California is doubling down on its efforts to get rid of sweepstakes casino games in the state.
In an unexpected turn of events, California Attorney General Rob Bonta is expected to issue a groundbreaking opinion that could declare all online fantasy sports platforms illegal in the state.
California is following the lead of states like New York and Louisiana by proposing a law to ban any support or promotion of sweepstakes-style online casinos. This would apply not only to the casinos themselves but also to anyone involved, like payment processors, game suppliers, platforms, or influencers who promote them.
If this law passes, California would join Connecticut and Montana in officially banning these operations.
This situation has led people who play fantasy and daily fantasy sports to wonder if these changes could impact other types of online gaming. Even though traditional fantasy sports are legally different, the larger discussion about what's legal in online gaming is gaining speed.
This decision could affect millions of sports fans and put the industry's multi-billion-dollar revenue at risk. KCRA-TV is reporting that The California Department of Justice is expected to release the opinion by July 3.
As we await the official announcement, let's take a closer look at the implications of this potential decision and explore the history of fantasy sports in California.
Understanding Fantasy Sports and Legal Gray Areas
Fantasy sports involve participants selecting a team of real-life athletes from various professional leagues.
The participants earn points based on the actual performance statistics of those athletes during games. This unique melting pot of strategy and sports knowledge has blurred the lines between skill and chance, raising questions about its legality, especially in California.
Despite the widespread popularity of fantasy sports, California has traditionally maintained stringent regulations against online sports gambling. The sector occupies a legal gray area, often leaving it vulnerable to scrutiny. Lawmakers and tribes have advocated for clarity, noting that current ambiguities challenge consumer protection and regulatory compliance.
The California Nations of Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nationals wrote a letter to California lawmakers. In the letter, they warned that fantasy sports companies might be trying to influence laws about their legality in the state. The group advised lawmakers to hold off on any decisions until Attorney General Bonta shares his official opinion.
People Have Been Playing Fantasy Sports in California for Over 20 Years
Fantasy sports have a long-standing history in California, with the movement gaining traction in the early 2000s.
Initially, enthusiasts participated in informal leagues with friends and colleagues. However, the advent of online platforms ushered in a new era of daily fantasy sports. By the 2010s, major online platforms had penetrated the Californian market, providing fans with a convenient way to engage with their favorite sports and potentially win prizes.
The phenomenal growth of these platforms can be attributed to their user-friendly interfaces and the burgeoning online sports community. However, throughout this rise, California grappled with the question of legality. By 2015, pressure mounted for an official stance from the state's Attorney General, a request that echoed through subsequent years, largely unanswered—until now.
The Current Debate and Responses
The confusion around the rules for fantasy sports led many people to ask the California Attorney General for clear answers.
Back in 2023, Former State Senator Scott Wilk raised concerns that fantasy sports could be seen as illegal gambling under state law. Even though he pushed for an official opinion, nothing was decided while he was in office.
Now, Assemblyman Tom Lackey is carrying on the effort, insisting that any decision should consider what Californians want. At the same time, tribal groups are highlighting the need for strong regulations to protect consumers and ensure fair gaming.
What's Going To Happen to Fantasy Sports in California?
The anticipated legal opinion from the Attorney General signals a pivotal moment for the fantasy sports community in California.
The Coalition for Fantasy Sports told KCRA-TV that Bonta's opinion could be terrible news for the millions of sports fans in California who enjoy playing fantasy sports.
Depending on what happens, players and the companies that cater to them might have to deal with big changes.
As everyone waits for this important decision, people are still talking about what the future of fantasy sports in California will look like, trying to balance fans' excitement with the state's rules.
