Goat

California AG Rob Bonta Promises DFS Crackdown

Following his July 3 ruling that daily fantasy sports are unlawful under state law, California Attorney General Rob Bonta has vowed to crack down on the industry.

California is the largest DFS market in the US, contributing an estimated $200 million a year, or 15% of total sales worldwide.

During this week's press conference, Bonta declared that he will "absolutely" take action against DFS sites.

“The next step is our enforcement, and laws are meant to be enforced,” he said.

As of Friday, Californians may still use DFS sites such as FanDuel, DraftKings, PrizePicks, and Underdog Fantasy.

 

According to Bonta, DFS is sports betting.

PrizePicks and Underdog Fantasy are members of the Coalition for Fantasy Sports, which declared in a statement on July 3 that Bonta "got it wrong."

“The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized as they specifically declined any similar action.”

According to Bonta, DFS competitions were "wagers" on the performance of third-party athletes, regardless of their talent component.  They were therefore covered by Penal Code section 337a, which makes it illegal to wager on competitions involving "skill, speed, or power of endurance."

The AG's view is merely advisory and has no legal force behind it.  However, it has weight and could affect how state officials perceive DFS.  It might also make legal cases brought by those looking to recover losses against DFS providers stronger.

But what caught some off guard was how quickly Governor Gavin Newsom dismissed Bonta's argument.

“The AG, in his independent capacity, issued this opinion — not the Governor’s Office,” Newsom spokesperson Izzy Gardon said in a statement. “While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”

 

Tribes Return to Bonta

The California Nations Indian Gaming Association (CNIGA) is one organization that does share the viewpoint.

"Untold millions if not billions have been illegally wagered over the past decade. Where is the enforcement? Where is the accountability?” CNIGA spokesman James May said in a statement. “It is now imperative that the state back up this legal opinion with strong enforcement and that lawbreakers be held to account.”

According to records, CNIGA members have contributed $334,700 to Bonta's campaign funds since he first entered politics.