No — according to the California Attorney General — but the platform continues to operate anyway. Underdog Fantasy offers paid fantasy contests and player-prop style games that mimic sports betting. These games are popular in states where online sportsbooks are illegal, including California. For several years, DFS companies like Underdog benefited from the ambiguity of California’s gambling laws because the state had never officially declared whether paid fantasy contests counted as gambling. That changed in 2025. In a major legal shift, California’s Attorney General issued a formal opinion declaring that daily fantasy sports contests violate existing gambling laws. Despite this, Underdog still serves California users and is actively adjusting its contests to stay online. This unusual moment means the law says one thing, but the marketplace still looks very different.
Why Underdog Was Operating Without a Ban
California does not have a specific statute authorizing or prohibiting daily fantasy sports. Companies have argued that because fantasy contests require skill, they are not gambling. Underdog and similar platforms build contests around player performance, not team outcomes, and market themselves as skill-based entertainment where users compete against others, not the house. For years, this argument worked. Without an explicit law, DFS companies operated under a “legal by omission” strategy. As long as the state did not prosecute or regulate them, they continued to expand. Many players assumed this meant DFS platforms were legal, not simply tolerated.
The 2025 Attorney General Opinion Changed Everything
In July 2025, Attorney General Rob Bonta issued a formal legal opinion stating that paid daily fantasy sports contests are illegal gambling under California Penal Code §§ 330–337. The opinion concluded that these contests involve a wager — money risked on the uncertain performance of athletes — and therefore violate state gambling law whether they are played “against the house” or “against other players.” Crucially, the opinion rejected the industry argument that skill eliminates gambling. The Attorney General stated that even if skill is involved, paid outcomes based on uncertain events still fall under illegal wagering. The opinion further promised enforcement action against illegal operators.
How Underdog Responded
Underdog did not leave California. Instead, it began restructuring contest formats to appear more peer-to-peer, arguing that users compete against each other rather than against the company. This strategy mirrors how companies survive in uncertain regulatory environments: adjust the mechanics and hope regulators delay action. Whether these changes actually eliminate legal risk under California law is unknown. The Attorney General did not carve out exceptions for peer-to-peer contests — he declared the entire category illegal. That means Underdog is operating not because California legalized it, but because California has not yet enforced the opinion.
What It Means for California Users
For players, the experience is normal: the app works, picks can be made, and payouts continue. But the legal environment around that activity has changed dramatically. The Attorney General’s opinion does not automatically fine users, but it signals that:
- Operators may be sued or shut down.
- Future enforcement could extend to users.
- Legal protection for players does not currently exist.
This places users in a legally uncertain position. They are not being targeted today, but the state has declared that the entire activity is unlawful.
Conclusion in Light of the AG Opinion
In late 2025, the most important legal takeaway for a California user is clear:
The official legal answer is No — Underdog Fantasy is considered illegal under current California law. The state’s chief law enforcement officer has formally declared daily fantasy contests to be unlawful gambling and has promised enforcement against illegal operators. That means Underdog is not legal simply because it is still operating.
The practical reality is uncertain — Underdog continues to function in California, banking on the fact that the Attorney General’s opinion is not immediately binding without court action or legislative clarification. Users are therefore participating in a legally gray marketplace with elevated enforcement risk, not a regulated one.
So while you can technically play Underdog Fantasy in California today, the state’s official position is that you shouldn’t be able to — and enforcement is no longer a hypothetical risk but an acknowledged priority.
