Troubles for Daily Fantasy Sports in California Amid Legal Challenges
Challenges Facing Daily Fantasy Sports in California
Daily fantasy sports (DFS) businesses in California are currently under significant pressure as legal challenges and regulatory opinions threaten their operation. A recent advisory from California’s Attorney General, Rob Bonta, suggested that DFS activities might need to be prohibited within the state. This development has added to increasing scrutiny of DFS providers amidst accusations of unlawful gambling practices.
Lawsuits Target Major Daily Fantasy Sports Operators
Just prior to the Attorney General’s opinion, several major DFS companies were accused of masking illegal betting as fantasy sports. Multiple law firms specializing in consumer protection joined efforts to file legal actions against key industry players, heightening challenges for the fantasy sports sector in California.
The Almeida Law Group took the lead in these lawsuits, directing claims at prominent DFS services such as FanDuel, DraftKings, Underdog Fantasy, and PrizePicks. They argued that the products offered by these companies should be classified as unauthorized online sports wagering rather than legitimate fantasy sports.
These class action suits contend that these cases fall under California’s Unfair Competition Law and the Consumer Legal Remedies Act. As a result, the lawsuits seek financial compensation and court orders to stop these operations on behalf of consumers who have incurred losses.
Legal Experts Advocate Against DFS Operations
Legal authorities emphasize that these lawsuits aim to uphold fairness and transparency. Margot Cutter, a partner at Cutter Law, explained that the goal is to demonstrate to the public that daily fantasy sports function as gambling, which is illegal under California law.
Cutter highlighted that permitting DFS to continue would undermine state gambling laws and threaten the legal system’s integrity. Likewise, attorneys Peter Silva and James Bilsborrow, representing their respective law firms, expressed agreement that DFS must be halted due to their deceptive practices.
Following the announcement of these class actions, the Attorney General’s stance aligned with the lawsuits by recommending the ban of DFS, creating significant uncertainty throughout the fantasy sports community.
Wesley Griffith, a lead attorney involved in these legal actions, welcomed the Attorney General’s viewpoint, stating it confirms the fundamental basis of their cases—that daily fantasy sports constitute illegal gambling.
Underdog’s Attempt to Prevent Legal Action Fails
Amid these events, Underdog Fantasy sought to prevent the Attorney General’s opinion from influencing legislation by initiating a preemptive legal challenge. The company argued that the Attorney General’s position threatened a thriving entertainment industry enjoyed by many participants.
However, this legal maneuver was swiftly rejected by the courts, leaving the DFS operator vulnerable to ongoing legal scrutiny in California.