California Attorney General Rob Bonta is expected to decide whether to prohibit daily fantasy contests within the next few days.
DFS Blackout
The largest state in the union lacks mobile sports betting and licensing for any type of daily fantasy sports contests. Operators like Underdog and PrizePicks, as well as the Coalition for Fantasy Sports, believe the voters want DFS but have been unable to obtain a referendum.
DFS contests operate in a murky grey area, unlicensed by any regulatory body but not categorized as illegal. Attorney General Bonta’s announcement, just days from now, will change the landscape entirely. Should he approve of DFS contests, it is likely to trigger a regulatory framework that will govern the DFS operators.
However, should he declare DFS contests to be against the law, then operating with impunity and without regulation no longer becomes viable for DFS operators in America’s biggest market.
Industry Voices Call for Voter Input
JT Foley, the executive director of the Coalition for Fantasy Sports, stated, “[Seventy-five percent] of California voters support fantasy sports — a clear sign of how popular these games are across the state,” Foley said. “Millions of Californians actively play fantasy sports, and even among opponents, most agree the decision should be left to voters, not courts or politicians. To take these games away now would be a complete disregard for the will of the people.
“We urge the Attorney General to listen to the millions of sports fans whose voices deserve to be heard.”
DFS Partnerships and Public Support
DFS firms have now invested in partnerships with California’s professional sports franchises, as evidenced by PrizePicks securing agreements with the Giants, Padres, and most recently the Dodgers.
“Partnering with the Dodgers is an incredible opportunity to align with one of the most respected organizations in sports,” said PrizePicks Chief Marketing Officer Mike Quigley. “As the Dodgers chase another championship title, we’re looking forward to delivering unique moments that bring fans even closer to the action.”
Tribes Say No to DFS
Native American tribes, who successfully spent hundreds of millions of dollars in a campaign to have mobile sports betting refuted at the polls, jealously guard all forms of gambling in the Golden State, and they want nothing to get through that doesn’t involve them and allow them control.
Therefore, it isn’t surprising that they have pushed back on DFS sites conducting business in an unlicensed environment. A joint letter from the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations to California legislators articulated their position regarding any legislation drafted to allow DFS contests.
“Despite this pending opinion, some fantasy sports interests are already approaching members of the Legislature to author and/or support a bill on this issue,” the letter reads. “We respectfully urge you to withhold any commitments or authorships until the Attorney General releases his opinion.
“It is essential that all stakeholders—including the legislature—have the benefit of clear legal guidance and facts before proceeding with any legislation. Should a bill be introduced before the Attorney General’s opinion is released and fully evaluated, we will be compelled to oppose it.”
After the letter was received, work on a bill to legalize DFS in the state was abandoned, according to reports.
