California Attorney General Rob Bonta's legal opinion - daily fantasy sports violates state law
Bonta suggests his next step will be enforcement of this law
California is in the process of seeking a ban on sweepstakes casinos
Already with their sights set on sweepstakes casinos, the California state government is now targeting daily fantasy sports.
Speaking during a live segment on a Northern California television news show, California Attorney General Rob Bonta reinforced his opinion that DFS sites are a violation of state law.
Bonta officially released a
statement of his legal opinion on DFS
earlier this month. Assemblymember Tom Lackey requested the legal opinion.
In issuing this legal opinion, Bonta confirmed his belief that DFS sites operating in the Golden Gate State violate California law. DFS sites such as DraftKings, FanDuel, and Underdog operate similarly to traditional fantasy sports. You select teams of players and compete against other selected teams. The difference with DFS is that you are competing in some cases for massive sums of money.
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California Attorney General believes that DFS is sports betting
Bonta's legal opinion is that this is a form of gambling and is no different than sports betting, which is against the law in California.
"Yes, California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located," Bonta wrote. "Such games constitute wagering on sports in violation of Penal Code section 337a."
Bonta went on to note that "(the) California Supreme Court has defined bets or wagers 'as promises to give money or money’s worth upon the determination of an uncertain or unascertained event in a particular way.' We conclude that participants in both types of daily fantasy sports games—pick’em and draft style games—make “bets” on sporting events in violation of section 337a."
Enforcement may be Bonta's next step in this DFS battle
Underdog Sports is going on the offensive against Bonta. Earlier this month, the company filed a lawsuit in Sacramento Superior Court. The suit was a failed bid to gain a temporary restraining order that would have prevented the release of the Attorney General's opinion on the legality of whether DFS is legal in California.
In its filing, Underdog claimed that the release of this legal opinion would do "imminent irreparable harm" to the Underdog brand.
Undaunted, Bonta released his legal opinion just days later. Now, he's insisting he's ready to move ahead with the next step in the legal process. Bonta suggests he's going to begin actively enforcing the law against DFS sites currently operating in California.
California moving toward sweepstakes casino ban
Bonta also noted in his legal opinion that the Attorney General's office does not hold the authority to change any state laws in relation to DFS. The only method available for changing the law would be by introducing a bill in the state government.
A similar process is currently ongoing that could wind up leading to a ban on sweepstakes casinos in California. If passed into law, California Assembly Bill 831 would make it unlawful for any person or entity to operate, conduct, promote, or offer an online sweepstakes game in California.
The bill has already successfully passed through the California Senate Governmental Organization Committee and the California Senate Public Safety Committee via unanimous votes. The California Senate Appropriations Committee is now considering the bill.
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