In the September issue of IMGL Magazine, Joshua Kirschner reports on the evolving legal and regulatory landscape for Daily Fantasy Sports (DFS) and sweepstakes gaming in California, highlighting recent developments that could significantly impact real-money gaming operators in the state. 

The core of the controversy centers on Assembly Bill 831 (AB 831), which proposes categorizing online sweepstakes as illegal gambling. This bill would penalize not only operators but also support services, such as payment processors and media affiliates.

At the same time, Attorney General Rob Bonta’s Opinion No. 23-1001 asserts that paid DFS contests are illegal under state law, dismissing arguments that they qualify as skill-based games.

“Passage of AB 831 would not just criminalize those who operate online sweepstakes games, but virtually everyone who facilitates such operation as well,” said Kirschner.

Despite ongoing litigation and legal uncertainty, major DFS platforms continue to operate in the state. The combined force of AB 831 and the AG’s opinion could dramatically reshape the future of real-money gaming in California.

You may read the full article here.