Court Rejects Attempt to Halt AG’s Pending Opinion
A California court has denied Underdog Fantasy’s emergency motion to block the anticipated release of a legal opinion from the state’s Attorney General that could redefine paid fantasy contests as illegal gambling under state law.
The ruling emphasized that Underdog had ample opportunity to raise objections after the Attorney General agreed to evaluate Senator Wilk’s request in October 2023. The court concluded that the company’s delay in taking legal action did not justify an emergency intervention.
Additionally, the judge clarified that opinions issued by the Attorney General are non-binding interpretations and do not change existing law.
AG Expected to Classify Fantasy Sports as Gambling
Insiders close to the process suggest that the Attorney General is poised to categorize all paid fantasy sports contests, including pick’em and daily fantasy formats, as illegal gambling under California’s legal framework. This stance aligns with growing pressure from tribal gaming stakeholders and state regulators pushing to curb fantasy sports operations.
Underdog Faces Mounting Legal Hurdles
Earlier in the week, Underdog Fantasy initiated a lawsuit in an effort to prevent the Attorney General’s opinion from being issued. The company maintains its games are skill-based and therefore lawful in California. However, with the emergency bid denied, fantasy operators may face increased legal uncertainty if the AG’s opinion is made public.
The failed court motion is just the latest blow to Underdog. Two separate class action lawsuits were also filed this week in the U.S. District Court for the Northern District of California — one against Underdog and another against FanDuel.
Class Actions Challenge Legality of Fantasy Contests
In the case against Underdog, plaintiff O’Sean Head alleges the company has facilitated illegal gambling for years through its “Pick’em” and “Drafts” formats. The lawsuit seeks to recover entry fees for a proposed class of California residents.
Meanwhile, Martin Beltran, the plaintiff in the lawsuit against FanDuel, makes similar claims. Represented by the same legal counsel, he accuses the operator of unlawfully offering fantasy contests under the false pretense of legality.
What’s at Stake for Fantasy Sports in California
With court resistance mounting and regulatory scrutiny intensifying, the future of daily fantasy sports in California remains uncertain. If the Attorney General’s advisory opinion takes a hard stance, it could force major operators to reconsider their presence in one of the country’s most influential markets.
