Underdog has pulled its against-the-house pick’em product in California after Attorney General Rob Bonta declared that daily fantasy sports (DFS) are illegal in the state.
In place of the against-the-house game, players will be able to use Underdog’s peer-to-peer pick’em product, Champions.
Underdog made the transition late Wednesday, a company spokesperson reported. The platform now offers the P2P version of its pick’em game in 20 states.
“We brought the peer-to-peer pick’em game type to the industry, and now launched our champions game in 20 states. We expect California fans will love playing, which is what we have seen in every other state,” an Underdog spokesperson told Saturday Down South.
Attorney General Says Fantasy Sports Are Illegal
Underdog’s switch comes on the back of California Attorney General Rob Bonta issuing a formal opinion on DFS.
In the opinion released on July 3, Bonta stated, “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. Such games constitute wagering on sports in violation of Penal Code section 337a.”
The Penal Code states, “Any person who… lays, makes, offers, or accepts any bet or wager upon the result of any trial, or purported trial, or contest… of skill, speed or power of endurance of… persons or between persons and animals… is guilty of a crime.”
Bonta highlighted against-the-house pick’em games and draft-style games, in particular, as being against the law.
He also said that his stance was consistent with other states, writing, “Our conclusion is consistent with the view of out-of-state regulators. Regulators in Virginia, Arizona, Wyoming, and Florida, for example, have all concluded that state laws regulating sports wagering apply to pick’em.”
Underdog also only offers the P2P version of its pick’em game in Virginia, Arizona, Wyoming, and Florida.
Underdog Lawsuit Unsuccessful
The company had tried to block the release of AG Bonta’s opinion from being issued, but a judge denied the motion.
Underdog had stated in its lawsuit that, “If a negative opinion is issued, fantasy sports will prevail on the merits, no different than in New York and Illinois where courts rejected the similarly wrong opinions of those states’ attorneys general.”
The company agreed to pay a $17.5 million settlement fee and exit New York in March this year. The platform relaunched in May, offering a limited version of its DFS games, which do not include the against-the-house or P2P version of the pick’em product.
Underdog Fantasy denies it is a gambling site, but the company has launched Underdog Sportsbook to compete with sports betting sites. The sportsbook holds licenses in North Carolina, Ohio, and Colorado, and it also intends to launch in Missouri when the state opens up to sports betting later this year.
In addition to Underdog, PrizePicks also removed its against-the-house pick’em game and has replaced it with its Arena P2P games. Other DFS operators, such as DraftKings and FanDuel, remain active in the state.
