Underdog Fantasy announced a fund called GuardDog to support startups working on responsible gambling. The company will provide $1 million in seed funding, and an advisory panel will include industry figures and former regulators.
The fund could provide capital to startups developing responsible-gambling initiatives relevant to operators and suppliers.
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Arizona’s Department of Gaming warned licensed operators that partnerships with event-contract businesses could affect their state licensing decisions. Director Jackie Johnson said the department may scrutinise ties to firms selling contracts unlawfully in other jurisdictions, including relationships with designated contract markets and futures commission merchants.
California Attorney General Rob Bonta said he would take enforcement action against daily fantasy sports operators after concluding in a 3 July opinion that their contests violate state law. The opinion is advisory and does not change the law; Governor Gavin Newsom disagreed with its conclusion, while the California Nations Indian Gaming Association urged enforcement.
A California court denied Underdog Fantasy’s request for a temporary restraining order against an expected opinion from the state Attorney General on paid fantasy contests. The judge said the opinion would be advisory and would not change state law, and that Underdog had delayed bringing its challenge.
A California court rejected Underdog Fantasy’s request for an emergency order blocking an anticipated opinion from the state attorney general, according to the report. In a ruling issued on 1 July, the judge said the company had waited too long and had not shown immediate legal harm; the opinion would be advisory and would not itself change state law.
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.