A California court has rejected fantasy and sports betting operator Underdog Sports’ attempts to prevent Attorney General Rob Bonta from issuing his reportedly forthcoming opinion on the legality of daily fantasy sports (DFS).
With Bonta expected to cast a negative verdict on DFS games in the state any day now, Underdog filed suit in the Superior Court of California, County of Sacramento on July 1 to request that a judge intervene and prevent Bonta’s office from releasing the opinion. SBC Americas understands Bonta’s opinion will take a broad stance that most forms of paid fantasy sports should be deemed illegal.
On Wednesday, Judge Jennifer Rockwell denied Underdog’s ex parte motion for a temporary restraining order (TRO) against Bonta’s office. A cornerstone of the reasoning was that Underdog had “ample opportunity” in the more than 18 months since Sen. Scott Wilk asked Bonta to investigate the legality of DFS gaming to challenge the AG’s right to issue an opinion.
“The fact that Petitioners delayed filing this action does not constitute a basis for ex parte relief,” reads the court decision, which was viewed by SBC Americas on Wednesday. The court also emphasized that, should Bonta issue an opinion, it would not in itself change any laws. As such, Underdog has not established that it will suffer any harm as a result of an opinion being issued.
“The court stated that the Attorney General’s forthcoming opinion on fantasy sports ‘does not effect any change in law’ and does ‘not carry the weight of law.’ As a result, the court explained that the protective relief we sought was not necessary,” an Underdog spokesperson told SBC Americas on Wednesday.
“We thank the court for that clarity and look forward to continiing to offer our fantasy contests in California.”
Underdog questions Bonta’s authority, alleges potential operational damage
In its TRO motion filing, Underdog asked the court to immediately stop Bonta from publishing his opinion while the company’s lawsuit challenging whether he is even legally allowed to present such an opinion went through due process.
“Any potential opinion is flawed because it has to rely on factual determinations the opinion process cannot and should not resolve, according to California law,” an Underdog spokesperson told SBC Americas on Tuesday about its TRO request. “The last two Attorneys General, Kamala Harris and Xavier Beccera, did not issue opinions, and Attorney General Bonta has been in office for more than four years without questioning fantasy sports games.
“We are optimistic the law will be followed and are confident in the legality of fantasy sports in California. If a negative opinion is issued, fantasy sports will prevail on the merits, no different than in New York and Illinois where courts rejected the similarly wrong opinions of those states’ attorneys general.”
Underdog’s lawsuit in California can still move forward, but the court has quickly decided that there is no basis to prevent Bonta from issuing his opinion on DFS, at least not as pertains to Underdog’s preliminary injunction motion. Prior to Underdog’s filing on Tuesday, Bonta’s opinion on fantasy games was widely expected by Thursday, July 3.
