California Judge Rejects Underdog’s Attempt to Block DFS Legal Opinion

Judges wooden gavel

The Sacramento Superior Court has denied Underdog Fantasy’s emergency request to stop California Attorney General Rob Bonta from releasing his opinion on daily fantasy sports (DFS).

Underdog’s Delayed Action Leads to Court Rejection

Since Bonta is expected soon to issue a negative opinion on daily fantasy sports (DFS) in California, Underdog filed a lawsuit in Sacramento County Superior Court on July 1. They asked the judge to block Bonta’s office from releasing the opinion. His opinion is likely to argue that most paid fantasy sports are illegal.

On July 2, Judge Jennifer Rockwell denied Underdog’s request for an emergency temporary restraining order (TRO), saying the company had plenty of time to challenge the opinion but waited more than 18 months to take action.

Judge Rockwell also explained that Bonta’s opinion would be advisory only and wouldn’t have the force of law. She wrote that the Attorney General’s upcoming opinion on fantasy sports wouldn’t change laws or create immediate legal consequences.

Underdog’s Legal Challenge and Its Impact on Operators

In its request for a TRO, Underdog also questioned whether Bonta’s office had the authority to issue the opinion. The company argued that the investigation into daily fantasy sports, which began after a 2023 request from Senator Scott Wilk, was improper and that the Attorney General didn’t have the legal right to decide whether DFS is legal.

“We are optimistic the law will be followed and are confident in the legality of fantasy sports in California.”

-An Underdog spokesperson

The company also argued that Bonta’s opinion on DFS could harm their business and exceed the legal limits of the Attorney General’s authority.

Even though the court ruled against them, Underdog says it will continue to offer DFS contests in California while its lawsuit against Bonta’s authority is pending. The company’s position highlights growing concerns in the DFS industry about the future of its business in California, the biggest DFS market in the country.

Legal Implications for California’s DFS Industry

With a possible ban on DFS in California, companies like Underdog have a lot at risk. California has a huge sports fan base, and a ban could result in significant revenue losses. Underdog has stated that 10% of its revenue comes from California players, highlighting the state’s significant importance to its business.

The court’s decision to let Bonta release his opinion could mean that daily fantasy sports may soon be banned in California. However, companies like Underdog are changing how they operate, showing they’re not giving up easily.

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