Online fantasy sports may soon be classified as illegal gambling under California law, as Attorney General Rob Bonta prepares to issue a long-awaited legal opinion that could have sweeping implications for fantasy sports operators and millions of players across the state.

Although Bonta’s office has not publicly confirmed the upcoming decision, multiple sources speaking to KCRA 3 on condition of anonymity say the legal opinion is expected within days, possibly by July 3. The ruling would reportedly categorize all daily fantasy sports (DFS) platforms—such as those operated by PrizePicks, Betr, Underdog Fantasy, and others—as unauthorized gambling activities, as reported by the Sacramento-based NBC affiliate.

While online sports betting is already prohibited in California, fantasy sports have occupied a legal gray area for years. In these games, users pay to enter contests by assembling virtual teams of real-life athletes, competing for cash prizes based on player performance. This has raised ongoing questions about whether the element of chance outweighs the skill involved—an important legal distinction under California gaming laws.

Tribal Groups Urge Delay on DFS Legislation

Several tribal organizations, including the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations, have actively requested that lawmakers delay any movement on fantasy sports legislation until the Attorney General’s opinion is formally released. They’ve expressed concerns about consumer safety and regulatory oversight.

“Illegal and unregulated gaming has been a problem in California for decades,” said CNIGA chairman James Siva. “These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling.”

In a recent letter to state legislators, the tribal groups suggested that certain fantasy sports operators may be attempting to influence legislation in their favor before the legal opinion is made public. They warned lawmakers against acting prematurely.

Public Backlash and Industry Pushback

The Coalition for Fantasy Sports, which includes companies like Splash Sports and Dabble, has criticized the potential ruling, warning it would impact the daily enjoyment of millions of Californians.

“We hope the Attorney General’s office will consider the views of sports fans across the state before making a decision,” a spokesperson reportedly told KCRA 3. “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.”

Daily fantasy sports became widespread in California during the early 2010s, when major platforms began offering prize-based contests. However, calls for legal clarification date back to at least 2015, when then-Attorney General Kamala Harris received similar requests—none of which were resolved until now.

Legal Challenges and Broader Context

The move toward regulatory clarity comes amid a growing number of legal disputes tied to fantasy and sweepstakes-style gaming. A class-action lawsuit filed on June 1 accuses DraftKings of operating illegal gambling under the guise of DFS in California. Plaintiffs claim the platform misleads users by promoting what is, in effect, unlicensed betting.

These concerns echo recent legal challenges nationwide, including a May 2024 lawsuit filed in Pennsylvania where users claimed DraftKings exploited their gambling addictions.

Meanwhile, the sweepstakes model has also come under fire. A California man’s case against the site Stake.us was recently moved to arbitration after a federal judge ruled that the plaintiff had agreed to the site’s terms, including a binding arbitration clause.

State lawmakers have also raised alarms. Former State Senator Scott Wilk wrote to the Department of Justice in 2023, warning that DFS could constitute illegal gambling under California’s laws, which prohibit “any game of chance” without proper licensing. Wilk argued, “Daily fantasy sports appears to be a game of chance not otherwise permitted by the laws of California,” according to the news outlet.

His successor, Assemblyman Tom Lackey, has continued pursuing legal clarity. “I was very interested in making sure that the people and their opinion was at least acknowledged,” Lackey reportedly said, praising Bonta’s willingness to address the issue.

A Turning Point for Fantasy Sports in the Golden State

As the state awaits the Attorney General’s ruling, industry observers say the outcome could reshape the digital sports gaming environment in California. With billions of dollars and millions of users on the line, operators and lawmakers alike are bracing for the impact of what may be a pivotal moment in the ongoing battle over gaming regulation.