California may soon make all fantasy sports illegal, as confirmed by several sources. In a statement, the Coalition of Fantasy Sports, which includes such platforms as PrizePicks, Betr, Splash Sports, Underdog Fantasy, and Dabble, have deemed the prospective change devastating to millions of DFS fans in California.

Rob Bonta, the Attorney General of California, is on the brink of issuing a legal opinion that could deem online fantasy sports illegal in the state, according to multiple sources. The decision, expected in the coming days, may fundamentally alter the future of fantasy sports in California and put at risk billions of dollars in business funds.

Bonta's office has remained silent on the matter, refusing to comment publicly as of Wednesday last week. However, sources familiar with the opinion say it will provide detailed reasoning and legal grounding for the anticipated conclusion that online fantasy contests constitute illegal gambling under current California law.

Fantasy sports industry reacts with alarm

The Coalition for Fantasy Sports - comprising platforms such as PrizePicks, Betr, Splash Sports, Underdog Fantasy, and Dabble - issued a statement calling the expected opinion 'devastating' for millions of Californians who have engaged in daily fantasy sports for over a decade.

"We hope the Attorney General's office will consider the views of sports fans across the state before making a decision," a coalition spokesperson said. "Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away."

The platforms typically allow users to enter paid contests and compete for prizes based on the real-life performance of selected athletes - an activity that has long occupied a legal gray area in California.

Tribal leaders urge compliance with state law

Meanwhile, Bonta's pending opinion is being closely monitored by California's tribal gaming interests. On Monday, the Tribal Alliance of Sovereign Indian Nations and the California Nations of Indian Gaming Association urged lawmakers to withhold action on any proposed legislation regarding fantasy sports until the Attorney General's opinion is released.

James Siva, CNIGA Chairman, praised the anticipated move. "Illegal and unregulated gaming has been a problem in California for decades," Siva said in a statement. "These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling. We are glad to see Attorney General Bonta address the issue and look forward to lawbreakers being held to account."

Years in the making: legal opinion rooted in longstanding concerns

The legal question of whether fantasy sports constitute a 'game of skill' or a 'game of chance' - the latter being generally illegal in the state without proper licensing - has simmered for years. In 2023, then-State Senator Scott Wilk requested clarity from the Department of Justice, stating that participants have no control over how athletes perform, which may render fantasy sports gambling under California law.

"Daily fantasy sports appears to be a game of chance not otherwise permitted by the laws of California," wrote Wilk in his request. After Wilk's term ended, Assemblyman Tom Lackey took up the cause, pushing for a legal opinion to clarify the issue.

Lackey said that while he hasn't seen the final opinion, he's been in contact with the DOJ to ensure public sentiment was acknowledged. "I was very interested in making sure that the people and their opinion was at least acknowledged," he said. "I think it's credible. I think it's important that (Bonta) is responding."

Legal showdown on the horizon

As California waits for Bonta's final determination, legal experts anticipate the issue may ultimately be settled in court. Chris Micheli, adjunct professor at McGeorge School of Law and lobbyist, said, "If there are any alleged activities that violate the law, we would expect a lawsuit to be filed by the attorney general. Ultimately, a court will decide if the AG's opinion is the right one, but courts in California give a fair amount of deference to the Attorney General."

Meanwhile, the potential crackdown is raising eyebrows among members of the public and media personalities alike. Carmichael Dave, a Sacramento-based radio host, questioned the logic of banning fantasy sports while allowing other forms of financial risk-taking. "Why can I bet on the latest crypto scheme or my life savings on stock apps," he asked, "but I can't bet on whether the Giants or the Niners or the Kings are going to win a ball game?"

The California DOJ is expected to release Bonta's legal opinion by July 3.