Underdog Sports has sued the office of California Attorney General (AG) Rob Bonta in a bid to block him from declaring fantasy sports gambling as illegal in the Golden State.
Despite daily fantasy sports (DFS) operators having held a presence in California for more than 10 years, it is widely believed that Bonta’s office will declare the sector illegal at some point this week.
According to local reports, Bonta’s decision should come by 3 July.
His office first began analysing the legality of the sector in October 2023 at the request of Senator Scott Wilk, who has since left office.
However, before any official announcement has been made by the AG, Underdog Sports has taken pre-emptive legal action and filed a lawsuit as well as requested an ex parte temporary restraining order.
As per Underdog’s filing, the operator has claimed that were Bonta to decree such an opinion, it would “poison a thriving industry”.
That would include serving as an obstacle to companies that offer DFS but also hinder the progress of suppliers that process payments and provide platforms.
The New York-headquartered company has claimed the AG’s office has vowed to use the threat of enforcement action to try and pressure Underdog into ceasing operations in California.
Additionally, Underdog argues that such a decision is actually outside of Bonta’s remit.
The operator noted: “Attorney General Bonta should be enjoined from doing so, not because he is wrong in his views on the legality of fantasy sports – though he certainly is – but because by statute, the Attorney General can only issue opinions on questions of law and can only answer questions that relate to the duties of the official requesting the opinion.
“Neither is true here. Thus, Attorney General Bonta lacks authority to issue the opinion and should be enjoined from doing so.”
A California DFS ban would impact Underdog significantly, with reports suggesting 10% of the company’s total revenue stems from the state.
Bonta’s stance is that the real-money sports contests, particularly fantasy pick’em – where users predict the performances of two or more athletes against the house – are effectively no different from parlays offered by sports betting operators.
Underdog Sports issued a statement on the matter to industry newsletter The Closing Line, in which it reaffirmed its belief that fantasy sports betting would remain legal in California despite Bonta’s best efforts.
A spokesperson said: “Any potential opinion is flawed because it has to rely on factual determinations the opinion process cannot and should not resolve, according to California law.
“The last two attorneys general, Kamala Harris and Xavier Beccera, did not issue opinions, and Attorney General Bonta has been in office for more than four years without questioning fantasy sports games.
“We are optimistic the law will be followed and are confident in the legality of fantasy sports in California.
“If a negative opinion is issued, fantasy sports will prevail on the merits, no different than in New York and Illinois where courts rejected the similarly wrong opinions of those states’ attorneys general.”
In a statement provided to local television network KCRA 3, the Coalition for Fantasy Sports, which includes Betr, PrizePicks, Underdog Fantasy, Dabble and Splash Sport, has called on Bonta to consider consumers’ desires.
“We hope the Attorney General’s office will consider the views of sports fans across the state before making a decision.
“Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away.”
The post Underdog Sports sues California AG over looming anti-DFS opinion first appeared on EGR Intel.
DFS operator has taken pre-emptive legal action against the office of Rob Bonta, days before he is expected to publicly declare the sector illegal
The post Underdog Sports sues California AG over looming anti-DFS opinion first appeared on EGR Intel.