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.