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On July 3, 2025 California Attorney General Rob Bonta issued an official opinion deeming fantasy sports platforms illegal in the state, regardless of where the operators and associated technology are located. The decision risks billions in revenue by forcing all operators to withdraw from California, the largest market online gambling market in the United States.
Since becoming a state, California has regulated attempts to win money based on the outcome of sporting events. “Daily fantasy sports” is a more modern variation on that activity where participants try to win money based on the performance of select professional or collegiate athletes in real-world sports games. On July 3, 2025, California Attorney General Rob Bonta issued an official opinion concluding that daily fantasy sports are prohibited by California law, even if the game operators or associated technology are located outside the state, because these games involve wagering on sports. Attorney General Bonta declined to opine whether daily fantasy sports are a lottery and prohibited under California law on that basis.
The Attorney General's opinion is in response to a 2022 letter from State Senator Scott Wilk, who sought clarification from the California Department of Justice on the legality of daily fantasy sports platforms. The response is the most recent step in the state's efforts to curb online gambling. Conversations about the permissibility of online gambling began in 2015, when assembly members sought similar clarification from then-Attorney General, Kamala Harris. In 2022, voters overwhelmingly rejected a ballot measure to legalize sports betting.
State leaders have also faced pressure from the California Nations of Indian Gaming Association and Tribal Alliance of Sovereign Indian Nationals, who argue the state constitution affords tribal nations exclusivity in the gambling sector. The Association backs a proposed bill, currently making its way through the legislature, which codifies a prohibition on online gambling with sweepstakes prizes.
California is the latest of a growing number of states that are working to curb online gambling. Montana was the first to act by amending its gambling laws to prohibit all online casinos. The law will take effect this October. Last month, Connecticut joined Montana when Governor Lamont signed SB 1235, which outlaws all sweepstakes-based gaming operations. Two weeks ago, the New York Assembly passed a similar measure, but Governor Hochul has not yet acted on the bill. The conversation around online gambling continues around the country in states like New Jersey, Maryland, Mississippi, and Louisiana.
The Hogan Lovells State Attorneys General and Sports, Media and Entertainment practice groups will continue to monitor the continued efforts of states to restrict the online gambling sector.
Authored by Jason Downs, Lauren Cooper, and Victoria Glover.