California AG Rules DFS Illegal, Operators Fight Back

DraftKings, FanDuel, and Underdog Fantasy have stated they do not currently consider any short-term market retreat in California

Ziv Chen

Last Updated: July 7, 2025 3:56 PM EDT • 2 minute read

California AG Rules DFS Illegal, Operators Fight Back — Pictured: The websites of the fantasy sports sites DraftKings and FanDuel are seen on a computer screen. Photo by Richard B. Levine / SIPA via Imagn Images.

Daily Fantasy Sports (DFS) has run afoul of California law, according to Attorney General (AG) Rob Bonta's interpretation in a statement released last week. He concluded that pick'em and draft-type games constitute illegal sports betting.

According to Bonta's judgment, these competitions involve betting on real-world sporting events and are, therefore, illegal under California laws that prohibit sports betting.

Despite the opinion, DraftKings, FanDuel, and Underdog Fantasy have stated they do not currently consider any short-term market retreat in California. FanDuel said it would be ready to talk next steps with the attorney general's office, and DraftKings renewed its long-held assertion that fantasy sports are games of skill and not chance.

DraftKings also reported that it has persisted as in prior precedent in 24 states and at the federal government level.

California Governor Gavin Newsom formally disagreed with AG Bonta's interpretation. In a statement to KCRA3 News, a spokesperson for the Governor said that “he welcomes a constructive path forward in collaboration with all stakeholders.”

Class Action Suits

In line with the opinion, four individual class action suits were filed in the federal court in California against leading DFS platforms: DraftKings, FanDuel, PrizePicks, and Underdog Fantasy have been named in the class action suits filed by several consumer rights law firms that the operators were running unlawful betting services disguised as fantasy sports.

The suits bring restitution and injunctive relief for California consumers who enrolled in the services. The plaintiffs claim that DFS competitions resemble traditional sports betting and were promoted to deceive consumers regarding their legality. State court suits allege violations of the California Penal Code, the Unfair Competition Law, and the Consumer Legal Remedies Act.

The attorneys in the suits cited the AG opinion as the basis for the suits. Wesley M. Griffith said the opinion "corroborates the ultimate theory" in the suits. Margot Cutter cited the worth in honest advertising, with James Bilsborrow accusing the companies of deliberately creating a false legal narrative.

Peter Silva cited that the lawsuit aims to ensure there's law adherence in California and corporations are held accountable.

RotoWire fantasy football draft kit app

With increased regulatory attention in California regarding the future of DFS, RotoWire has rebranded and introduced a new product specifically created to optimize the fantasy sports user experience. By means of the RotoWire Football Draft Kit app, members will gain access to real-time analysis, player projections, and strategy materials in advance of the upcoming NFL regular season.

Partner Peter Schoenke framed the newly rebranded app as leveraging the firm's long-time industry expertise in a convenient internet format. Reflecting back upon the history of the fantasy sports sector since 1997 when RotoWire opened its doors, Schoenke framed the rebrand as the next inevitable step in addressing user needs as they exist today.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.