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California attorney general says daily fantasy sports constitute illegal gambling

Regulation

California Attorney General Rob Bonta has issued a legal opinion that daily fantasy sports platforms fall under the state’s definition of gambling and are illegal in California. Bonta said paid entries with cash prizes based on athletes’ performances amount to sports betting; Governor Gavin Newsom’s office said he disagrees with the opinion’s outcome.

The opinion challenges the legality of DFS operations for players located in California, while the governor’s disagreement leaves the state’s position contested.

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Underdog Fantasy sues California attorney general over anticipated DFS opinion

Underdog Fantasy filed suit in Sacramento County Superior Court on 28 June seeking to block California Attorney General Rob Bonta from issuing anticipated guidance that could classify daily fantasy sports as illegal gambling. The company argues that the attorney general lacks authority to make that determination and requests a writ of mandate and temporary restraining order; the attorney general’s office has not commented.

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