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Daily fantasy sports are illegal in California, Attorney General rules

The article titled "Is Daily Fantasy Sports Illegal in California?" published on Yahoo News delves into the complex legal landscape surrounding daily fantasy sports (DFS) in California. The piece, authored by a legal expert, provides a comprehensive analysis of the current state of DFS legality, the ongoing debates, and the potential future implications for both players and operators in the state.

The article begins by explaining that daily fantasy sports are a form of fantasy sports where participants draft virtual teams of real professional athletes and compete against each other based on the statistical performance of those athletes in actual games. Unlike traditional season-long fantasy sports, DFS contests are typically short-term, often lasting just one day or one week. This format has led to significant controversy regarding its legality, particularly in states like California, where gambling laws are stringent.

The author points out that the primary legal issue surrounding DFS in California revolves around whether it constitutes gambling under state law. California Penal Code Section 337a prohibits various forms of gambling, including betting on the outcome of sports events. However, the law also includes exceptions for games of skill, which has been the basis for DFS operators to argue that their contests are legal in the state.

The article then delves into the history of DFS in California, noting that the industry has been operating in a legal gray area for years. In 2016, the California Department of Justice issued an opinion stating that DFS constitutes illegal gambling under state law. This opinion was based on the argument that DFS contests involve elements of chance and are therefore not purely games of skill. Despite this opinion, DFS operators continued to offer their services in California, citing the lack of enforcement and the ongoing legal battles in other states.

The author goes on to discuss the various legal challenges faced by DFS operators in California. In 2018, a class-action lawsuit was filed against DraftKings and FanDuel, two of the largest DFS operators, alleging that they were operating illegal gambling businesses in the state. The lawsuit claimed that the companies were violating California's gambling laws by offering contests that were predominantly based on chance rather than skill. The case was eventually settled out of court, with the operators agreeing to pay a settlement amount to the plaintiffs without admitting any wrongdoing.

The article also examines the efforts by DFS operators to seek legislative clarity in California. In recent years, several bills have been introduced in the California State Legislature aimed at regulating and legalizing DFS. These bills have sought to create a framework for DFS operators to obtain licenses and operate legally in the state. However, none of these bills have been successful, leaving the industry in a state of uncertainty.

The author then discusses the potential impact of a recent U.S. Supreme Court decision on the legality of DFS in California. In 2018, the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), a federal law that had prohibited states from legalizing sports betting. This decision opened the door for states to legalize and regulate sports betting, which has led to a wave of new legislation across the country. The article suggests that this decision could have implications for DFS in California, as it may encourage the state to revisit its stance on the legality of these contests.

The piece also explores the arguments made by both supporters and opponents of DFS in California. Proponents argue that DFS is a game of skill that should be treated differently from traditional gambling. They point to studies that have shown that skilled players can consistently outperform others in DFS contests. They also argue that DFS provides a form of entertainment and can generate significant tax revenue for the state if properly regulated.

On the other hand, opponents of DFS in California argue that the contests are predominantly based on chance and should be considered illegal gambling. They point to the high volume of contests and the use of algorithms and data analysis by operators to create contests that are difficult for the average player to win. They also express concerns about the potential for addiction and the impact of DFS on vulnerable populations.

The article concludes by discussing the potential future of DFS in California. The author suggests that the state may eventually legalize and regulate DFS, given the growing acceptance of sports betting and the potential economic benefits. However, the author also notes that any such legislation would likely face significant opposition from anti-gambling groups and would need to carefully balance the interests of all stakeholders.

Overall, the article provides a thorough and balanced analysis of the complex legal issues surrounding daily fantasy sports in California. It highlights the ongoing debates, the potential impact of recent legal developments, and the challenges faced by both operators and players in navigating this uncertain landscape. As the legal status of DFS continues to evolve, the article serves as a valuable resource for anyone seeking to understand the current state of play and the potential future of this popular form of entertainment in California.

Read the Full KTTV Article at:
[ https://www.yahoo.com/news/daily-fantasy-sports-illegal-california-003308278.html ]