Underdog Sports sues California AG and Department of Justice
Attorney General Rob Bonta plans to issue an opinion, saying DFS games are prohibited per state law.
Key Points
- Underdog says declaring DFS illegal gambling will cause the company and the industry harm
- The company is asking for a temporary restraining order that would prevent the attorney general from issuing his opinion
Underdog Sports has filed a lawsuit against California Attorney General Rob Bonta and the California Department of Justice. The suit aims to prevent Bonta from declaring daily fantasy sports (DFS) illegal under state law.
The company has filed its case in Sacramento Superior Court.
According to court documents, Underdog claims issuing an unfavorable opinion toward the legality of DFS gaming could have a negative financial impact on California’s gambling industry.
The company stated in its lawsuit, “If issued, the opinion will poison a thriving industry that serves millions of Californians. It will cast a legal cloud over companies that organize digital fantasy sports contests and deter the businesses who make these contests possible by processing payments, hosting the platforms that Californians use to participate in digital fantasy sports and providing critical financing.
“In short, it will cost jobs, squander investments and deprive Californians of an activity that millions enjoy.”
Furthermore, Underdog Sports affirmed that DFS meet the requirements to be considered legal gambling in California, and said issuing an opinion saying otherwise “would violate clear statutory constraints on the Attorney General’s authority to issue the opinion.”
As a result, Underdog has asked the court to intervene.
The company said in its court documents, “Underdog faces imminent irreparable harm if the Attorney General proceeds with issuance of the opinion. This court should expeditiously issue a temporary restraining order prohibiting the Attorney General from issuing an opinion that responds to the request or that otherwise addresses the legality of digital fantasy sports platforms under California law.”
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