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The Nature of Daily Fantasy Sports

Daily fantasy sports (DFS) has become a hot ticket for sports buffs seeking fresh ways to engage with their favorite games. Despite its recent surge in popularity, it's not a new kid on the block - it's been around since 2007. This thrilling pastime gives players a chance to roll the dice, flex their skills, and potentially pocket some extra dough.

With sports authorities worldwide either hosting or green-lighting DFS games based on their leagues, it's no wonder folks are chomping at the bit to join the fun. We get it, and that's why we've cooked up this article just for you.

In this piece, we'll pull back the curtain on daily fantasy sports, breaking down how it's played and what it takes to come out on top. We'll cover the nuts and bolts, giving you the lowdown on everything you need to know to dive into this popular game. By the time you've finished this article, you'll be able to tell if DFS is your cup of tea. So, buckle up and let's get this show on the road.

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Daily Fantasy Sports: The Meaning

You may ask, "what is DFS fantasy?" Well, it's not rocket science and is, in fact, easy to understand. However, there's a reason why it is one of the most popular types of online games played right now. And that's because it is fun and can help get some extra cash.

Daily fantasy sports is quite the game if you're talking about innovation. It is based on real-life happenings in the world of sports. It is like a simulated version of sports leagues. More impressive is that you can play it over time and win differently. It is played in leagues such as the English Premier League, La Liga, the NBA, and the NFL. Daily fantasy sports is quite the game if you're talking about innovation. It is based on real-life happenings in the world of sports. It is like a simulated version of sports leagues. More impressive is that you can play it over time and win differently. It is played in leagues such as the English Premier League, La Liga, the NBA, and the NFL.

To play on fantasy sports sites, you need to invest time and effort into it. Since it is based on real-life events, you have to follow up on coaches, players, teams, injuries, and anything concerned with the sport you're playing fantasy sports on. You'd occasionally see fantasy sports players scratching their heads about who to choose, who to start, who not to choose, and whatnot. This is because playing DFS requires you to think from the position of a real-life coach, only virtually.

The main difference between daily fantasy games and full-season fantasy sports is the timeframe. Instead of waiting for the player statistics to accumulate points over a whole season, you'll wait one day or one week to know the results. This one takes less time than season-long games like fantasy football betting and can be played quickly. You can get paid quickly if you play daily fantasy games and win daily.

Unlike full-season fantasy sports, which is more of a social game, DFS betting involves real money paid to participate. Many more people participate in fantasy sports because of the larger payout. However, there is a larger payout because every participant is made to pay a certain fee to play. It's like a casino game. Where to play, you need to stake some money.

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July 25th, 20254 mins

California Attorney General Set to Crack Down on Daily Fantasy Sports

While the legal opinion of the office of the Attorney General about fantasy sports was released last July 3, it is only now that it is taking action against DFS operators. Attorney General Rob Bonta has announced that action is on the horizon for online fantasy sports platforms after the platforms were said to be violating state law.

The Attorney General of California, Rob Bonta, has made it clear this week that enforcement action is imminent against online fantasy sports platforms that continue to run in the state despite being declared illegal. Speaking at a virtual press conference, Bonta stated, "The next step is our enforcement, and laws are meant to be enforced," in response to questions.

His comments follow a legal opinion released on the 3rd of July, in which Bonta determined that daily fantasy sports platforms violate California law because they constitute a form of sports betting - an activity that remains illegal in the state.

Legal opinion marks a first for the state

This is the first time a California attorney general has formally responded to a request for an opinion on the legality of DFS platforms. In contrast, previous attorneys general, including Kamala Harris and Xavier Becerra, declined to weigh in despite pressure from lawmakers and tribal gaming interests. Bonta explained that he responded to the request because the law requires him to do so once it is formally submitted. "It's our duty, not our discretion, but we are mandated, we shall respond and provide an opinion as appropriately requested under the law," said Bonta. "We must, and we did."

Bay Area Assemblyman Marc Levine originally pushed for action as far back as 2015, urging Harris to investigate and shut down sports betting websites. It wasn't until this year, under Bonta's tenure, that the state issued a definitive legal position.

Popular fantasy platforms still operating in the state

Despite the attorney general's legal opinion, several major daily fantasy sports sites were still accessible to Californians as of Tuesday. These include Underdog Fantasy and PrizePicks - two of the most popular platforms in the country. Neither company has issued a public statement in response to Bonta's announcement, nor has the broader Coalition for Fantasy Sports, which represents their interests.

Additionally, DraftKings and FanDuel, which operate independently from the coalition but also offer DFS games, continue to list California as a legal jurisdiction on their websites.

Tribal groups urge action, back Bonta financially

Tribal gaming organizations have been vocal in their support of enforcing California;s gambling laws, particularly when it comes to curbing unlicensed digital sports betting platforms. The California Nations Indian Gaming Association, a powerful voice in state gambling policy, issued a call earlier this month for immediate enforcement following Bonta's legal opinion.

Financial disclosures show that CNIGA's member tribes have been consistent political supporters of Bonta, contributing a total of $334,700 to his campaigns over the years. This includes donations from his time in the State Assembly starting in 2014 through his current role as Attorney General. For his 2026 reelection campaign, Bonta has already received $71,800 from several gaming tribes. In contrast, online fantasy sports companies have made no political contributions to Bonta.

2026 election looms as Bonta takes a stand

With an eye on reelection in 2026, Bonta's firm stand against unlicensed sports betting platforms may resonate with influential tribal interests and voters concerned with regulating online gambling. His office now faces the challenge of enforcing his legal opinion in a digital marketplace where platforms continue to operate freely, at least for now.

When asked directly whether he would pursue those companies still offering services in California, Bonta's answer was unequivocal: "Absolutely." The coming weeks may reveal just how aggressive the attorney general's office will be in taking legal or regulatory steps to shut down these platforms.

July 7th, 20255 mins

California Attorney General: DFS Is Illegal Gambling

Finally, the much-anticipated opinion of the California Attorney General's office on the state of Daily Fantasy Sports has been released. AG Rob Bonta's office has declared fantasy sports as illegal, and says that it breaches the penal code primarily because it involves sports betting. But the governor of California, Gavin Newsom, opposes the decision.

In a high-profile political and legal development, California Governor Gavin Newsom has expressed clear opposition to Attorney General Rob Bonta's recent legal opinion condemning paid fantasy sports in the state. The long-anticipated opinion, officially released on July 3, argues that daily fantasy sports contests - both pick'em and draft-style formats - violate California's laws prohibiting sports betting.

While Bonta's office insists the opinion aligns with existing law under Penal Code section 337a, Governor Newsom has taken a markedly different stance, emphasizing that the opinion is not binding and calling for constructive engagement with stakeholders.

Governor Newsom challenges AG's viewpoint

Responding swiftly to the release, Newsom's spokesperson, Izzy Gardon, distanced the governor's office from the opinion. "The attorney general, in his independent capacity, issued this opinion - not the governor's office," Gardon said. "While the governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders."

The governor's remarks raise questions about whether the opinion will have immediate implications for the legality of fantasy sports in California, especially given the fact that attorney general opinions are advisory and do not carry the force of law.

Opinion classifies DFS as illegal sports betting

The opinion itself spans over 60 pages and draws a firm legal line, declaring both major DFS formats - such as pick'em-style and draft-style contests - as forms of illegal sports wagering.

In particular, Bonta's office labeled pick'em contests - where participants predict athlete performance relative to statistical benchmarks - as "clearly" in violation of the penal code. "Pick'em participants clearly place bets on the outcome of sporting events," the opinion states, equating such formats to proposition bets and parlays commonly found in traditional sports betting.

Draft-style fantasy contests, in which users select rosters of real athletes and earn points based on their statistical output, also failed to pass legal boundaries. The opinion rejected arguments that such games qualify for legal exemptions for skill-based contests or competitions. Instead, it asserted these contests represent a wager on the performance of third parties and are comparable to "bookmaking operations."

Industry and operators push back

Major players in the fantasy sports industry were quick to denounce the opinion, aligning themselves with Governor Newsom's stance. The Coalition for Fantasy Sports - a trade body representing companies like PrizePicks, Underdog, Splash, Dabble, and Betr - expressed strong disagreement with Bonta's conclusions.

"We agree with Governor Newsom - AG Bonta got it wrong," said JT Foley, executive director of the Coalition. "The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized as they specifically declined any similar action."

FanDuel, one of the two largest DFS operators alongside DraftKings, echoed calls for dialogue. "We look forward to meeting with the Attorney General's office to talk through our next steps," a FanDuel spokesperson stated.

In the lead-up to the opinion's publication, we reported that Underdog, a rising DFS operator, filed a lawsuit in an attempt to block its release. However, the case was dismissed by a state court judge, who ruled the company had waited too long to act and failed to demonstrate any immediate legal harm. The judge emphasized that attorney general opinions are non-binding and do not constitute a change in law.

Tribal gaming interests support enforcement

Meanwhile, tribal gaming groups applauded the attorney general’s opinion, pressing the state for enforcement against what they consider unlawful gambling operations. James Siva, chair of the California Nations Indian Gaming Association, stated: "California has long turned a blind eye to illegal gambling - at the direct expense of tribal governments. Untold millions if not billions have been illegally wagered over the past decade." Siva called on state authorities to take immediate enforcement action, citing concerns over consumer protection and the integrity of the state's regulated gaming landscape.

July 3rd, 20254 mins

Court in California Rejects Underdog’s TRO Request for DFS Opinion

A court in Sacramento, California has denied Underdog's request for a Temporary Restraining Order for the Office of the Attorney General Rob Bonta. AG Bonta is scheduled to issue his opinion on Daily Fantasy Sports, and this opinion may substantially affect Underdog's operations in the state.

A California judge has denied Underdog Sports' attempt to block Attorney General Rob Bonta from issuing a legal opinion on the status of Daily Fantasy Sports (DFS) in the state, dealing a blow to the fantasy sports and betting operator's efforts to safeguard its California operations.

Judge Jennifer Rockwell of the Superior Court of California, County of Sacramento, dismissed Underdog's ex parte motion for a temporary restraining order on Wednesday. The motion, filed on July 1, sought to halt the imminent release of Bonta's anticipated opinion, which is widely believed to conclude that most forms of paid fantasy sports are illegal under current California law.

Court finds no urgency for intervention

In her ruling, Judge Rockwell emphasized that Underdog had ample time to challenge the attorney general's authority. The court noted that the DFS legal review was prompted more than 18 months ago when State Senator Scott Wilk formally requested an opinion from Bonta.

"The fact that Petitioners delayed filing this action does not constitute a basis for ex parte relief," the ruling stated. Furthermore, the court underlined that any forthcoming opinion from the attorney general would not carry legal force on its own, nor would it change existing law.

"The Attorney General's forthcoming opinion on fantasy sports does not effect any change in law and does not carry the weight of law," the court noted. "As a result, the court explained that the protective relief we sought was not necessary," a spokesperson for Underdog said in a statement following the decision.

Underdog disputes Bonta's authority and legal interpretation

Despite the court's ruling, Underdog continues to challenge Bonta's authority to issue an opinion on the matter. In its motion for the TRO, the company alleged that any opinion the attorney general might issue would rely on factual determinations that, under California law, fall outside the scope of the opinion process.

"The last two Attorneys General, Kamala Harris and Xavier Becerra, did not issue opinions on fantasy sports," an Underdog spokesperson stated. "Attorney General Bonta has been in office for more than four years without questioning fantasy sports games."

Underdog maintains confidence in the legality of its operations and believes California law supports fantasy sports contests. The company drew parallels to legal battles in other states, noting that courts in both Illinois and New York ultimately rejected attorney general opinions that deemed DFS unlawful. "We are optimistic the law will be followed and are confident in the legality of fantasy sports in California," the spokesperson added. "If a negative opinion is issued, fantasy sports will prevail on the merits."

Opinion expected any day, lawsuit still ongoing

While the request for a restraining order has been denied, Underdog's broader lawsuit against Bonta remains active. The company is contesting whether the attorney general has the legal authority to issue such an opinion on DFS in the first place.

The court's decision means Bonta is now free to release his opinion, which observers expect to arrive as soon as Thursday, the 3rd of July. While it may not carry the force of law, a negative stance from the attorney general could have significant implications for the perception and regulation of fantasy sports in California.

In the meantime, Underdog has signaled that it will continue to operate in the state. We thank the court for that clarity and look forward to continuing to offer our fantasy contests in California, the company said.

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What Types of Sports are Available in Daily Fantasy

There are lots of sports types offered in Daily Fantasy Sports. These games allow you to assemble teams, and you win or lose based on the performance and appearance of those players in real life. Traditional US and outdoor sports are organized for fantasy play, although native sports like Basketball are more popular in the country. The types of sports you can play daily fantasy sports in are:

Football (NFL)

Baseball (MLB)

Basketball (NBA)

College football

College basketball (NCAA)

Hockey (NHL)

Tennis (ATP)

Soccer

Rugby

Cricket

What are the Types of Daily Fantasy Sports Games

Guaranteed prize pool (GPP)

Here, the players set an entry fee for anyone who wants to join the game. Nobody can participate in it without paying the fixed standard fee. The good thing about this type of fantasy sport is that the game will run seamlessly if the contestants are complete. What's more is that irrespective of turnout or participation, the winners' prizes are guaranteed.

Cash fantasy games

This type of fantasy sports game is smaller than the guaranteed prize pool. Here, the team with the most points wins the prize. Players can either join an already-created league or make their own.

Head to head fantasy games

It positions two players against each other in contest mode. Think of it like a tournament semi-final or final. First, it is a straight knockout for the loser, and then, whoever comes out on top takes home all the prizes with the most points.

Fifty/fifty games

The game here is based on hierarchy, and the winners and losers are divided into halves based on the competition. The first 50% that did better got all the prizes. The bottom 50%, however, get nothing from the game.

Multipliers

The winners of this type of fantasy sports get a multiple of their stake if they win. In other words, if you win a game, your entry fee is multiplied by the agreed multiplier, and you're paid out. Depending on the game, this multiple is mostly 5x or 3x the entry fee.

Showdown fantasy games

As the name goes, there is a single showdown to determine the winner. Just one game is played, and whoever wins carries the day.

Leagues

It is like a tournament, only that it involves playing with fewer players.

Beat the score

Here, a score is set, probably by a previous win. The only way to win this type of DFS is to beat the previous score or the designated one.

Qualifiers and satellites fantasy games

In this type, winning aims to get prizes, but promotion to another game. It's like a ladder that helps you get closer to the prize.

How do You Play DFS?

Daily Fantasy Sports (DFS) is as easy as pie and doesn't call for any special skills. It's a game where you go head-to-head with other enthusiasts in a friendly competition. DFS can be a just-for-fun social game that doesn't cost a dime or offer any payout, or it can be a high-stakes game that's a stone's throw away from gambling, where you pony up some cash to enter and stand to win a payout if you come out on top. It's caught on like wildfire across the globe, and it's high time you learned how to play.

First off, you've got to sign up with a site that hosts DFS games. That's your ticket to the game.

Next, regardless of which DFS game you're playing, you've got to put together a virtual team. In most games, you're working with a pretend salary cap or budget that puts a leash on how you assemble your team. Once your team is set, your success hinges on the real-world performances of your chosen players.

When the dust settles after the match or game week, the points racked up by all your players are tallied. If your team's score is through the roof compared to your rivals, you'll be sitting pretty in the winner's circle.

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Can You Call Daily Fantasy Sports Gambling?

The classification of daily fantasy sports (DFS) as gambling is a subject of considerable debate. However, it's crucial to delve deeper into the inherent characteristics of DFS to understand why it's not typically categorized as gambling.

DFS is fundamentally a game of skill, not a game of chance or luck. Participants in DFS contests must employ a variety of skills to succeed. These include a deep understanding of the sport in question, the ability to analyze and interpret statistical data, and the strategic planning necessary to assemble a winning team within the constraints of a salary cap. This is a far cry from traditional gambling activities, which rely heavily on random outcomes.

Moreover, the legal definition of gambling often involves three elements: consideration (an entry fee), chance, and a prize. While DFS involves consideration and a prize, the element of chance is significantly reduced compared to traditional forms of gambling. This is because the outcome of a DFS contest is more influenced by the skill of the participants than by random chance.

In DFS, the participants have control over which players they choose for their team, and their success hinges on their ability to predict player performance based on their knowledge and analysis. This is in stark contrast to games of chance, where the outcome is largely or entirely dependent on luck.

Furthermore, the skill element in DFS is not a one-time factor but is consistent across multiple contests. Skilled DFS players consistently outperform less skilled players over time, further emphasizing the skill-based nature of DFS.

In conclusion, while DFS does involve an element of risk, as do many competitive endeavors, it is fundamentally a game of skill. The success of a participant is more dependent on their knowledge, analytical abilities, and strategic planning than on mere luck. Therefore, it's more accurate to view DFS as a skill-based competition rather than a game of chance or a form of gambling.

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Is Daily Fantasy Sports Legit?

Another question you may have concerns the legality of daily fantasy sports in America. One of the biggest problems people face when playing the game is wondering if it is a crime. The answer to the question depends on your state in America.

Many states in the USA have expressly made it legal to play on fantasy sports sites in their territory, while others have outlawed it. On the other hand, some have left it gray, not explicitly denouncing it while not allowing it.

However, most states in the USA allow it. Therefore, the chances that you're in a state that permits playing on DFS sites are much higher than otherwise. Hence, you can rest assured and check our list below to see if your state allows you to play daily fantasy sports.

What States are DFS Fames Legit and Illegal in the US?

As we said in the last paragraph, here you'll know some states that allow playing on DFS sites and those against it. So, read along to know what your state thinks about it.

The frontier states that uphold playing fantasy sports in their landscape, among others, are:

The states where DFS games are either prohibited or where major providers are not accessible include:

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Upcoming DFS Laws

The casino and sports betting progression in the US has not abandoned fantasy sports as a form of gambling. That's why it had to take legislative actions to make it legitimate in the state. At the turn of the 2010s, casino legalization became a heavy topic. And, around 2015 and 2016, states started legitimizing and regulating DFS around America. The glaring thing is that different states have taken different approaches to control DFS in their territories.

For some states, fantasy sports is just a game. Hence, they put only fair laws to guide their activity in the state. But on the other hand, some states consider it a form of gambling and regulate it just like a casino or sports betting site will be regulated. Either way, it is only a matter of time before playing on the best DFS site is legalized in American states.

FAQ

Is there a lot of money in DFS games?

The potential to earn money in daily fantasy sports (DFS) games varies greatly based on the type of games you participate in, the amount you're willing to invest, and your level of skill. Some players engage in large-scale tournaments, which often require substantial entry fees but offer the possibility of winning significant sums, sometimes reaching into the thousands or even millions of dollars. However, these tournaments are highly competitive and carry a high level of risk. To secure a portion of the prize pool, you must outperform hundreds or even thousands of other participants. On the other hand, you might choose to participate in cash games. These are smaller contests with more modest entry fees and more predictable payouts. While they're generally easier to win, the returns are also smaller. To consistently profit from these games, you'll need a sound strategy for managing your bankroll and a thorough understanding of the game. In essence, while there is the potential for substantial earnings in DFS games, achieving this is no simple task. Success in this highly competitive and unpredictable market requires a combination of strategic acumen, discipline, and a touch of good fortune.

Are DFS games and sports betting the same thing?

Considering the standpoint of many officials, sports betting is more of a skill-based game than luck. Most people also consider fantasy sports to be skill games. However, DFS is mostly considered different from sports betting in the US.

Are professional sports authorities in tune with DFS

Most sports league authorities in America consider fantasy sports betting a legitimate game mode. The National Basketball Association (NBA), National Hockey League (NHL), and Major League Baseball (MLB) have some stakes in DFS platforms in the country. Therefore, they consider it major as regards American sports. Taking this outside the US, the English Premier League, for instance, have its fantasy football site where they conduct fantasy sports, although it is more of social gaming than gambling.

Can the government tax DFS winnings?

Put plainly, yes! Daily fantasy sites winnings are taxable in most states where it is allowed. Hence, you can expect to get taxed on your DFS winnings.

Author: Travis Asherton

Updated: 4 weeks ago

Author: Travis Asherton

Editor | Sports Betting Expert

Updated: 4 weeks ago