California Daily Fantasy Sports

by Bob Duff

Updated: May 21, 2026

Is daily fantasy sports legal in California? That’s the question everyone is asking. The honest answer: it’s complicated.

DFS has operated in California for over a decade without regulation. There has never been a state law explicitly legalizing it. California has not passed a DFS-specific statute that expressly legalizes or bans fantasy sports by name, although the AG now argues existing sports-wagering law applies. Platforms like DraftKings and FanDuel have served California players since the early 2010s. California did not create a licensing framework for DFS operators, and the platforms continued operating without direct enforcement action for years.

In July 2025, Underdog shifted California users to its Champions peer-to-peer format, while PrizePicks moved users to its Arena peer-to-peer contests following the AG opinion.

And yet? The apps are still running. DraftKings and FanDuel haven’t changed a thing. PrizePicks and Underdog switched to peer-to-peer formats. Nobody has been shut down. This page explains where things stand right now, what each platform offers, and what California players need to know before entering a contest. DFS platforms remain available in California, although the AG now argues the contests violate existing gambling law and the issue remains unresolved.

For a broader look at all forms of online gambling in the state, visit our California online gambling page. You can also check our main California hub for the full picture.

The current California DFS legal status

Here’s what happened. On July 3, 2025, AG Bonta released an official legal opinion. The 33-page document concluded that daily fantasy sports contests violate Penal Code Section 337a. That’s the section that prohibits sports betting in California. Bonta said DFS qualifies as sports wagering because players win or lose money based on the outcomes of real sporting events.

The opinion covers every format. Not just the against-the-house pick’em games that look like player props. Draft-style contests, too. Even peer-to-peer formats. Bonta drew no meaningful distinction between them. He said all of them involve wagering on sports, and all of them are illegal.

But here’s the critical detail. An AG opinion is advisory. It does not carry the force of law. A Sacramento Superior Court judge said exactly that when denying Underdog’s attempt to block the opinion. The judge noted that AG opinions are “advisory only” and don’t change existing law. Governor Newsom’s office also pushed back. A spokesman said the opinion came from Bonta independently, not from the Governor.

What this means for players right now:

• DraftKings and FanDuel continue to operate DFS contests in California without changes
• PrizePicks switched from its pick’em product to its peer-to-peer Arena format in California.
• Underdog switched from its pick’em to its peer-to-peer Champions format in California.
• Four class action lawsuits are pending against all four major operators.
• No operator has been forced to exit California. No enforcement actions have been taken.

The situation is fluid. Bonta said he expects his opinion to be “followed and complied with.” But so far, the platforms aren’t leaving. And the courts haven’t made them. Players should understand they’re operating in a legal gray area that is actively being challenged.

For the official state position, see the California DOJ press release on the DFS opinion.

Traditional DFS vs pick’em vs pick 6 vs peer-to-peer contests

Not all DFS products work the same way. This matters because the legal scrutiny differs by format. Here’s how they break down.

The key distinction most players care about is pick’em vs peer-to-peer. Against-the-house pick’em games look a lot like placing a parlay at a sportsbook. You pick more or less based on player stats. The platform sets the lines and pays out. That’s why regulators in multiple states have challenged them.

Peer-to-peer formats were designed to address that concern. In P2P contests, your entries are matched against other players. The platform takes a fee but doesn’t set the odds or act as the house. PrizePicks switched to Arena and Underdog switched to Champions in California for exactly this reason. They thought P2P would be more defensible legally. Bonta’s opinion disagrees. He says all formats are illegal. But the platforms are betting the courts will see it differently.

Are DraftKings, FanDuel, PrizePicks, and Underdog available in California?

Yes. All four major DFS operators currently accept California players. But what they offer varies. Here’s the breakdown as of May 2026:

DraftKings issued a statement saying it “respectfully disagrees” with the AG’s interpretation. The company says peer-to-peer fantasy contests are legal. They’ve operated in California for over 13 years without challenge. FanDuel said it is “reviewing the opinion” and that customers can continue playing normally.

PrizePicks and Underdog took a different approach. Both pulled their against-the-house pick’em products. PrizePicks switched to Arena. Underdog switched to Champions. Both are peer-to-peer formats. This mirrors what both companies faced in Florida and other states: regulatory pushback. They’re betting that P2P is legally distinct from sports betting. Whether California courts agree is still an open question.

California is one of the largest DFS markets in the U.S., which is why operators are reluctant to leave voluntarily. Losing this market would be devastating for smaller operators. That’s why none of them are leaving voluntarily.

For a brand-by-brand breakdown across all gambling products, visit our California sportsbook legality by brand page.

How DFS is different from sports betting in California

This is where the confusion lives. And honestly, the confusion is understandable. When you open PrizePicks and pick “more” on a player’s strikeout total, it feels exactly like placing a player prop at a sportsbook. The experience is nearly identical. That’s the whole reason regulators are pushing back.

Historically, DFS has argued it’s different because it involves skill. You’re selecting players based on research, not just picking sides. The federal Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 carved out fantasy sports from its definition of gambling. That exemption has been the legal backbone of the industry for nearly 20 years.

But California doesn’t have its own DFS exemption. The state never passed legislation to regulate or legalize fantasy sports. So when Bonta looked at state law, he concluded that DFS falls under the same penal code section that prohibits sports betting. The federal carveout doesn’t override California’s state gambling statutes.

Sports betting is also illegal in California. No sportsbooks operate legally in the state. Propositions 26 and 27 both failed in 2022 by wide margins. So, both DFS and sports betting fall into the same legal bucket from the AG’s perspective. The difference is that DFS platforms have been operating openly while sportsbooks have not.

For more on California’s sports betting landscape, check our California sports betting legal page.

What California players should check before joining a fantasy app

If you’re going to play DFS in California, go in with your eyes open. Here are things you should look at before depositing money into any fantasy app.

Contest type matters. Know whether you’re entering a peer-to-peer contest or playing against the house. P2P formats are what PrizePicks and Underdog now offer in California. DraftKings and FanDuel still offer traditional formats. Understand the difference before you enter.

Check the fee structure. Every platform takes a cut. Entry fees fund the prize pool. The platform skims a percentage. Know what you’re playing before you play. Some contests have higher rakes than others.

Understand the payout structure. Some contests pay top-heavy. Others spread prizes more evenly. Read the rules of each contest. Don’t assume every format pays the same way.

Age and identity verification. Most DFS platforms require you to be 18 or older. Some require 21. You’ll need to verify your identity with a government ID and pass KYC checks before you can withdraw.

Know the legal risk. The AG says these platforms are illegal. Class action lawsuits are pending. No direct enforcement action has been reported yet. But the situation could change. Don’t deposit more than you’re comfortable losing if the legal landscape shifts.

California DFS alternatives

If the DFS legal uncertainty makes you uncomfortable, California has a few other options for sports fans looking to play for real money or just engage with their favorite games.

Horse racing wagering. This is the clearest legal option. TVG and TwinSpires are both licensed to offer online horse race betting in California. You can bet from your phone or computer. It’s fully regulated by the California Horse Racing Board.

Prediction markets. Platforms like Kalshi and Polymarket have gained popularity. They allow users to bet on real-world events, including some sports outcomes. Their legal status in California is also being challenged. Weitz & Luxenberg has filed suits against Kalshi, Robinhood, and Polymarket for allegedly operating as illegal gambling in the state.

Free-to-play fantasy. Platforms like ESPN, Yahoo, and Sleeper offer season-long fantasy leagues where you can play for free. Some offer prizes funded by sponsors, not entry fees. Free-to-play fantasy contests without player-funded prize pools generally carry less gambling-law risk.

Offshore sportsbooks. Some California residents use offshore betting sites. These are not licensed by the state. We cover these options on our main California page. They carry their own risks.

For more alternatives, check our California how to bet guide, our prediction markets page, or our California horse betting page.