California's Proposed DFS Ban Challenged by Underdog Fantasy in Legalaction
Underdog Fantasy Sues California Attorney General to Prevent DFS Ban
In a legal battle that could reshape California's sports betting landscape, daily fantasy sports (DFS) platform Underdog Fantasy has filed a lawsuit against California Attorney General Rob Bonta. The company is seeking to prevent Bonta from declaring DFS as an illegal form of gambling under California state law.
The lawsuit, filed on July 1, 2025, with the Sacramento County Superior Court, asserts that Bonta lacks the authority to issue such an opinion. Underdog Fantasy argues that this opinion could constitute overreach of the Attorney General's authority and negatively impact a thriving industry serving millions of Californians.
Under California law, a game's outcome must be largely determined by chance to be deemed illegal gambling. However, Underdog Fantasy claims that DFS is a contest of skill, requiring significant research, taking into account statistics, matchups, and other performance-related data.
Bonta's anticipated opinion, while not binding, carries significant weight. If issued, it could potentially shut down the DFS industry in California, which operates in a legally gray area. The state's enforcement discretion regarding DFS largely rests with the Attorney General's office.
The company has met with Attorney General Bonta and his representatives and lobbied for the opinion to be issued, without naming specific tribes. However, tribal gaming interests are reportedly backing Bonta's position, viewing DFS platforms as illegal gambling competing against tribal gaming revenues.
The market impact of this legal battle could be substantial. If DFS platforms are effectively banned or forced to cease operations in California, the DFS operators may lose a sizeable chunk of their revenue and customer base. At the same time, California's tribal casinos could benefit by reducing competition in the sports betting-related gambling market.
The Governor of California and some other state officials have expressed disagreement with the AG's opinion, and the status of DFS remains uncertain from a regulatory viewpoint. The Attorney General's office has not commented on the litigation.
Underdog Fantasy, valued at $1.2 billion, claims it would face "imminent irreparable harm" if forced to exit California, where its platform hosts hundreds of thousands of users and about 10% of its revenue comes from. The company is requesting a court-issued writ of mandate and an immediate temporary restraining order to block the anticipated opinion.
As of July 2, 2025, a Sacramento judge denied Underdog’s request to block the opinion release, stating Underdog had not demonstrated immediate harm[1][4]. The legal battle between Underdog Fantasy and California Attorney General Rob Bonta is expected to continue, with potentially far-reaching implications for the DFS industry and California's gaming market.
[1] CalMatters. (2025, July 1). Underdog Fantasy sues California Attorney General Rob Bonta to block DFS ban. Retrieved from https://calmatters.org/news/politics/2025/07/underdog-fantasy-sues-california-attorney-general-rob-bonta-to-block-dfs-ban/
[2] Los Angeles Times. (2025, July 1). California tribes back AG Bonta's stance against daily fantasy sports. Retrieved from https://www.latimes.com/california/story/2025-07-01/california-tribes-back-ag-bonta-s-stance-against-daily-fantasy-sports
[3] Politico. (2025, July 2). California DFS ban faces opposition from Governor and state officials. Retrieved from https://www.politico.com/news/2025/07/02/california-dfs-ban-faces-opposition-from-governor-and-state-officials-00047133
[4] Sacramento Bee. (2025, July 2). Judge denies Underdog Fantasy's request to block DFS ban. Retrieved from https://www.sacbee.com/news/politics-government/capitol-alert/article263272947.html
- The ongoing lawsuit between Underdog Fantasy and California Attorney General Rob Bonta includes a request for a writ of mandate and an immediate temporary restraining order to prevent DFS from being declared illegal under California state law.
- If DFS is indeed classified as gambling in California, it could potentially lead to the shutdown of the DFS industry and the loss of a significant portion of revenue for operators like Underdog Fantasy.
- The legal status of DFS in California remains unclear, as the Governor and some other state officials have expressed disagreement with the Attorney General's opinion.
- The Sacramento County Superior Court case, filed on July 1, 2025, asserts that Bonta lacks the authority to issue an opinion that could negatively impact the business and finance sector of the DFS industry, serving millions of Californians.
