Underdog Fantasy has filed a lawsuit against California Attorney General Rob Bonta in Sacramento County Superior Court, seeking to prevent the release of a forthcoming legal opinion on the status of daily fantasy sports (DFS) contests in the state.
The company argues that the Attorney General’s office lacks the authority to issue the opinion, which is expected to take a broad stance that most forms of paid fantasy sports violate California law.
The lawsuit, filed on Monday and reported by SBC Americas, highlights that approximately 10% of Underdog’s business comes from California users.
Underdog contends that the opinion could cause ‘imminent irreparable harm’ by driving away customers, discouraging banks and payment processors from working with DFS operators and causing loss of investment and goodwill.
The company is requesting a temporary restraining order to maintain the status quo while the legal challenge proceeds.
Underdog’s legal argument centers on the claim that the Attorney General’s office must decline opinion requests that require factual investigation or resolution of disputed facts.
Since the legality of DFS is ‘necessarily a factual question,’ Underdog asserts that the opinion is prohibited under California law.
The company points out that previous Attorneys General, including Kamala Harris and Xavier Becerra, chose not to issue such opinions, and that Bonta has not questioned DFS legality during his four years in office until now.
David Gringer, a lawyer representing Underdog from Wilmer Cutler Pickering Hale and Dorr LLP, stated in court filings that the Attorney General’s office intends to use the forthcoming opinion as a tool to pressure Underdog into leaving California.
Gringer referenced a similar opinion issued in Texas in 2016 by Attorney General Ken Paxton, which led to a company withdrawing its paid fantasy sports products from that state.
The lawsuit also challenges the scope of the Attorney General’s authority, arguing that opinions must relate to the duties of the official requesting them.
Underdog claims that neither condition is met in this case, making the opinion unlawful. The company’s filing includes references to guidelines from the Attorney General’s office itself, which specify that opinions should be limited to legal questions directly related to the requesting official’s duties.
The anticipated opinion from Bonta’s office has caused alarm across the fantasy sports industry. The Coalition for Fantasy Sports, which includes platforms such as PrizePicks, Betr, Splash Sports, Underdog Fantasy, and Dabble, has described the potential ruling as ‘devastating’ for millions of Californians who have participated in DFS for over a decade.
These platforms allow users to enter paid contests based on real-life athlete performances, an activity that has long occupied a legal gray area in California.
Attorney General Bonta’s office has not publicly commented on the matter. However, sources familiar with the opinion say it will provide detailed legal reasoning concluding that online fantasy contests constitute illegal gambling under California law.
The decision could fundamentally alter the future of DFS and other fantasy sports and esports activity in the state, threatening billions of dollars in business.
As the legal battle unfolds, Underdog remains confident in the legality of fantasy sports in California and is seeking judicial relief to prevent the opinion’s release.
The case highlights the ongoing tension between regulators and the rapidly growing fantasy sports industry, with significant implications for operators, players and the broader market.
The post Underdog Fantasy sues California Attorney General to block DFS legal opinion release appeared first on Esports Insider.