California AG: Daily fantasy constitutes illegal sports betting

The California attorney general declared daily fantasy sports illegal in a long-awaited opinion released Thursday afternoon, though the decision was met with push back from Gov. Gavin Newsom as well as the sports betting industry.

Sportsbooks have long argued that daily fantasy sports -- which involve selecting a roster of athletes in either a pick'em style or a draft -- are games of skill rather than games of chance, and therefore should not be considered gambling.

California AG Rob Bonta begged to differ, ruling Thursday that they constitute gambling "because they involve betting on sporting events." Sports gambling is already prohibited in California, the most populous state in the nation.

Daily fantasy sportsbooks have raked in billions of dollars while functioning legally in California for more than 10 years, and at least some do not plan to cease operation in the state for the time being.

Representatives from DraftKings and Underdog Fantasy told ESPN that it will continue to offer fantasy contests in California for the time being. A FanDuel spokesperson also told ESPN that the company "look(s) forward to meeting with the attorney general's office to talk through our next steps."

A spokesperson for Newsom told Sacramento's KCRA 3 that the governor disagrees with Bonta's opinion.

"The Attorney General, in his independent capacity, issued this opinion -- not the Governor's office," the spokesperson said. "While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders."

--Field Level Media