California Court Rejects Underdog’s TRO Bid Against DFS Opinion
A Sacramento Superior Court judge rejected Underdog Fantasy’s bid for a Temporary Restraining Order (TRO) to block California Attorney General Rob Bonta from issuing an opinion on the legality of daily fantasy sports (DFS). The ruling clears the way for Bonta’s expected declaration that most DFS formats are illegal.
Court Dismisses Underdog’s Urgent Plea
Judge Jennifer Rockwell denied Underdog’s TRO request, citing two key reasons. First, she noted that Underdog had over 18 months since Senator Scott Wilk’s October 2023 request to challenge Bonta’s authority but waited until July 1, 2025, to file. “The delay doesn’t justify emergency relief,” Rockwell stated.
Second, she ruled that Underdog failed to prove “imminent irreparable harm” from Bonta’s opinion, which she emphasized is advisory and “does not carry the weight of law,” citing People v. Vallerga (1977). Underdog had argued the opinion would “decimate” its business, threatening over 10% of its revenue from California’s 500,000 players.
Underdog’s lawsuit claimed Bonta lacks authority to issue the opinion, as it requires factual analysis beyond a “pure legal question” and stems from a now-retired senator’s request. However, Rockwell found these arguments insufficient for a TRO, though the broader lawsuit may proceed.
DFS Legality Under Fire
The whole dispute began in October 2023 when Senator Wilk asked Bonta to review DFS legality, suggesting it resembles games of chance banned under California law.
Bonta’s opinion, expected by July 3, is widely anticipated to deem most DFS formats illegal, mirroring a 2016 Texas ruling that pushed operators out.
Underdog warned of “billions in commerce” at risk, citing potential customer loss and payment processor hesitancy. Meanwhile, the California Nations Indian Gaming Association supports Bonta, arguing DFS lacks consumer protections against fraud and underage gambling.
The Coalition for Fantasy Sports, including Underdog, PrizePicks, and Betr, noted that 75% of California voters back DFS, urging a voter-driven decision. Yet, Bonta’s office reportedly plans to use the opinion to pressure operators to exit, a tactic likened to Texas’s 2016 strategy.
PrizePicks has already shifted to peer-to-peer contests in California to sidestep upcoming troubles.
Industry Braces for Impact
Despite the TRO denial, Underdog remains optimistic, thanking the court for clarifying the opinion’s advisory nature. “We’ll keep offering contests in California,” a spokesperson said, citing victories in New York and Illinois, where courts overturned similar attorney general opinions.
However, gaming lawyer Daniel Wallach warned that defying Bonta’s opinion could be “self-sabotage” due to his enforcement powers. The opinion may trigger cease-and-desist orders or lawsuits. While not legally binding, California courts often defer to such opinions.
Recommended