The California attorney general’s opinion that daily fantasy constitutes sports betting and is therefore illegal in the state could spell the end to MLB team sponsorship deals that the Dodgers, Giants and Padres signed with pick ’em operator PrizePicks earlier this year.
MLB cleared the way for the clubs in states that haven’t legalized sports betting to sign sponsors in the increasingly gray “daily fantasy” category based on their own lawyers’ determination of whether those companies and their offerings have been deemed legal in their state.
If it’s clear they’re not, the clubs can’t do deals.
PrizePicks switched its offering in California from its standard against-the-house model to its peer-to-peer Arena platform soon after state AG Rob Bonta issued the 33-page opinion, but it appears likely that also would be deemed illegal based on its breadth.
PrizePicks could continue to offer its peer-to-peer product in California in spite of the AG’s position and wait to see if the state follows up with cease-and-desist orders. Though often used to inform the positions of judges and lawmakers, AG opinions are not binding and don’t change state law. PrizePicks also could fight any action by the state in court. Gov. Gavin Newsom has said he disagrees with the AG’s opinion.
Though MLB clubs can sign multiyear deals in the category, they must be approved each season. It’s unlikely the league would do that for the Dodgers, Padres and Giants with an AG opinion to the contrary on the books.
There’s also not much reason for PrizePicks to keep the sponsorship if it’s eventually forced out of the state.
The opinion also declared traditional DFS games operated by FanDuel and DraftKings to be out-of-bounds. Neither has MLB team deals in the state.
