California Attorney General Opinion 23-1001

BACKGROUND

California and other States have long regulated attempts to win money based on the outcome of sporting events. 1 This opinion concerns a modern variation on that activity, known as daily fantasy sports, in which participants try to win money based on the performance of selected professional or collegiate athletes in real-world sports games. To place daily fantasy sports in context, we will first describe traditional forms of sports wagering—which California law generally prohibits, but many other States now allow. 2 We will then describe the operation of daily fantasy games.

Traditional Sports Betting

In traditional sports wagering, participants pay for the chance to win money based on the performance of third-party athletes. Modern sportsbooks allow wagering on a variety of sports. In Nevada, for instance, bettors can wager on football, basketball, baseball, golf, tennis, and horse racing, among other professional and collegiate sports. 3

Once a sport is selected, wagering can focus on any game attribute. Bettors may attempt to predict which player or team will win, or by how many points. 4 Or they can place what is known as a “proposition” bet, where they predict…