Opinion Regarding Fantasy Sports

California Attorney General Rob Bonta recently expressed his legal opinion on fantasy sports after a judge tossed Underdog Fantasy’s temporary injunction that would have prohibited him from doing so. Bonta stated what Underdog feared the most: that fantasy sports are illegal in the Golden State, but whether a bill outlawing fantasy sports will follow is not certain.

Keep Quiet

Underdog Fantasy did not want California’s Attorney General, Rob Bonta, to go public with his declaration on the legality of fantasy sports in the state and even tried to get a temporary injunction to prevent him from expressing his legal opinion.

Underdog filed the injunction stating the following:

“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.”

The suits at Underdog argued that Bonta was not an expert in the field and that he was not qualified to draw a conclusion on the legality of fantasy sports in California. However, a Sacramento County Superior Court judge disagreed despite their argument to the contrary.

Judge Sides With AG

As we can plainly see, Underdog Fantasy was bracing for a scathing rebuke of the fantasy industry, and ultimately, their concerns were justified. Sacramento County Superior Court Judge Jennifer Rockwell ruled against Underdog Fantasy, stating 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.”

What’s Next for Fantasy Sports in California?

When the attorney general opines that the business you are running is illegal in his state, it’s hardly encouraging news. However, it is not necessarily a death knell for the fantasy sports industry. Operating a fantasy sports site in California has been legally murky. There is no law allowing it but none prohibiting it either.

However, now that the attorney general has finally rendered his legal opinion on the industry, it will likely spawn at least one bill specifically outlawing the fantasy sports industry now that the legislature has legal clarity on the subject.

Yet, major fantasy operators stated they intended to continue to operate in the Golden State until a law banning them from doing so was passed. In the meantime, it appears FanDuel, DraftKings, and Underdog will meet with Attorney General Bonta and try to find a resolution that will satisfy all parties.

Stay tuned for the latest updates on this and other major industry developments, including the top-rated sportsbooks.