California Attorney Signals Crackdown on Fantasy Sports Platforms

California Attorney General Rob Bonta has reaffirmed that daily fantasy sports (DFS) platforms currently operating in the state violate existing gambling laws and confirmed that his office will actively enforce those laws. This marks a significant development in an ongoing regulatory dispute surrounding the legality of DFS in California.

Bonta made the comments during a live interview, the first time he has publicly addressed the issue on camera since the California Department of Justice (DOJ) issued a formal legal opinion earlier this month. That opinion explicitly classified daily fantasy sports as illegal gambling under state law, challenging the long-held position of many DFS operators that their platforms fall outside traditional gambling statutes.

 

Key Points

• California DOJ classifies daily fantasy sports as illegal gambling under state law.

• Attorney General Rob Bonta commits to enforcing legal action against DFS platforms.

• Consumer groups express concerns over government overreach and restrictions on player freedom.

“It is a violation of the law, as our legal opinion has indicated, to provide a platform in the state of California to get to California consumers for the daily fantasy sports at issue,” Bonta stated. He emphasized that “laws are meant to be enforced and we expect our legal opinion to be followed and complied with,” signaling an end to the regulatory ambiguity that has allowed DFS operators to continue business in the state.

When pressed on whether his office would proceed with enforcement actions, Bonta was unequivocal: “Absolutely.” The DOJ’s formal legal opinion and Bonta’s public stance effectively shift the debate from questions of legal interpretation to issues of compliance and enforcement. Until now, DFS platforms in California have operated in a legal grey area, facing regulatory scrutiny but avoiding direct penalties or shutdowns.

However, the move has drawn criticism from civil liberties and consumer advocacy groups. Organizations such as the Sports & Public Gaming Alliance (SPGA) and the American Civil Liberties Union (ACLU) have voiced concerns about the anti-DFS legislation, arguing it restricts consumer freedom and represents government overreach. These opposing views underscore a broader national conversation about the evolving landscape of fantasy sports and gambling regulation. Proponents of DFS platforms contend that these services provide a skill-based form of entertainment distinct from traditional gambling, while regulators highlight the risks of unregulated betting and potential consumer harm.

 

It is a violation of the law, as our legal opinion has indicated, to provide a platform in the state of California to get to California consumers for the daily fantasy sports at issue.

 

The Future

California’s Attorney General appears poised to take a firm regulatory approach, potentially influencing how other states address the status of daily fantasy sports. The coming months will likely see increased scrutiny and possible enforcement actions against DFS operators who continue to serve California residents. As the legal and regulatory environment develops, DFS platforms will need to weigh compliance with state law against the financial incentives of maintaining access to California’s large consumer market. The enforcement stance articulated by Bonta signals that the state’s tolerance for the current ambiguity is at an end.