California Attorney General Rob Bonta and Deputy Attorney General Karim Kentfield released a legal opinion officially making all daily fantasy sports (DFS) illegal in the state. They claim wagering on daily fantasy sports is no different than placing bets on the outcome of sporting events (except for horse racing), which is already against the law in California.

Bonta and Kentfield stated “pick ’em” and “draft style” daily fantasy sports should fall under California Penal Code section 337a, making them illegal in the state.

“California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located,” said the opinion. “Such games constitute wagering on sports in violation of Penal Code section 337a.”

This means that DFS companies like DraftKings and FanDuel, which have been operating in California, will now be considered to be breaking the law if they continue to do so. The daily fantasy sports companies have countered by claiming that what they offer isn’t betting since it involves skill and judgment, not just luck.

“That is not a requirement for a ‘bet’ or ‘wager’ under [Penal Code] section 337a: the California Supreme Court has explained that, ‘unlike a lottery,’ betting or wagering ‘may involve skill or judgment,'” the opinion said, addressing that claim. “Rather, the essential requirement of a ‘bet’ or ‘wager’ is that participants win or lose based on the outcome of an uncertain future event, such as a sports competition, even if skilled bettors consistently come out ahead.”

One DFS company, Underdog Sports, filed a pre-emptive lawsuit against the Attorney General and the California Department of Justice. The company claimed the Attorney General’s declaration that daily fantasy sports is illegal would “poison a thriving industry that serves millions of Californians.” Their appeal was rejected.

Does this mean the end of daily fantasy sports in California?

Underdog and DraftKings have both told Front Office Sports that despite the change they will continue to offer daily fantasy sports in California.

Whether the California Department of Justice will take any actual action against DFS companies remains to be seen, but it did state that it “expects companies to come into compliance with the law.”

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