On July 15, 2025, California’s Attorney General Rob Bonta introduced AB 831. The bill aims to ban daily fantasy sports (DFS) and sweepstakes. It labels DFS as illegal betting under state law, similar to sports wagering.
This follows a 2023 review requested by former Senator Scott Wilk. Voters rejected online sports betting in 2022, prompting this move. The bill’s broad rules might ban common marketing tools like sweepstakes and giveaways. However, there’s a coalition already established looking to combat a widespread ban.
The Social and Promotional Games Association (SPGA) leads a group of seven organizations against AB 831. The coalition believes the bill could hurt legitimate businesses that aren’t violating state regulation and policy as-is. DFS and sweepstakes rely on skill, not betting, they argue. A large part of the contention between the parties is how sweeps companies in this space use sweepstakes to attract customers.
The other six organizations within the coalition include:
The SPGA says the bill’s vague wording could harm legal businesses, while the ACLU argues it may limit free speech and fairness.
“The SPGA is proud to stand alongside the ACLU, the Association of National Advertisers, and other partners in voicing concerns about AB 831,” said an SPGA spokesperson. “This diverse coalition, including civil liberties advocates, leading businesses, and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.”
Four class-action lawsuits by consumer protection law firms were filed after Bonta’s July 3, 2025 opinion. They target DFS operators like FanDuel, DraftKings, PrizePicks, and Underdog under the claim that these operators ran illegal betting disguised as fantasy sports.
The suits seek money and court orders to stop the practices, with Attorney Margot Cutter stating that consumers need clear rules. However, the coalition sees these lawsuits as a reason to regulate DFS and preserve California’s vibrant DFS market, not ban it.
While last week’s Senate hearing on AB 831 was notable, the AG’s statement was not a legal edict. There’s time for the coalition to persuade lawmakers to reconsider the bill as an opportunity to engage with stakeholders to develop fair regulations.
After all, California is the biggest DFS market in the U.S.. Some estimates have DFS sites making up 15% of all gaming revenue in California, while operators like Underdog get 10% of their revenue from the state.
A ban could hurt these companies and their partners, like payment providers and sports teams such as the LA Dodgers. The SPGA warns that a ban might push players to unregulated offshore sites, which would cut state oversight and tax income.
There’s a large amount of public support in place for California to deal with the legal challenges that must be resolved in order to give players more options. With states like Virginia and Arizona regulating DFS successfully, there are potential models for California to follow.
