Underdog Fantasy Lawsuit
Underdog Fantasy Lawsuit
316869)
WILMER CUTLER PICKERING HALE
AND DORR LLP
50 California Street
San Francisco, CA 94111
Telephone: (628) 235-1000
Facsimile: (628) 235-1001 FILED / ENDORSED
[email protected]
By Fax
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L. INTRODUCTION.....uciiiiiiriseriesnnssaesesssnsssssessssssessssssessssessssessssssessssssesssssssssassssssssssssasens 1
A. The Paid Fantasy Sports Industry and Underdog’s Fantasy Sports Contests...................... 2
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Page(s)
Cases
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N.Y. Racing, Pari-Mutuel Wagering & Breeding Law §§ 1400 et seq. (2024)........ccooveveeueeenn... 13
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Other Authorities
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Behe, Fantasy sports leagues put armchair quarterbacks in the game, TribLIVE
10 (Dec. 14, 2002),
11 https://web.archive.org/web/20210709182225/https://archive.triblive.com/new
s/fantasy-sports-leagues-put-armchair-quarterbacks-in-the-game...............ooeveuereeeereennnnn. 25
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California Attorney General, Legal Opinions of the Attorney General - Frequently
13 Asked Questions, https://0ag.ca.goV/OPINIONS/TAGS ..........cvveeeeieeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeenes 10
Zavala, Online fantasy sports platforms may soon be illegal in California (June
25, 2025) KCRA3, https://www.kcra.com/article/online-fantasy-sports-
platforms-california/65196468 ............cooveeieiiiiriieeeeeeeeeeee e
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plp)
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Absent relief from this Court, Attorney General Rob Bonta will issue an opinion later this
week that will decimate fantasy sports in California. Attorney General Bonta should be enjoined
from doing so, not because he is wrong in his views on the legality of fantasy sports—though he
certainly is—but because by statute, the Attorney General can only issue opinions on questions
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of law and can only answer questions that relate to the duties of the official requesting the
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opinion. Neither is true here. Thus, Attorney General Bonta lacks authority to issue the opinion
10 Over several decades, fantasy sports have become an integral part of American sports
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culture, enjoyed by over 60 million people in the U.S. and Canada annually. Californians are no
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different, with millions taking up an activity that allows everyone from die-hard sports fans to
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casual observers to compete by managing fantasy teams of their choosing. Due to its popularity
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15 in the State, hundreds of fantasy sports-related businesses operate openly and lawfully in
16 California. Petitioner (“Underdog™) operates one of the most popular fantasy sports platforms
17 and counts more than half a million Californians as customers. But within a matter of days—and
18 no later than Thursday, July 3, 2025—Respondent Rob Bonta, the Attorney General of
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California, will issue an opinion that seeks to cripple this thriving industry and deprive
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Californians of an activity that they enjoy. With the stroke of a pen the Attorney General will
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adversely affect billions of dollars in commerce and label Underdog (and many others) as
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23 breaking the law.
24 The Attorney General lacks the authority to issue that opinion. California Government
25 Code § 12519 sets limits on the Attorney General’s authority to accept, and issue, requested legal
26 opinions. The Attorney General may only answer pure legal questions (“any question of law”)
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that “relat[e]” to the office of the requesting official. (Gov. Code § 12519.) As the Attorney
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The forthcoming opinion responds to a 2023 request that asks the Attorney General to
decide “whether California law prohibits the offering and operation of daily fantasy sports
betting platforms.” That is not a pure question of law; it is a request for the Attorney General to
apply California gambling law to the facts and circumstances of a particular industry—a
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quintessentially mixed question of law and fact. Nor does the request “relat[e]” to the office of
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the requester: The request does not inquire about the legality of any legislative functions or
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responsibilities, but rather asks the State’s chief law enforcement official to take a position on the
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legality of conduct that he is responsible for policing. In other words, the request seeks a pre-
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15 enforcement shot across the bow—a flexing of executive branch muscle in a way that is designed
16 to impair the businesses of Underdog and others in the fantasy sports industry.
17 Without this Court’s immediate intervention, this unlawful gambit may succeed.
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Underdog faces imminent irreparable harm—from fleeing customers, risk-averse banks and
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payment processors, and the loss of investment and goodwill—if the Attorney General issues the
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opinion as planned. Because Underdog received only days’ notice of the legal tidal wave that
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will arrive by Thursday, it timely seeks an ex parte temporary restraining order (TRO) to
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23 preserve the status quo that has persisted in California for decades.
24 IL FACTS
25 A. The Paid Fantasy Sports Industry and Underdog’s Fantasy Sports Contests
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Underdog offers a platform for millions of customers in the United States and Canada to
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compete in fantasy sports. Declaration of Dustin Cooper § 8. By accessing Underdog’s website
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fantasy contests. (Cooper Decl. 9 6-9.) Participants draft virtual rosters of athletes from
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multiple teams with the goal of scoring the highest number of points from the collective
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performance of their drafted athletes. In some formats of fantasy contests, participants manage
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their virtual rosters over time, selecting which players to start and which players to bench, and
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other formats, the significance of skillfully drafting the best team at the onset is greater, as
10 participants are more limited in the mid-season moves that they can make. (Gringer TRO Decl.,
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Ex. 2 (“Underdog Website Rules”).) The potential point values earned for the success of drafted
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players vary across different contests, requiring successful participants in each contest to develop
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advanced fluency with its rules.
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15 Regardless of the format of the contest, participants rely upon their analytical skills and
16 their particularized understanding of the athletes, their teams, and other factors like anticipated
17 matchups to increase their chances of winning. The predominant role of skill in fantasy sports
18 contests has been demonstrated by numerous statistical and economic experts and courts.
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Underdog has operated in California since 2020, and the state accounts for more than
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10% of the Company’s annual revenue. (Cooper Decl. § 16.) Underdog Fantasy is part of a
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well-established digital fantasy sports industry that serves at least 60 million participants every
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23 year across the United States and Canada. Fantasy contests are a major part of the broader sports
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27 ! See Dew-Be.cker v. Wu (2022) 2020 IL 124472, 926 [178 N.E.3d 1034, 1040]; White v. Cuomo
(2022) 38 N.Y.3d 209, 223 [192 N.E.3d 300, 313].
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television programming produced by major sports networks like ESPN (The Fantasy Show) and
NFL Network (NFL Fantasy Live). The Fantasy Sports & Gaming Association estimates that
approximately 19% of adult Americans participate in fantasy sports. (Fantasy Sports & Gaming
Under Government Code Section 12519, the Attorney General is permitted to issue a
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written opinion upon request from certain public officials, including Members of the Legislature,
10 “upon any question of law relating to [that official’s] respective office[].” (Gov. Code § 12519.)
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On November 2, 2015, California Assemblymember Marc Levine asked then-Attorney General
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Kamala Harris to issue an opinion regarding the legality of daily fantasy sports?; however,
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neither she nor her successor Xavier Becerra issued such an opinion.3 On October 5, 2023, then-
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I3 Senator Scott Wilk submitted a request to the California Attorney General’s Office to provide a
16 “legal opinion as to whether California law prohibits the offering and operation of daily fantasy
17 sports betting platforms with players physically located within the State of California, regardless
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of whether the operators and associated technology are located within or outside of the State.”
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(Gringer TRO Decl., Ex. 1 (“Opinion Request”).)
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% (Levin, Letter to Attorney General Kamala Harris (Nov. 2, 2015),
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25 https://www.legalsportsreport.com/wp-content/uploads/2015/11/AG-Letter-Nov-2.pdf.)
26 3 (Thomas-Akoo, Source says all paid fantasy sports to be banned in California, .io (June 26,
27 2025), https://next.io/news/regulation/source-says-all-paid-fantasy-sports-banned-california/.)
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listed as “pending” on his office’s website as Opinion No. 23-1001. (California Attorney
received submissions from representatives of the daily fantasy sports industry that addressed
various types of fantasy sports contests. (See Pet. § 53.) The Attorney General has also met with
market participants and collected other facts regarding the operation of fantasy sports contests.
See id. Indeed, representatives of the Department of Justice have told stakeholders that these
10 submissions have been “helpful” in developing the Attorney General’s understanding of the
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underlying facts as a necessary component in answering the question presented. (See Pet. q 54.)
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Senator Wilk left the state Legislature at the end of 2024, due to term limits. (See Wilk,
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A Heartfelt ‘Thank You’ to the SCV (2024) The Signal, https://signalscv.com/2024/11/scott-wilk-
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15 a-heartfelt-thank-you-to-the-scv/). The Attorney General did not issue an opinion responding to
17 Within the last few business days, however, it has become clear that Opinion No. 23-
18 1001, which has been “pending” for more than 18 months, is about to be issued. There is public
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reporting that the Attorney General “is soon expected to deem all online fantasy sports platforms
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illegal in the state,” and that the opinion explaining the reasoning behind this decision will be
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released “[w]ithin a matter of days.” (Zavala, Online fantasy sports platforms may soon be
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23 illegal in California (June 25, 2025) KCRA3, https://www.kecra.com/article/online-fantasy-
25 3rd”].)
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Underdog subsequently confirmed, through a conversation between the Attorney
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General’s office and Underdog’s counsel, that the opinion is indeed about to be released this
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finding all daily fantasy sports to be illegal under California law. Id. Although “daily fantasy
sports” is not itself a defined term, (see infra 14), any opinion prohibiting all daily fantasy sports
would purport to encompass a significant portion of Underdog’s fantasy contests. And that is the
plan. The Attorney General’s office confirmed that after releasing the opinion, the goal would
be to use the threat of an enforcement action—under the interpretation of California law that the
Attorney General will impermissibly announce in the opinion—to pressure Underdog into
agreeing to leave California entirely. (Gringer TRO Decl. §4) The Attorney General’s office is
10 looking to Texas Attorney General Ken Paxton, whose release of a legal opinion on fantasy
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sports led to a company pulling its paid fantasy sports products from the state nearly a decade
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ago, as its model. (/bid.) Upon learning that it would be irreparably injured by the issuance of
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the opinion, Underdog took immediate action, filing this lawsuit within two business days.
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16 A temporary restraining order preserves the status quo “until a final determination of the
17 merits of the action.” (People v. Uber Techs., Inc. (2020) 56 Cal.App.5th 266, [270 Cal. Rptr. 3d
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290, 304], as modified on denial of rehearing Nov. 20, 2020 [quoting Continental Baking Co. v.
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Karz (1968) 68 Cal.2d 512, 528].). To proceed on an ex parte basis, a petitioner must “make an
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affirmative factual showing in a declaration containing competent testimony based on personal
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knowledge of irreparable harm, immediate danger, or any other statutory basis for granting relief
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23 ex parte.” (Cal. Rules of Court, rule 3.1202(c).). “The ex parte hearing concerning a TRO is no
24 more than a review of the conflicting contentions to determine whether there is a sufficiency of
23 evidence to support the issuance of an interlocutory order to keep the subject of litigation in
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status quo pending a full hearing to determine whether the applicant is entitled to a preliminary
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“[T]rial courts should evaluate two interrelated factors when deciding whether or not to
issue [a restraining order]. The first is the likelihood that the plaintiff will prevail on the merits
at trial. The second is the interim harm that the plaintiff is likely to sustain if the [restraining
order] were denied as compared to the harm that the defendant is likely to suffer if the [order]
were issued.” (Church of Christ in Hollywood v. Superior Ct. (2002) 99 Cal.App.4th 1244, 1251
10 A moving party needs to demonstrate that “there a reasonable probability [it] will prevail
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on the merits.” (Heckmann v. Ahmanson (1985) 168 Cal.App.3d 119, 125 [214 Cal.Rptr. 177,
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181].) While the trial court has discretion as whether “to grant or deny a request for a
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preliminary injunction, it ... must exercise its discretion ‘in favor of the party most likely to be
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15 injured.”” (Robbins v. Superior Ct. (1985) 38 Cal.3d 199, 205.) In other words, “[i]f the denial
16 of an injunction would result in great harm to the plaintiff, and the defendants would suffer little
17 harm if it were granted, then it is an abuse of discretion to fail to grant the preliminary
18 injunction.” (/bid.)
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IV. ARGUMENT
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Underdog is likely to succeed on the merits of its petition for writ of mandate because
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Respondents’ decision to accept an opinion request on the legality of daily fantasy sports and to
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23 issue the forthcoming opinion violates the clear limits of Section 12519 of the California
24 Government Code. The Attorney General has a ministerial duty to decline an opinion request
25 outside the scope of its statutory authority, and even if he had discretion in carrying out that duty,
26 he has abused it here. Moreover, Underdog has standing—under both a beneficial interest and
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California if Respondents issue the opinion, but Respondents will suffer no cognizable harm if
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this Court preserves the status quo by requiring Respondents to adhere to the limits of their
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10 Relief under a writ of mandate is available “in two circumstances”: “mandamus may
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issue to compel the performance of a ministerial duty or to correct an abuse of discretion.”
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(Crestwood Behav. Health, Inc. v. Baass (2023) 91 Cal.App.5th 1, 15 [308 Cal.Rptr.3d 15, 24],
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rehearing denied May 23, 2023)
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15 To obtain relief under a writ of mandate for the first circumstance, a petitioner must
16 demonstrate “(1) no plain, speedy, and adequate alternative remedy exists [citation]; (2) a clear,
17 present, ... ministerial duty on the part of the respondent; and (3) a correlative clear, present and
18 beneficial right in the petitioner to the performance of that duty.” (Loeber v. Lakeside Joint Sch.
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Dist. (2024) 103 Cal.App.5th 552, 567 [323 Cal.Rptr.3d 18, 30], review denied Sept. 11, 2024.)
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The first of these requirements is the simplest here: Underdog has no alternative remedy
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to ensure the Attorney General adheres to the limits of his authority under Section 12519 because
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23 a writ of mandate is the only tool that can compel compliance with those limits and thereby
24 prevent the Attorney General from issuing Opinion No. 23-1001. And for the reasons discussed
25 below, Underdog has plainly made the required showing with respect to the second and third
26 requirements. Moreover, in light of the risk of imminent harm to Underdog, the issues raised in
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For the second circumstance, when a court reviews a public official’s decision for an
abuse of discretion, “the court may not substitute its judgment for that of the public [official’s].”
Instead, “the judicial inquiry ... addresses whether the public entity's action was arbitrary,
capricious or entirely without evidentiary support, and whether it failed to conform to procedures
required by law.” (Crestwood Behav. Health, Inc. v. Baass, supra, 91 Cal.App.5th 1, 16.) This
second circumstance is alternatively met because the Attorney General’s failure to comply with
10 the limits prescribed in Section 12519 is an abuse of discretion.
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1. The Decision to Accept a Request for, and to Imminently Issue, an Opinion
12 on the Legality of “Daily Fantasy” Sports Violates the Attorney General'’s
Duty to Adhere to the Clear Limits of Section 12519.
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a. Respondents have a ministerial duty to comply with the limitations
14 of Section 12519.
15 A ministerial duty “is an act that a public officer is required to perform in a prescribed
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manner in obedience to the mandate of legal duty and without regard to his own judgment or
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opinion concerning such act’s propriety or impropriety, when a given state of facts exists.”
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(Kavanaugh v. West Sonoma County Union High School Dist. (2003) 29 Cal.4th 911, 916 [129
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20 Cal.Rptr.2d 811, 814].) Officials required by statute to carry out a legal responsibility have a
71 ministerial duty to perform it according to the express statutory terms. (Lockyer v. City & Cnty.
22 of San Francisco (2004) 33 Cal.4th 1055, 1069 [17 Cal Rptr.3d 225, 231] [finding local officials
23 “exceeded their authority by taking official action in violation of applicable statutory provisions”
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and issuing a writ of mandate as the remedy]; see First Indus. Loan Co. of Cal. v. Daugherty
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(1945) 26 Cal.2d 545, 550 [“A ministerial officer may not ... vary or enlarge the terms of a
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legislative enactment or compel that to be done which lies without the scope of the statute and
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The California Attorney General has a ministerial duty to issue legal opinions only under
the conditions set forth in California Government Code § 12519. Section 12519 provides that:
“The Attorney General shall give the Attorney General’s opinion in writing to any Member of
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the Legislature, the Governor, [or certain other officials] when requested, upon any question of
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law relating to their respective offices.” (Gov. Code § 12519, emphasis added.) The Attorney
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General concedes that these terms indeed constrain his authority, writing in publicly available
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10 guidelines that “[t]he Government Code imposes certain textual limitations on the Attorney
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General’s responsibility to issue opinions under section 12519.” (Attorney General Opinions
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Guidelines at 2.)
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Three textual limits are relevant here. First, a legal opinion issued by the Attorney
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15 General must address only “question[s] of law.” (Gov. Code § 12519.) The Attorney General
16 has confirmed that he will not accept any requests for opinions “that require factual
17 investigations or that would require the resolution of a factual dispute.” (California Attorney
18 General, Legal Opinions of the Attorney General - Frequently Asked Questions,
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https://oag.ca.gov/opinions/fags (“OAG Legal Opinions FAQ™).) Accordingly, an opinion
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request that poses a mixed question of law and fact is beyond the appropriate scope of Attorney
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General opinions because mixed questions require factual investigations to permit “the
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23 application of the rule to the facts and [the] consequent determination whether the rule is
24 satisfied.” (People ex rel. City of Com. v. Argumedo (2018) 28 Cal.App.5th 274, 280 [239 Cal.
25 Rptr. 3d 128, 133].) Second, the Attorney General “shall give [his] opinion in writing fo any
26 Member of the Legislature” who has “requested” the opinion. (Gov. Code § 12519, emphasis
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added; see also Attorney General Opinions Guidelines, supra, at 1, emphasis added [“Section
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listed in the statute, and not to private individuals[.]”]). Third, under Section 12519, the
Attorney General may not accept a request for an opinion when the request is not “relat[ed] to
the [requesting official’s] office[].” (Gov. Code § 12519; see also OAG Legal Opinions FAQ,
supra [“When it is apparent that there is no connection [to the requesting official’s office], the
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These limits matter. The Attorney General is the State’s chief law enforcement official,
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[Cal. Const. art. V, §13], and so his authoritative statements about the meaning of California
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law—when contained in formal, but technically nonbinding, opinions—can have meaningful
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ramifications. This can be true in court, but the opinions can be even more influential outside of
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court, as they provide authoritative-seeming statements about what the law does, or does not,
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require. (Cf. Pet. § 59 [recounting how a digital fantasy sports company was forced out of Texas
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16 It is therefore essential that the Attorney General not exceed his authority to accept
17 opinion requests that pose only a “question of law.” This limit ensures that the Attorney General
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does not prejudge the outcome of any fact-dependent dispute in a setting devoid of procedural
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protections. And it prevents the Attorney General from branding particular conduct illegal
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without having the facts and process necessary to make that determination.
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Similarly, requiring the Attorney General to only give opinions “to” a particular public
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23 official, and insisting that the public official’s request “relat[e] to their respective office[],”
24 (Gov. Code § 12519) ensures that the Attorney General does not needlessly set down new legal
25 markers. Instead, the Attorney General will set out his legal views only when a need arises in
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relation to the demands of a particular state official’s duties, not whenever a member of the
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public might prefer one. In the context of requests from Members of the Legislature, this limit
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a purely executive function to dictate the State’s use of executive branch resources. (See Cal.
Const. art. III, § 3.) The Legislature violates this doctrine if it “intrudes upon what might be
characterized as the ‘core zone’ of the executive functions of the Governor (or another
Notwithstanding the limits on his authority, the Attorney General accepted a 2023 request
10 for an opinion submitted by then-Senator Scott Wilk that asks the Attorney General to decide
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whether particular conduct violates California’s gambling laws. As relevant here, the request
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asks for a “legal opinion as to whether California law prohibits the offering and operation of
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daily fantasy sports betting platforms[.]” (Opinion Request.) The decision to accept that
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15 request, and to publish the forthcoming opinion, violates the Attorney General’s ministerial
17 To start, the opinion request does not pose a question of law. (See People ex rel. City of
18 Com. v. Argumedo, supra, 28 Cal.App.5th 274, 280 [contrasting legal questions with mixed
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questions of fact and law].) Instead, it asks about the application of “California law” to specific
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conduct—*“the offering and operation of daily fantasy sports betting platforms.” (Opinion
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Request). For the reasons outlined below, answering this question requires both a factual
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23 assessment of the characteristics of different fantasy sports contests and an empirical
25 which is permissible for an Attorney General opinion. (See, e.g., 109 Ops.Cal.Atty.Gen. 2
26 (1980) [“The second question necessarily involves questions of fact, thus we are unable to
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The request falters out of the gates because it asks the Attorney General to express his
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views about the legality of a category of products—*“daily fantasy sports betting platforms”—
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that does not have a consensus factual, much less legal, definition.* There is no agreed upon set
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of contests that fall under the umbrella of “daily fantasy sports.” (Cooper Decl. § 11) And that
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is in part because the rules and terms of different fantasy contests vary widely. Some contests
require ongoing management of the participant’s roster over the length of a season, whereas
10 others restrict the changes a participant might make to the roster after the initial drafting,
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necessitating greater upfront research and time investment in creating the initial roster. (Id. { 8;
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Underdog Website Rules.). The contests vary in prize structures, formats, number of
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participants, scoring criteria, and sports. (Id.) The calculation of which players to draft in a
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15 season-long or tournament-format contest will vary wildly from the strategic calculations that go
16 into a short-duration contest. Even within similar sports and formats, the rules for scoring
17 different contests may vary. For example, in one baseball contest, a pitcher’s win might be
18 worth 5 points and each strikeout is worth 3; in another, wins are not a factor but WHIP (a metric
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that assesses a pitcher’s walks + hits per inning pitched) and XERA (a pitcher’s expected earned
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run average) are. Like a professional sports team’s general manager, a skilled participant must
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24 4 The most commonly used definition of “fantasy ... sports games” appears in federal law, and it
is mirrored in various state statutes that repurposed that definition. (31 U.S.C.§ 5362.) But those
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definitions have no “daily” component. New York for example, uses the term “interactive
26 fantasy sports” because the duration of the contest is immaterial under that state’s laws. (See
N.Y. Racing, Pari-Mutuel Wagering & Breeding Law §§ 1400 e seq. (2024).) In any event, by
27 labeling these products “betting platforms,” the request at issue here also attempts to prejudge
the Attorney General’s answer.
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under the specific contest rules. (Cooper Decl. ] 8-9; Underdog Website Rules.)
The question under consideration for Opinion No. 23-1001, whether “daily fantasy
sports” platforms are prohibited, necessarily elides the distinctions between the different kinds of
contests that have been labeled “daily fantasy sports.” Accordingly, to even attempt to answer
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the question then-Senator Wilk posed, the Attorney General must engage in the kind of factual
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inquiry that Section 12519 prohibits. And given the more than 18 months it has taken to answer
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the question, it is obvious that such a factual inquiry has, in fact, taken place.
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Opining on the legality of the daily fantasy sports industry requires a further factual
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inquiry: an examination of the relative role of skill versus chance across the many different kinds
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of contests that companies like Underdog offer. (See, e.g., People v. Settles (1938) 29
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Cal.App.2d Supp. 781, 787 [holding that, in California, the primary test of whether a game
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15 requiring payment for participation constitutes an illegal lottery is whether “chance or skill ... is
17 prohibition on operating an unlicensed “game of chance” in framing his question for the
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Attorney General. (Opinion Request.)
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The skill versus chance inquiry is a familiar one. Courts regularly engage in detailed
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factfinding—including by relying on evidence from statistical experts and from participants in
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the contest or game—to determine whether skill predominates over chance for a given game or
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23 contest. For example, in Bell Gardens Bicycle Club v. Department of Justice (1995) 36
24 Cal.App.4th 717, the court relied on extensive expert testimony in the record, including from a
25 professional poker player and a statistics professor from U.C. Berkeley, to determine whether a
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form of poker called “jackpot poker” was a game of skill or an “illegal lottery.” (/d. at 752,
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the jackpot prize through skill and not by chance.” (Id. at 753.)
Similarly, when questions like the one presented by Opinion No. 23-1001 have arisen in
other states, courts have carefully weighed the factual evidence about whether the most
successful digital fantasy sports players rely on skill or luck to succeed. In White v. Cuomo,
supra, the Court of Appeals of New York emphasized that “the legislature’s factual
determination that [interactive fantasy sport] contests are a game of ‘skill,” not of ‘chance’... —
and therefore are not ‘gambling’ — has resounding support.” (38 N.Y.3d 209, 223, emphasis
10
added). The court also cited “[s]tudies show[ing] that skilled players achieve significantly more
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success in IFS [interactive fantasy sport] contests and that rosters of skilled human players were
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more successful in IFS contests than randomly generated lineups over 80% of the time.” (/bid.)
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The White court also relied on an expert opinion arguing that “IFS games ‘have an inherent and
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IS5 vast character of skill where chance is overwhelmingly immaterial in the probability of winning’
16 and winning a prize in such contests ‘strongly depends more on skill than on chance.’ In fact, it
17 is now ‘widely recognized’ that IFS contests are predominately skill-based competitions.” (/d. at
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224))
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The Illinois Supreme Court engaged in a similar inquiry. In a case about whether daily
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fantasy sports platforms are illegal, the court explained that the central question it had to answer
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was “whether head-to-head DFS contests are predominately determined by the skill of the
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23 participants in using their knowledge of statistics and the relevant sport to select a fantasy team
24 that will outperform the opponent. Several recent, peer-reviewed studies have established that
25 they are.” (Dew-Becker v. Wu, supra, 2020 IL 124472, 9 26.) The Wu court cited those peer-
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reviewed studies and articles in support of its factual determination that 1319
“‘skill is always the
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dominant factor’ in head-to-head DFS contests involving NBA games.” (/bid.) Indeed, the state
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contests are illegal under Illinois law”—precisely because the opinion had not considered
important factual information about the degree to which skill predominates over chance in
Ultimately, the Attorney General cannot determine as a legal matter whether daily
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fantasy sports contests are prohibited without at least some consideration of the relevant facts.
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And indeed, that consideration has already taken place. The Attorney General has received, and
considered, submissions from representatives of the digital fantasy sports industry about the
Ao
10 details of different various contests and the degree to which skill predominates over chance. (See
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Pet. 9 53-54.) And he has interviewed market participants about facts pertaining to digital
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fantasy sports. (/bid.) In other words, he has engaged in the kind of “factual investigation[]”
13
that his own policy proscribes (OAG Legal Opinions FAQ, supra.), and that transgresses the
14
15 limits of Section 12519. And he has done so precisely because the question presented is
16 inherently fact-bound and cannot be answered without assessing how the many formats of
17 fantasy contests operate and the degree of skill participants exert in determining the outcomes of
18 those different contest types.
19
The Attorney General’s actions fail to abide by a second limit in Section 12519: the
20
requirement that the Attorney General “shall give” his opinion “zo [the] Member of the
21
Legislature” that requested it. (Gov. Code § 12519, emphasis added.) Because Senator Wilk left
22
23 office in 2024 due to term limits, and is now a private citizen, he is not a “Member of the
24
25
26
27
28 -16 -
General Opinions Guidelines, supra, at 1 [noting “private individuals” may not request or
receive Attorney General opinions].) Enforcing that limit makes good sense in light of the
mandatory language—the Attorney General “shall give” his opinion “when requested”—in the
statute. (Gov. Code § 12519.) If that obligation extended after the requester has left office, then
a member of the Legislature on his way out of office could demand answers on a range of
controversial issues, and the Attorney General would have to provide them notwithstanding that
the answers would no longer relate to the individual’s former legislative duties.
10 Finally, the request for Opinion No. 23-1001 does not comply with the requirement that
11
an opinion “relat[e]” to the requesting official’s “respective office[]s.” (Gov. Code § 12519.)
12
Again, because Senator Wilk is no longer in office, he no longer has an office for the opinion to
13
“relat[e]” to. (/d.) For that reason alone, the statute does not permit a response to the request.
14
15 But even setting that fatal shortcoming aside, the request does not relate to any legislative office
16 because it asks California’s chief law enforcement officer to stake out a position about whether a
17 longstanding business activity in the State is legal. That question goes to the core of executive
18 branch power. (See, e.g., People v. Boyd (1979) 24 Cal.3d 285, 291 [“[T]he prosecutorial
19
functions [are] vested in the executive branch.”].) By requesting a legal opinion about whether
20
specific conduct violates the law, former Senator Wilk stepped outside his legislative
21
22
23 3 Public reporting suggests that Republican Assemblyman Tom Lackey may have “follow[ed]
up” on Senator Wilk’s efforts once Wilk left office. (See Zavala, Online Fantasy Sports
24 Platforms May Soon Be Illegal In California, supra.) But that does not change the Attorney
25 General’s authority to respond to the original request. The only relevant request on the Attorney
General’s website is for Opinion No. 23-1001, submitted by Senator Wilk, who is no longer in
26 office. (See California Attorney General, Legal Opinions of the Attorney General-Monthly
Opinion Report, supra.) 1f the Attorney General issues Opinion No. 23-1001, he could not “give
27 the ... opinion in writing to” the “Member of the Legislature” who “requested” it because,
again, the requester is no longer in office. (Gov. Code § 12519.)
28 -17 -
The Attorney General should have recognized this departure and declined this request.
In sum, by accepting opinion request No. 23-1001 and deciding to publish the
forthcoming opinion, Respondents have violated their ministerial duty to adhere to the limits on
Because the limits on the Attorney General’s authority under Section 12519 are clear—
10 and have been acknowledged by the Attorney General himself—his duty to abide by them is
11 ministerial. But even if that duty was discretionary, Underdog would still be likely to succeed in
12
its petition. A writ of mandate can be used “to correct abuses of discretion.” (People for Ethical
13
Operation of Prosecutors etc. v. Spitzer (2020) 53 Cal.App.5th 391, 407 [267 Cal. Rptr. 585,
14
598], as modified (Sept. 8, 2020).) In such cases, “[a] reviewing court may issue a writ of
15
16 mandate that requires legislative or executive action ‘to conform to the law,’” but it may not
17 substitute its own discretion. Bull Field, LLC v. Merced Irrigation Dist. (2022) 85 Cal.App.5th
18 442,456 [301 Cal.Rptr.3d 622, 633], citation omitted; see also Schwartz v. Poizner (2010) 187
19
Cal.App.4th 592, 598 [113 Cal.Rptr.3d 610, 615] [“[A] party seeking review under traditional
20
mandamus must show the public official or agency invested with discretion acted arbitrarily,
21
capriciously, fraudulently, or without due regard for his rights, and that the action prejudiced
22
23 him.”]).
24 Respondents have abused any discretion they possess by deciding to accept an opinion
25 request, and to publish a forthcoming opinion, that fails to adhere to the limits on Attorney
26 General authority under Section 12519. (Cf. Morris v. Williams (1967) 67 Cal.2d 733, 737
27
[“Administrative regulations that violate acts of the Legislature are void and no protestations that
28 -18 -
Section 12519 constrains the Attorney General’s discretion to issue opinion by requiring that the
Attorney General only accept an opinion request and issue an opinion that raises a question of
law and that relates to the requesting official’s office. By acting outside those constraints, the
Attorney General has acted arbitrarily in a manner that threatens Underdog with imminent,
irreparable harm. A writ of mandate is thus necessary to compel the Attorney General “to
conform to the law.” (Bull Field, LLC, supra, 85 Cal.App.5th 442, 456.)
13 right/public duty exception to the beneficial interest for a writ of mandate” applies. (Save the
14 Plastic Bag Coal. v. City of Manhattan Beach (2011) 52 Cal.4th 155, 165-66 [citing Code Civ.
15 Proc., § 1086].) Underdog has standing under both doctrines.
16
First, Underdog is a “beneficially interested” party in this dispute. (Doe v. Albany
17
Unified Sch. Dist. (2010) 190 Cal.App.4th 668, 682 [118 Cal.Rptr.3d 507, 518] [citing Code
18
Civ.Proc., § 1086].) “The requirement that a petitioner be ‘beneficially interested’ has been
19
20 generally interpreted to mean that one may obtain the writ only if the person has some special
23 interest to be served or some particular right to be preserved or protected over and above the
22 interest held in common with the public at large.” (Carsten v. Psychology Examining Com.
23
(1980) 27 Cal.3d 793, 796-97 [166 Cal.Rptr. 844, 846]; see also Loeber v. Lakeside Joint School
24
Dist, supra, 103 Cal.App.5th 552, 568 [“The beneficial interest standard ‘is equivalent to the
25
federal “injury in fact” test[.]’”]).
26
27
28 -19 -
(Save the Plastic Bag Coal., supra, 52 Cal.4th 155, 165.) The Attorney General has decided to
accept a request (for Opinion No. 23-1001), and to publish a forthcoming opinion, that directly
NN
bears on Underdog’s ability to operate in California. The Attorney General has made plain to
W
Underdog that it intends to drive it out of California entirely, completely ending its business
N
operations here. For all of the reasons described below, infra sec. B, that opinion threatens
N
Underdog with imminent, irreparable harm. Respondents’ actions therefore have “direct and
0
substantial” consequences for Underdog’s business and the future of the industry in which it
O
10 operates. (Save the Plastic Bag Coal., supra, 52 Cal.4th 155, 165.) Because the Attorney
11
General’s opinion has important implications for how Underdog operates its business in
12
California, Underdog has a “particular right to be preserved or protected over and above the
13
interest held in common with the public at large.” (Id.)
14
15 Second, Underdog has public interest standing to bring this petition because it is “one of
16 public right and the object of the mandamus is to procure the enforcement of a public duty.” (/d.
17 at p. 166.) In such cases, a petitioner need not show that “[it] has any legal or special interest in
18 the result, since it is suffi’cient that [it] is interested as a citizen in having the laws executed and
19
the duty in question enforced.” (/d.) “This exception to the beneficial interest requirement
20
protects citizens’ opportunity to ‘ensure that no governmental body impairs or defeats the
21
purpose of legislation establishing a public right.”” (Weatherford v. City of San Rafael (2017) 2
22
23 Cal.5th 1241, 1248.) Public interest standing is appropriate here because the purpose of the
24 petition is to require the Attorney General to comply with the public duties set out in California
25 Government Code § 12519. Section 12519 places important limitations on the Attorney
26 General’s authority to issue opinions, and it is a matter of public importance—not least because
77
of the countless employees and fantasy sports contest participants who will be affected—that the
28 =20 -
Underdog’s claims are ripe for adjudication. The ripeness requirement “prevents courts
from issuing purely advisory opinions.” (Communities for a Better Env't v. State Energy Res.
O
Conservation & Dev. Com. (2017) 19 Cal.App.5th 725, 732 [227 Cal.Rptr.3d 486, 492].)
N
Although the “precise content of the doctrine is difficult to define and hard to apply, generally
speaking, a controversy is ripe when it has reached, but has not passed, the point that the facts
10 have sufficiently congealed to permit an intelligent and useful decision to be made.” (Id. at p.
11
733, internal quotations omitted.) By contrast, “unripe cases are those in which parties seek a
12
judicial declaration on a question of law, though no actual dispute or controversy ever existed
13
between them requiring the declaration for its determination.” (Id., internal quotations omitted.)
14
15 This controversy “has reached, but has not passed,” the key inflection point. (/d.) It is
16 now clear—indeed, the Attorney General’s office has acknowledged—that the Attorney General
17 will issue a sweeping, unfavorable opinion this week that will be damaging to Underdog’s
18 interests. (See Gringer TRO Decl. ] 2-4.) Accordingly, there is no other window in which both
19
the legal shortcomings of the Attorney General’s decision to accept the request for and issue
20
Opinion No. 23-1001 have been clear and the consequences of those shortcomings have been
21
knowable and imminent. The facts are thus “sufficiently congealed” and require judicial
22
23 adjudication to prevent imminent harm to Underdog. (Communities for a Better Env't, supra, 19
24 Cal.App.5th 725, 733.) After all, “the [ripeness] requirement should not prevent courts from
419, 432 n. 14 [189 Cal.Rptr. 346, 354] ]“If the issue of justiciability is in doubt, it should be
In deciding whether to issue a TRO, “the trial court compares the injury to the plaintiff in
O
the absence of a restraining order to the injury the defendant is likely to suffer if an order is
9
issued.” (Church of Christ in Hollywood v. Superior Court, supra, 99 Cal.App.4th 1244, 1257.)
0
10 showing ... of irreparable harm, immediate danger, or any other statutory basis for granting relief
11
ex parte.” (Cal. Rules of Court, rule 3.1202(c).) This case is not a close question. Absent a
12
TRO, Underdog faces irreparable harm from the Attorney General’s forthcoming unfavorable
13
opinion, which will jeopardize Underdog’s ability to operate in California and permanently
14
15 undermine Underdog’s business interests. Underdog has made an affirmative factual showing
16 that an expedited ex parte proceeding is necessary—because the Attorney General plans to issue
17 an unfavorable opinion this week, Underdog faces imminent, irreparable harm that can only be
18 prevented by a timely TRO.
19
On the other side of the ledger, Respondents suffer no injury from the issuance of a TRO.
20
A TRO would simply temporarily delay the issuance of an unlawful opinion to give the Court
21
more time to decide the merits of the underlying petition and preliminary injunction motion.
22
23 Because the Opinion Request has been pending since October 19, 2023, it is not likely that a few
such an order, the Attorney General will publish Opinion No. 23-1001 in a matter of days,
(Gringer TRO Decl. § 2-4), and a string of negative consequences will unfold. Dustin Cooper,
NN
Underdog’s Chief Business Officer and immediate past Chief Financial Officer, has described
D
these consequences in depth in his accompanying declaration. (See Cooper Decl. 9 2, 15-30.)
N
First, many of Underdog’s customers in California would withdraw money from their
N
accounts on the mistaken belief that Underdog is in violation of California law. (Id. §18.)
Relatedly, the legal uncertainty the opinion would create would also cause Underdog to face
10
challenges in obtaining services from the third-party providers, suppliers, and vendors that it
11
relies on to sustain its operations in California. (See id. §19.) These include banks and payment
12
processors, online marketplaces, and marketing and advertising firms that operate in the state.
13
(Id. 99 19-22.) Additionally, the negative perceptions generated by the opinion would undermine
14
15 Underdog’s ability to recruit and maintain talented employees, partner with content creators, and
17 Underdog would additionally lose out on significant business opportunities, both inside
18
and outside of California. (/d. §25.) California is such an important market that investors and
19
other industry insiders pay close attention to developments in the state. (/d.) The Attorney
20
General’s opinion would therefore send a strongly negative signal to current and potential
21
investors and business partners, costing Underdog opportunities to grow its business elsewhere.
22
23 (Id.) The contemplated opinion would also impair Underdog’s ability to apply for and maintain
24 licenses for operating fantasy sports and online sports wagering. (Id. §26.)
25 These harms will persist even if Underdog eventually receives a favorable judgment on
26
the merits of its petition. Some California customers who withdraw funds from their accounts
27
will not return. (/d. §27.) Likewise, lost customers and continued legal uncertainty will likely
28 95 =
and business partners, to refrain from investing or reinvesting in Underdog and to instead put
their money elsewhere. (/d. §928-29.) The financial costs and loss of goodwill that Underdog
will incur amidst these disruptions are significant and irreparable. (See e.g., People v. Uber
Techs., Inc. (2020) 56 Cal.App.5th 266, 305-06 [270 Cal.Rptr.3d 290, 322] [citing American
O
Trucking Assocs., Inc. v. City of Los Angeles (9th Cir. 2009) 559 F.3d 1046, 1058] [for the
N
proposition that irreparable harm can result from a company “incurring large costs in
0
10
Finally, in assessing the likelihood and magnitude of the harm in this case, it is
11
significant that the fantasy sports industry has seen this play before. The fallout from an attorney
12
general’s opinion on the legality of fantasy sports is unmistakable: FanDuel and Draft Kings,
13
two of Underdog’s competitors, faced such significant financial and legal pressures in the wake
14
15 of an attorney general opinion in Texas and a cease-and-desist letter in Alabama that they were
16 forced to withdraw all of their paid products from the states.® In other words, the stakes for
17 Underdog’s business in California are existential, and irreparable harm is likely to flow from the
18
opinion in the absence of an injunction.
19
2. Respondents Will Not Suffer Harm from an Injunction
20
Respondents, however, will not suffer any cognizable harm if this Court temporarily
21
enjoins the release of Opinion No. 23-1001. Then-Senator Wilk requested the opinion in
22
23
24
25 6 (See, e.g., Purdum, FanDuel to cease paid contests in Texas in May; DrafiKings files suit (Mar.
4, 2016) ESPN, https://www.espn.com/sports-betting/story/ /id/14903788/fanduel-texas-
26 attorney-general-reach-settlement-cease-paid-operations-state-1; Fantasy sports companies to
comply with Attorney General and cease operations in Alabama (Apr. 29, 2016) ABC 33/40,
27 https://abc3340.com/news/local/fantasy-sports-companies-to-comply-with-attornery-general-
and-cease-operations-in-alabama.)
28 - 94 -
would have been Senator Wilk as the requester of the opinion. But because he is no longer in the
Legislature, any additional delay does not harm him. For Respondents, the fact that the opinion
has sat in the Attorney General’s queue for so long demonstrates that there is no reason to think
that a brief delay (while this Court considers Underdog’s petition on the merits) will cause
Respondents any injury at all. Underdog, by contrast, only learned about the full scope of the
Attorney General’s forthcoming opinion the evening of Thursday, June 26, 2025—Iess than two
business days before bringing its petition for writ of mandate and this ex parte TRO application.
10 (See Gringer TRO Decl. 4 2-4.) That difference in urgency between the parties mirrors the
11
difference in the harms they respectively face.
12
Moreover, Respondents will be hard-pressed to identify any tangible harms given that
13
they have permitted Underdog to operate in California since 2020 without incident. (Cooper
14
15 Decl. §16.) More broadly, online fantasy sports platforms have been operating in California for
16 more than thirty years.” Respondents will not be harmed by preserving the decades-long status
17 quo for a matter of days or weeks, particularly because an injunction here would not limit any
18 enforcement authority Respondents possess.
19
Finally, there can be no harm to Respondents (or to the people of California) in
20
preventing Respondents from acting outside the scope of their statutory authority, because “[a]n
21
agency that exceeds the scope of its statutory authority acts ultra vires and the act is void.”
22
23 (Water Replenishment Dist. of S. California v. City of Cerritos (2012) 202 Cal.App.4th 1063,
24
25
26 7 (Behe, Fantasy sports leagues put armchair quarterbacks in the game, TribLIVE (Dec. 14,
2002), https://web.archive.org/web/20210709182225/https://archive.triblive.com/news/fantasy-
27 sports-leagues-put-armchair-quarterbacks-in-the-game [noting that “www.espn.com launched its
fantasy games in 1995”].)
28 « 25 =
Respondents because the government “cannot suffer harm from an injunction that merely ends
an unlawful practice.” (Rodriguez v. Robbins (9th Cir. 2013) 715 F.3d 1127, 1145.)
V. CONCLUSION
For the foregoing reasons, a temporary restraining order is necessary to preserve the
O
status quo, and the Court should (1) issue a Temporary Restraining Order prohibiting
9
Respondents from issuing Opinion No. 23-1001, or from issuing any similar opinion pertaining
0
to the legality of daily fantasy sports platforms under California law, pursuant to the Attorney
O
10 General’s authority under Government Code Section 12519; and (2) an Order to Show Cause
11
why that relief should not be extended by Preliminary Injunction until a final judgment is
12
entered.
13
14
15 DATED: June 30, 2025
16 Respectfully submitted,
Fantasy sports involve skill through the analytical selection and management of player rosters based on understanding athletes, teams, and relevant strategies. However, chance also plays a role, since outcomes depend on unpredictable real-world game performances. The complexity arises because California law requires determining whether skill or chance predominates, which is a mixed question of law and fact not typically addressed by an Attorney General opinion .
The request does not pose a pure question of law because it involves mixed questions of fact and law, specifically the factual nature of fantasy sports contests and whether they involve more skill or chance. The Attorney General is restricted from providing opinions that require factual investigation or assessments, which are beyond his statutory obligations .
Underdog faces imminent irreparable harm, such as the loss of customers, difficulties in processing payments due to risk-averse banks, and the loss of investment and goodwill. These issues stem from the potential negative impact of the Attorney General's legal opinion on the legality of daily fantasy sports, which could force Underdog to withdraw from California .
In deciding whether to issue a TRO, the court evaluates the potential interim harm to the plaintiff if the restraining order is denied against the harm to the defendant if it is granted. In this case, the balance favors Underdog, given the significant and immediate harm they face from the potential issuance of an adverse opinion, compared to the lack of harm to the state if the status quo is preserved .
The Attorney General's actions allegedly violate Section 12519 by accepting a request that poses a mixed question of law and fact, which is beyond his statutory authority to address solely as a legal question. Additionally, the opinion sought does not relate to the office of the requester, as the requester was a former Senator who is no longer in office, further violating the requirement that opinions relate to legislative duties .
In California, a TRO is issued to preserve the status quo when there is a likely success on the merits and a risk of irreparable harm without the injunction. The moving party must show immediate danger and a lack of adequate remedy. Underdog meets these standards by demonstrating imminent harm from the Attorney General’s impending opinion and no alternate remedies, fulfilling the criteria required for a TRO .
The request is procedurally incorrect because it originated from a former Senator who has since left office, conflicting with the requirement that only current legislators have the standing to request such opinions. Additionally, the opinion sought does not align with legislative duties, further exceeding the Attorney General's procedural boundaries under the California Government Code .
The California Attorney General's office is using the example set by Texas Attorney General Ken Paxton, whose legal opinion led to a fantasy sports company withdrawing its paid products from Texas nearly a decade ago. This outcome serves as a guide and potential expectation for the actions in California .
Ripeness affects the court's decision to intervene because it ensures that the issues are sufficiently developed for judicial review. The Attorney General's opinion and its potential immediate impacts on the fantasy sports industry illustrate a situation where facts are "sufficiently congealed," making judicial action necessary to avoid imminent harms and provide clarity in an area of public interest .
Underdog argues that the Attorney General's acceptance of the opinion request violat...