ZwillGen law firm comments on state of DFS in California
California Attorney General Rob Bonta issued a statement on July 3 saying DFS contests fall under the state’s definition of gaming and are therefore illegal.
Key Points
- Marc Zwillinger, Founder and Managing Member of ZwillGen, provided comment on what the Attorney General’s opinion means for DFS operators
- For operators such as PrizePicks and Underdog, the California determination could fundamentally reshape business models
ZwillGen Founder and Managing Member Marc Zwillinger has provided his thoughts on the state of daily fantasy sports (DFS) in California following Attorney General Rob Bonta’s statement on July 3 which ruled DFS contests should be deemed illegal throughout the state.
“Where does this leave DFS operators? While the AG’s opinion raises real enforcement risks – particularly for pick ’em-style products – it also invites challenge. This is not settled law,” Zwillinger said.
“The opinion does not bind courts, and it leans heavily on a contested interpretation of what makes something a ‘contest’ versus a ‘bet.’ Providers who are willing to stand their ground may well prevail if this issue reaches California’s judiciary. The path forward won’t be easy – but it’s far from closed.”
Within Bonta’s statement, the Attorney General found DFS operations fall under the definition of gaming in California, as “such games constitute wagering on sports in violation of Penal Code section 337a.”
Good to know: Despite facing legal challenges throughout California, PrizePicks has formed partnerships with Major League Baseball franchises such as the Los Angeles Dodgers, San Francisco Giants and San Diego Padres
Sacramento County Superior Court Judge Jennifer Rockwell denied Underdog’s request to prohibit Bonta from releasing his legal opinion, believing the operator had “ample time” to raise a challenge to the proceedings.
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