Cali Judge Denies Underdog's Bid to Block AG's DFS Opinion
Underdog Fantasy's attempt to block California's Attorney General Rob Bonta from releasing a legal opinion on daily fantasy sports has been rejected by a Sacramento County Superior Court judge.
LISTEN TO THIS ARTICLE:On July 1, the DFS operator took legal action against Attorney General Rob Bonta and the California Department of Justice, arguing that the AG's opinion would irreparably harm a booming industry that benefits millions of Californians.
Although Bonta's opinion is pending, indications suggest he will likely rule that all DFS contests – including peer-to-peer, against the house, and daily draft – are illegal in California. Underdog asserts that if issued as planned, the Attorney General's opinion could lead to devastating consequences for its business, including customer loss, disruption of banking and payment services, and damage to investment and reputation.
In the lawsuit, Underdog claimed that it had been operating in California since 2020, with the state generating over 10% of its annual revenue. It asked the court for an immediate ex parte temporary restraining order to maintain the status quo in the state.
However, Judge Jennifer Rockwell denied Underdog's request, noting that the company failed to establish how it would suffer harm if the opinion is released. She continued that the AG's opinion wouldn't change the law, as it's advisory in nature and "does not carry the weight of law."
Rockwell also pointed out that the opinion had been in the works for 18 months, which should have been enough time for the company to challenge it. She concluded that Underdog's delay in filing the action undermined their request for urgent ex parte relief.
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Underdog to Continue DFS Operations
In the next few days, Bonta is expected to deliver his highly anticipated opinion on the legality of DFS offerings in the state. The viewpoint would be in response to a request made in 2023 by former State Senator Scott Wilk, who departed the legislature in 2024.
Ahead of the assessment, PrizePicks, a major competitor to Underdog in California, has transitioned its DFS offering to a peer-to-peer model. However, Underdog is unfazed as it plans to continue offering DFS contests in the state, despite the recent development.
A company spokesperson said, "The court stated that the Attorney General's forthcoming opinion on fantasy sports 'does not effect any change in the law' and does 'not carry the weight of law.' As a result, the court explained that the protective relief we sought was not necessary. We thank the court for that clarity and look forward to continuing to offer our fantasy contests in California."
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