California: Attorney General Considers Fantasy Sports Illegal Gambling

California: Attorney General Considers Fantasy Sports Illegal Gambling

California Attorney General Rob Bonta issued an advisory opinion classifying daily fantasy sports as illegal sports betting under state penal code.

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The opinion — long-awaited and triggered despite legal opposition from Underdog Sports — considers that these competitions, even if they involve skill or strategy, remain betting because they depend on uncertain outcomes, such as those of sporting events.

Operators insist on continuing despite legal opinion in California

Although this opinion has no force of law, legal experts point out that it could influence future regulatory measures. For now, operators like Underdog and DraftKings have made it clear that they will continue to offer these tournaments, stating their intention to dialogue with the authorities. FanDuel and Governor Gavin Newsom also expressed openness to exploring avenues of understanding.

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Tribes demand greater control over illegal gambling

The ruling has reactivated the debate among regulators, indigenous tribes, and companies in the sector about what types of games should be allowed. Some tribes, such as those represented by CNIGA, welcome the decision and call on the state for firmer action against illegal gambling, to which they attribute millions in uncontrolled losses.

Bonta opens the door to new rules in the gaming sector

Rather than closing a discussion, Bonta’s opinion presents a new regulatory scenario: one where the aim is to balance legality, economic interests, and the rights of indigenous communities. Everything indicates that the next chapter of this dispute will be played out at the dialogue table.

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