A California court has denied Underdog Sports’ request to block Attorney General Rob Bonta from issuing his long-anticipated legal opinion on the legality of daily fantasy sports (DFS) in the state. The ruling comes as both Underdog and PrizePicks, two leading DFS operators, adjust their strategies ahead of Bonta’s expected decision, which may declare most DFS formats, including peer-to-peer games, illegal.

On July 1, 2025, Underdog filed a lawsuit in Sacramento County Superior Court seeking to prevent Bonta from releasing his opinion. The company argued that such a ruling could harm the DFS industry by forcing operators to cease operations in California. However, according to SBC Americas, Judge Jennifer Rockwell rejected Underdog’s motion for an emergency temporary restraining order (TRO) on July 2, stating that the company had “ample opportunity” to challenge the opinion and had delayed its filing for over 18 months.

Judge Rockwell further clarified that Bonta’s opinion would not have the force of law, as it would merely be advisory. “The Attorney General’s forthcoming opinion on fantasy sports does not effect any change in law,” the judge wrote, emphasizing that the opinion would not carry the weight of law or impose any immediate legal consequences.

Underdog’s Legal Challenge and Its Impact on DFS Operators

Underdog, in its TRO request, also questioned the authority of Bonta’s office to issue such an opinion. The company claimed that Bonta’s investigation into DFS, initiated by a request from Senator Scott Wilk in 2023, was improper, and the Attorney General lacked the legal grounds to make a definitive ruling on the legality of DFS.

“We are optimistic the law will be followed and are confident in the legality of fantasy sports in California,” an Underdog spokesperson said after the ruling. The company argued that any opinion on the legality of DFS issued by Bonta would harm their business operations and violate clear statutory constraints on the Attorney General’s authority.

Despite the setback in court, Underdog has vowed to continue offering DFS contests in California, as the lawsuit challenging Bonta’s authority remains in progress. Underdog’s stance reflects broader concerns within the DFS industry about the future of their operations in California, the largest DFS market in the U.S.

PrizePicks Shifts to Peer-to-Peer Model in Response to Legal Uncertainty

In light of the ongoing legal challenges surrounding DFS in California, PrizePicks, a competitor to Underdog, has proactively switched to its Arena format, a peer-to-peer model, to adapt to the uncertain regulatory environment. The company made the switch on June 30, 2025, moving away from the traditional Pick’em format, where users bet against the house. Arena allows users to compete against one another, potentially making it a more defensible model as California’s legal landscape evolves.

“We’re excited to now offer Arena to players in California,” said Elisa Richardson, Vice President of Communications for PrizePicks. “Arena has been incredibly well received by our community, and we’ve seen continued growth as more players engage with this peer-to-peer format.”

While PrizePicks’ shift to Arena could help the company navigate the current legal uncertainty, the operator’s future in California remains closely tied to Bonta’s opinion. Legal experts expect the opinion to declare most DFS offerings, including peer-to-peer games, illegal in the state. In response to this, PrizePicks’ move to a peer-to-peer model is seen as an attempt to maintain operations while mitigating the legal risks associated with traditional DFS formats.

Legal Implications for California’s DFS Industry

As California’s DFS market braces for a potential ban, the stakes for operators like Underdog and PrizePicks are high. The state is home to a massive sports audience, and a ban on DFS could result in substantial revenue losses for these operators. Underdog has already stated that 10% of its revenue comes from California players, underscoring the financial importance of the state.

The court’s decision to allow Bonta’s opinion to be released without interference could signal that the end of DFS as a legal activity in California is imminent. However, with companies like Underdog and PrizePicks adjusting their offerings, it is clear that the industry is not backing down without a fight.