California Court Denies Underdog Fantasy’s Emergency Bid Ahead of AG Opinion

Sources indicate that the Attorney General will likely deem all paid fantasy contests, including pick’em and daily fantasy, as illegal gambling under state lawImage Source: Shutterstock.com

A Californiacourt has denied Underdog Fantasy’semergency bid request for a temporary restraining order to stop the imminent release of an opinion by the state’s Attorney General that could deem fantasy sports contests illegal under state law.

Court Dismisses Underdog Fantasy’s Lawsuit

According to the court’s decisions, the petitioner had plenty of opportunity to raise this challenge at any point after the Attorney Generalaccepted Senator Wilk’srequest in October 2023. Underdog Fantasy’s delay in filing this action does not justify granting ex parte relief. Additionally, the judge determined that an opinion from the Attorney General would not alter California law, explaining that opinions issued by the California Attorney General are purely advisory and do not have the force of law.

As we previously reported, sources indicate that the Attorney General will likely deem all paid fantasy contests, including pick’em and daily fantasy, as illegal gambling under state law. This interpretation would be consistent with the stance of an increasing number of tribal sngakeholders, regulators, and lawmakers who believe paid fantasy sports should be prohibited.

Underdog Hits Another Setback

Earlier this week, Underdog filed a lawsuit in an effort to preempt the Attorney General’s opinion, claiming its games are based on skill and therefore legal under California law. However, the court’s denial of the company’s emergency motion paves the way for a broad legal ruling that could potentially force daily fantasy sports operators to cease operations in the state.

This marks another legal setback for the fantasy operator’s works. Again this week, two separate class action lawsuits were filed in the Northern District of California against Underdog and industry rival FanDuel, targeting their fantasy sports offerings.

In the case against Underdog, plaintiff O’Sean Headalleges the company has operated illegal gambling contests in California for years, specifically through its popular “Pick’em” and “Drafts” games. He seeks to recover entry fees on behalf of a proposed statewide class.

Meanwhile, the lawsuit against FanDuel, brought by Martin Beltran, represented by the same legal team as in the Underdog case, makes nearly identical claims, accusing the company of violating state law and misrepresenting its fantasy contests as legal.