California AG Poised to Deem Daily Fantasy Sports Illegal

Industry players have already begun preparing for a paradigm shift.

Ziv Chen

Last Updated: June 26, 2025 2:18 PM EDT • 2 minute read

California AG Poised to Deem Daily Fantasy Sports Illegal — Pictured: Rob Bonta, Attorney General of California, speaks to the attendees at a Protecting the People Community Impact Hearing. Photo by John Meore/The Journal News / USA TODAY NETWORK via Imagn Images.

California Attorney General Rob Bonta will release a legal opinion in the coming days that would declare online Daily Fantasy Sports (DFS) illegal in the state. Insiders familiar with the move told KCRA 3 about the impending announcement.

While Bonta's office has not yet spoken, industry players have already begun preparing for a paradigm shift. The Coalition for Fantasy Sports raised an alarm, stating that such an opinion would deprive Californians of an entertainment source they have consumed in large numbers for decades.

California sports betting remains prohibited despite several failed attempts to legalize it, while Daily Fantasy Sports have operated without explicit regulations in the state. However, DFS games have been the target of increasing scrutiny from legislators and tribal governments.

DFS participants pay to compete in contests and assemble virtual rosters of professional players. Winners are paid based on the players' actual world performance, a factor critics argue introduces an element of chance that conflicts with state gaming laws.

The Tribal Alliance of Sovereign Indian Nations and the California Nations Indian Gaming Association recently advised lawmakers to postpone any DFS bill until Bonta's opinion is released. Tribal leaders have always been concerned that unregulated gambling undermines state sovereignty and public protections.

Tribal groups back broad prohibition of sweepstakes casinos

DFS gaming isn’t the only type of gambling that faces pressures for Native American tribes. The Indian Gaming Association (IGA) and California Nations Indian Gaming Association are backing legislation to close sweepstakes casinos in California. IGA officials discussed the new legislation at a webinar on June 25, targeting all levels of the sweepstakes business.

IGA President Ernie Stevens Jr. indicated that tribal nations and big gaming companies have the common goal of eliminating such facilities. He mentioned their lack of regulation and potential danger to customers.

California isn’t the only US state with significant opposition to sweepstakes casinos. New York lawmakers recently sent a bill to ban sweepstakes casinos to Governor Kathy Hochul.

Sweepstakes industry fights back

Sweepstakes casino trade groups are opposing Assemblymember Avelino Valencia's legislation, AB 831, which would prohibit the industry in California. The Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA) released criticism of the bill as a hasty and under-the-radar policy proposal.

The SPGA called the move a "backroom ban," lamenting its inclusion in a stand-alone tribal gaming bill without public hearings or economic impact studies. Former congressman Jeff Duncan, now an SGLA official, said the moves would stifle innovation and investment in California's digital economy.

The bill remains alive in the 2025 session and can carry over into 2026 as both sides prepare for an extended policy battle.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.