California Attorney General set to rule that online fantasy sports platforms are illegal

California’s online fantasy sports operators are preparing for a potentially shocking legal hit and several sources report that Attorney General Rob Bonta is set to announce in the next few days that such services are illegal statewide.
The expected legal opinion, initially reported by KCRA 3, could jeopardize billions in revenue for companies like DraftKings, which has been working in California for more than a decade.
Although Bonta’s office has refrained from any statement, the move follows mounting calls for legal clarity from tribal groups and lawmakers who argue fantasy sports operate in a legal grey area under state gaming regulations.
“Illegal and unregulated gaming has been a problem in California for decades,” James Siva, Chairman of the California Nations Indian Gaming Association, wrote in a statement to KCRA. “These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling.”
Critics argue that fantasy sports games, which require participants to pay to enter contests based on athlete performance, are games of chance that violate state law against unlicensed gambling.
Operators PrizePicks and Underdog Fantasy warn that the decision will affect millions of California platform users. The Coalition for Fantasy Sports urged the attorney general to consider the views of players who have enjoyed the games for years.
The California Department of Justice is expected to release a formal judgment on 3 July.
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