California Attorney General Rob Bonta is expected to issue a legal opinion declaring all online fantasy sports platforms unlawful within the state, according to a report from KCRA-TV.
This move would align California with a growing number of states seeking to curtail online gambling operations that resemble sweepstakes. Similar efforts have surfaced in states such as Louisiana and New York, while Connecticut and Montana have already enacted legislation banning certain forms of online fantasy sports.
Earlier this week, the California Nations of Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nations reportedly cautioned lawmakers about attempts by some fantasy sports operators to alter their legal classification within the state.
It remains uncertain whether other online gaming categories will be affected by this forthcoming opinion. Legally, traditional fantasy sports differ from general online gambling, as they are typically considered games of skill rather than chance. Courts have previously upheld the legality of fantasy sports on that basis.
In these games, participants assemble teams made up of real athletes from leagues such as the NFL, NBA, MLB, and NHL. Points are awarded based on the real-world performance of the selected players.
KCRA-TV reported that the California Department of Justice is expected to release its official opinion ahead of the Fourth of July holiday.
In response to the looming legal change, the Coalition for Fantasy Sports—which includes companies such as Betr, PrizePicks, Underdog Fantasy, Dabble, and Splash Sports—issued a statement urging reconsideration.
“We hope the attorney general’s office will consider the views of sports fans across the state before making a decision,” the coalition said in a statement to the station. “Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away.”