California’s legal ambush on fantasy sports

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OPINION – California has long been a hub for innovation—pioneering everything from personal computers to artificial intelligence. We lead, not follow. But some officials in Sacramento seem more interested in stifling innovation than fostering it.

Millions have enjoyed fantasy sports in California for decades. For many, it’s as much a part of sports fandom as watching the game itself. New fantasy sports formats have brought fresh energy to this well-established pastime. These skill-based games have been a fixture in California for nearly 20 years and provide a fun, engaging, and lawful experience that appeals to casual fans who like to compete against one another while watching their favorite players on the field. In my time as Chief of the California Bureau of Gambling Control and as a Senior Advisor for Governor Brown on all aspects of California gaming, we never had a single consumer complaint about these forms of entertainment.

Even though these contests have been openly and freely played for nearly 20 years, the Attorney General’s office has now chosen to dismantle them—reaching for a novel legal interpretation to declare all paid fantasy sports contests illegal overnight. Without a single act of legislation or meaningful public engagement, the AG has twisted the law to determine that all paid fantasy sports contests are illegal in California. This interpretation is not only misguided but also dangerous.

More importantly, it jeopardizes consumer freedom. We’re not talking about some niche activity that is hiding in the shadows. Millions of Californians of all stripes enjoy fantasy sports. A recent poll found that 75% of California voters support continuing to allow fantasy sports contests in the state. That’s not just a statistical majority—it’s a demand from constituents to continue playing games they love.

During my tenure as Chief of the California Bureau of Gambling Control, I was responsible for ensuring compliance with the state’s gaming laws. I know what illegal gaming looks like — and fantasy sports don’t come close. Courts and regulators nationwide agree with me, having deemed fantasy sports to be games of skill, not chance.  The statute that the Attorney General relies upon was enacted over 100 years ago to stop “pool selling” or “bookmaking” in horse racing. Performing legal gymnastics to contort a horse racing statute into a pretext for banning all fantasy sports is not the job of the Attorney General.

California sports teams understand the opportunity fantasy sports create. Nearly every major sports team in California promotes fantasy sports in their stadiums and on their television and radio broadcasts. These organizations—deeply embedded in our communities—recognize that fantasy sports are a form of entertainment that enrich the fan experience and build stronger connections with their audiences.

In the absence of clear legislative guidance, why is the Attorney General rushing to undermine a legal activity that has been operating in California without incident for nearly 20 years? If California truly aims to remain a beacon of prosperous transformation, it should work with industry on commonsense standards to ensure consumers have safe and fair experiences. Relying on untested interpretations of century-old laws to justify a ban on fantasy sports is a recipe for stalling innovation and undermining trust. Let’s have an open, transparent process about regulating, licensing, and taxing these activities, and not some backroom political dealmaking that leaves us all questioning the motives and ambitions of the politicians making these decisions.

I respectfully urge Attorney General Bonta to reconsider this course of action. Californians deserve a government that listens to its people, champions innovation, and protects their right to enjoy the games they love. The future of fantasy sports—and the broader tech culture that defines our state—depends on it.

Jacob Appelsmith is the former Chief of the California Bureau of Gambling Control.