07-03-2021

Of course, FanDuel and DraftKings are the two most popular DFS operators in California. In fact, FanDuel and DraftKings have reportedly cornered more than 90 percent of the DFS market across the United States. In November 2016, the two companies entered into a merger agreement. DraftKings restricted states – Visit DraftKings Now. The states where DraftKings blocks players are: Arizona, Alabama, Hawaii, Idaho, Iowa, Louisiana, Montana, Nevada and Washington State. Note that we’re not asserting that these are states where DraftKings is illegal to play. The law regarding operation of a game and the law regarding.

California is the biggest market in daily fantasy sports (DFS). It houses more than 120,000 active DFS players who make up 10% of all entries across the US.

The GoldenState is sitting on a lucrative daily fantasy market. The only problem is that state legislators have yet to regulate this form of gambling.

So, can you legally play DFS in California? We’ll address this and more while discussing the current situation with CA daily fantasy sports.

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Is daily fantasy sports legal in California?

Strictly speaking, daily fantasy sports (DFS) is not legal in the state of California. That is to say, there is no law explicitly making it legal.

California lawmakers began considering daily fantasy sports legislation in 2015. In fact, the California Assembly passed a bill seeking to legalize, regulate and tax DFS in January 2016. However, the Senate has not acted on the bill in the 18 months since it passed through the Assembly.

This doesn’t mean there is no DFS in the state though. In actuality, major DFS operators, including FanDuel and DraftKings, still accept players. The sites do not believe DFS constitutes illegal gambling.

Instead, DFS operators consider it a skill game. As a result, the sites believe a clause in the 2016 Unlawful Internet Gambling Enforcement Act allowing real-money fantasy sports supports this theory.

Ultimately, these sites believe DFS is legal in California in the absence of a law making it illegal.

Biggest DFS sites in California

Of course, FanDuel and DraftKings are the two most popular DFS operators in California. In fact, FanDuel and DraftKings have reportedly cornered more than 90 percent of the DFS market across the United States.

In November 2016, the two companies entered into a merger agreement. In July 2017, the deal fell apart after the Federal Trade Commission moved to block the merger.

In the wake of the failed union, DraftKings occupied a stronger market position; FanDuel’s CEO Nigel Eccles left the company, and it conducted a round of layoffs in December 2017.

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How popular is DFS in California?

As the most populous state in America and a known hotbed for professional sports, California represents the largest market for DFS.

Estimates suggest DFS sites are pulling in as much as $20 million in revenue annually from California players. In fact, the state is responsible for more than 10 percent of all DFS contest entries in the United States.

It is estimated California has almost 120,000 active DFS players, the most of any state. Plus, those players are responsible for more than $200 million in annual entry fees, the most of any state by a rather large margin.

California DFS regulation

There is no legal framework, fees,or taxes associated with DFS operations in California.

The California Assembly passed a bill seeking to legalize, regulate, and tax DFS by a 62-1 margin in January 2016. However, it stalled at the Senate level. The California Assembly was actually the first legislative body in the United States to approve a bill regulating DFS.

The bill was a little light on specifics. However, it clearly sought to establish a licensing process for DFS operators in California. If the bill became law, operators would pay a licensing fee and a quarterly tax based on gross income. However, the bill the Assembly passed did not specify what exactly the fee or tax rate would be. The Assembly expected the Senate to weigh in on these specific details and amend the bill to include them before voting on it.

The bill also included language surrounding a self-exclusion program for problem players and requirements that sites differentiate between DFS players and beginners. It also imposed a minimum player age of 21.

California 21st District Assemblymember Adam Gray introduced the bill. He maintained it aimed at protect the hundreds of thousands of Californians already playing DFS. These players continue to play in the unregulated market in California.

What California’s AG says about daily fantasy sports

In 2015, Assemblymember Marc Levine asked then-California Attorney General Kamala Harris to examine the legality of DFS in the state. More specifically, Levine wrote a letter to the AG’s office asking Harris to clarify that DFS is illegal. Then, Levine hoped he would order FanDuel, DraftKings and other fantasy sports betting websites to immediately discontinue business in the state.

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At the time, several media outlets reported that Harris declined to comment on the letter, citing potential interference with a pending DFS investigation. It was also widely reported that Harris would not confirm nor deny the state, or her office, were investigating DFS operations in the state.

Nothing ever came of this. Harris never commented on DFS again. In November 2016, Harris was elected to serve in the United States Senate. Xavier Becerra took over as Attorney General of California in January 2016. Governor Jerry Brown appointed him to the post. Becerra has not made any public statements regarding DFS in California.

Which DFS sites would try for licenses in California?

If California regulated daily fantasy sports, it would attract many potential operators.

Card rooms, racetracks and tribal casinos would explore the opportunity. They could also partner with existing sites to get off the ground immediately.

For example, a major card room or casino could align with DraftKings. Such a move would give it access to an operator with reliable DFS software and a history of success.

Operators would likely be required to cover a licensing fee and taxes. They’d also need to be vetted by gaming regulators and approved for a license.

Of course, these conditions are common in regulated DFS markets. Many operators would still be interested in serving California’s population of 40 million.

Some card rooms, tracks and tribes could also launch solo operations that don’t involve partners. Tribalcasinos, which aren’t keen on sharing the gaming market, might especially explore their own DFS ventures.

This route typically isn’t popular in online gambling given the costs and time associated with developing proprietary software. However, some land-based gaming or racing businesses might still brave the daily fantasy market solo.

What’s holding DFS back in California?

The biggest problem with CA daily fantasy sports legislation is that the current gambling powers can’t agree.

The three main groups that create California’s gambling industry are card rooms, racetracks and tribes.

Card rooms are land-based venues that offer poker and player-banked table games. They’re controlled through state regulation and enjoy a degree of political power in the state.

Racetracks aren’t as popular as they used to be. Still, California is one of the biggest states for horseracing, and the tracks boast powerful political connections.

The tribes collectively own almost 70 casinos throughout the state. They head an $8 billion California casino industry and hold the most power in the gambling sector.

Tribal interests are more than happy with the status quo. They’re not entirely opposed to new forms of gambling, but they also don’t want to give anything up to the tracks, card rooms, or outsiders.

Californians are already using unregulated DFS sites. The tribes seem fine with this as long as the other main groups aren’t benefiting.

Tribal casinos are mostly unhappy with a large number of card rooms in the state. They don’t want to agree with any form of gaming – DFS or other – that could potentially give their rivals a boost.

Games to expect if California legalizes DFS

The Golden State would feature the same types of DFS contests found in other regulated markets, e.g., Massachusetts, NewYork and Virginia.

Common game types found in these states include 50/50, double up, head-to-head and guaranteed tournaments.

Here’s a brief explanation of each:

  • 50/50: Exactly half of the field wins an equal prize.
  • Double up: Winners receive double their entry fee.
  • Guaranteed tournaments: Players compete for a prize pool, with around 10-15% of the field cashing.
  • Head-to-head: Match between two opponents.

The main difference between 50/50 and double-up contests is that the latter doesn’t pay half the field; it only pays double the entry fee.

DFS sites typically take out a 10% fee from buy-ins. Therefore, only around 45% of the field can cash because winners receive double their entry.

Guaranteed tourneys can feature huge prize pools worth millions of dollars. These events are the most popular in daily fantasy sports.

Leagues covered by California DFS

Although DFS doesn’t cover the broad range of markets that sports betting does, most sites feature various leagues.

The average daily fantasy site offers contests based on the MLB, NBA, NFL and NHL. Some of the larger operators also cover men’s college basketball and football.

The available leagues and sports will depend on the season. In the winter, for example, you’ll find NBA and NHL contests on offer.

How to use CA DFS sites

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Assuming DFS becomes a reality in California, many sites should open in the aftermath. If you’re not familiar with DFS sites, you can use the following steps to get started.

Browse a prospective site

You don’t want to sign up and deposit at any site blindly. Instead, you should first look over one or more DFS operations to ensure that they offer what you need.

Aspects to consider during this vetting process include navigation, available markets, promotions and banking options. The goal is to make sure that any site you like meets all of your criteria.

If you’re a big NHL fan, for example, you want to choose an operator that offers lots of hockey contests. If bonuses excite you, you may want to find a site that features plenty of promotions.

You can also read reviews on daily fantasy sites for a second opinion on whether a site is worth considering.

Register for an account

After finding a quality DFS site in California, you’ll need to register for an account to get started. You’ll be asked to click on the signup button on an operator’s homepage to bring up an account form.

The form will request specific details, such as your name, address, email, birthdate, and username and password. You’ll also be asked to agree to the site’s general terms and conditions (T&Cs).

You will submit your account for approval after filling everything out and agreeing to the T&Cs. Your account should be approved as long as you’re at least 21 years old and inside California state lines.

Make a deposit

The next step to playing in real-money DFS contests involves making a deposit.

Hopefully, you followed the first step and browsed the site’s banking options to ensure that it offers one you can use.

Bank transfers, credit cards, debit cards, e-wallets and prepaid cards are all commonly available at daily fantasy sites. Assuming DFS sites partner with land-based operators, you should also be able to make deposits in-person, aka, cash at the cage.

The banking method you use will affect how quickly your funds arrive. Credit and debit cards offer instant funding.

Enter daily fantasy sports contests

Visit a California DFS site’s lobby to look for contests to enter. These lobbies feature filters that help you sort games.

You will be able to enter any contest that’s within your budget. Also, you will have the option to change your mind and back out of any event, provided the athletes associated with it haven’t started playing their games for the day.

Daily fantasy sports allow you to create multiple entries in any multiplayer contest. For example, you can submit entries in a large, guaranteed tournament.

DraftKings is one of the biggest names in the industry when it comes to daily fantasy sports (DFS) as well as sports betting. In fact, it was the firstsportsbook app in the US to take bets beyond the borders of Nevada.

While sports betting has yet to be legalized in California, DraftKings’ operations in other legalized markets has proven highly successful. It also provides a positive preview of what’s to come from a potential DraftKings Sportsbook operating in California.

DraftKings Sportsbook in California

Fantasy sports giant DraftKings partnered with Caesars Entertainment– another big name in the world of gambling– in 2019. The focus of the partnership was access to new markets and new databases for both companies. Caesars gained access to the DraftKings marketing database, which included roughly 10 million email addresses, that it could now market its offerings to.

DraftKings, on the other hand, could get market access in states where Caesars owned/managed a brick-and-mortar property, in order to help the sportsbook expand into new markets. This includes California, since Caesars operates Harrah’s Southern California.

DraftKings is already an established brand in California with its many daily fantasy sports games. As the gambling laws continue to change across the country, DraftKings will mostly likely run a sportsbook in the Golden State, too.

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DraftKings CA Bonus Code

DraftKings has been operating online sportbooks in multiple states for some time. Taking a look at what they offer in one of their live markets can give us an idea of what they might offer in California.

Currently, new enrollees at DraftKings New Jersey receive a welcome offer up to $1,050 upon making their first bet.

This includes an exclusive offer, of up to a $50free bet offer with deposit, and a first-deposit match of 20% up to $1,000.

DraftKings Sportsbook in California will probably offer a similar initial-bet bonus.

DraftKings Sportsbook app in California

DraftKings’ sportsbook app has won the hearts of many bettors across the US. Its software is extremely quick, which allows transactions and geolocation to happen almost instantaneously.

The app also features quick links to popular sports, sports on the schedule happening at the moment, a comprehensive list of every sport and event on which you can wager, and connections to your account.

You can also get a brief scouting report on each matchup as well as the direction the point spread or odds have been moving.

Sports selection at DraftKings Sportsbook

One of the first things that a sportsbook must figure out is the different sports that it will offer. This partially depends on the individual state’s regulations. For example, some states have restrictions on events like college football. However, DraftKings offers most major sports in its jurisdictions:

  • Basketball: With the Lakers last decade and the Warriors this decade, it seems the NBA title always runs through California. There’s also a college program in Los Angeles that boasts its share of titles. Basketball is an obvious offering for DraftKings in the Golden State.
  • Hockey: Ever since the Los Angeles Kings won the Stanley Cup in 2012 and 2014, hockey popularity surged in California. Hockey is a great sport to gamble on, and it will likely be available at DraftKings CA.
  • Baseball: California is home to five Major League teams – far more than any other state. Baseball is also the original fantasy sport, which makes it a natural for a new DraftKings sportsbook.
  • Football: Football is the biggest sport in fantasy and the most popular one to bet on at DraftKings’ existing sportsbooks. There’s nothing like putting money into a game that also features your top fantasy players.
  • Golf: If America were to have a national golf course, it would be Pebble Beach. With the return of Tiger Woods and sportsbooks seeing increased interest in golf betting, it’s likely to be offered by DraftKings in the Golden State.
  • MMA: Previous DraftKings ventures have provided a full slate of MMA and UFC betting options. Considering these sports’ massive popularity in California, the sportsbook in the Golden State is likely to follow suit.

Additional sports and leagues

DraftKings likely will allow California customers to bet on cricket, darts, cycling, motor racing, tennis, soccer, rugby, Aussie rules football and more. If you’re a fan of wagering on some of the less popular worldwide sports, DraftKings will probably have you covered.

Bets you can place at DraftKings Sportsbook

Along with sports to bet on, every great sportsbook must offer a variety of wagering options. DraftKings does exactly that at its current sportsbooks, and California players can look forward to the same.

  • Point spread: The point spread bet is the most common of team bets, the bread and butter of both the sportsbook and sports gambler. Spread betting takes into account the margin of victory/loss for a team.
  • Moneyline: A straight win/loss bet with no points. Instead of a point spread, each team receives odds on whether they are the favorite or the underdog. DraftKings has also been known to give moneyline bonuses, making this type of bet even more attractive. Moneyline bets are all but certain to be available at a California sportsbook.
  • Over/Under: Another basic single game bet is the over/under, also known as a totals bet. The bookmaker sets a line for the combined total points scored by both teams, and the bettor chooses to bet either over or under that line. You can expect totals bets to be on the menu once the sportsbook hits the California market.
  • Parlay: Parlays take multiple event bets and combine them into one single wager, payable if all the bets hit. This gives a much higher chance of a losing bet, but with a bigger payoff for a win. DraftKings will undoubtedly offer parlays in the Golden State.
  • Prop bets: Bets inside a sporting event are known as proposition bets. Which team will score first? How many touchdowns will a certain wide receiver score? These bets are fun to make but not a solid plan to make money. When Super Bowl Sunday rolls around, the fun of prop bets hits its zenith.

Other bet types

DraftKings is also set to offer California customers futuresbets (wagers on events yet to take place, like a World Series), teasers (which allow players to shift point spreads in their favor), and in-play wagering.

In-play wagering involves placing bets on events that are already in progress. These bets come with changing odds, second chance multipliers, halftime totals, and many possible in-game buyouts as the event progresses.

DraftKings Sportsbook promotions and incentives

Sportsbooks offer customers promotions and incentives because the playing field is competitive – and they want your business. New sportsbooks in a state are deep in the promotions business as they don’t yet boast an established customer base, and it is a great way to gain new customers. This is a great benefit to the customer.

Standard promotions

Along with the welcome offer that DraftKings consistently offers its new customers, regular odds boosts on moneyline bets should also be prevalent in California. DraftKings CA is also likely to grant $25 in free bonus bets for each person you refer that opens an account, makes a deposit, and places a bet.

Seasonal promotions

The sports calendar will dictate some of the promotions that DraftKings offers its players.

The new sportsbook should offer basketballinsurance on moneyline bets. For example, you would win your bet of up to $50 even if your team loses, as long as it was the first to score 100 points.

We expect baseball moneyline insurance to work similarly. If your team scores five runs but loses, you will likely receive a credit of up to $25. Each insurance type will likely require you to opt-in when placing the bet.

As the calendar changes, so will these promotions.

DraftKings Sportsbook software

DraftKings’ partnership with Caesars isn’t the only big-name connection helping the company build its sportsbook brand.

DraftKings originally struck a multiyear deal with Kambi to provide its gaming and platform technology. However, in 2020, the company announced it would be leaving Kambi for SBTech.

SBTech provides sports betting solutions and management services to their worldwide partners.

DraftKings Sportsbook rewards program

DraftKings launched their “Daily Rewards” program a few years ago, which includes different status tiers. Based on your volume of play, you are placed into a certain level of the rewards program.

Draftkings Sportsbook California

More tournaments and higher buy-ins equate to a higher tier status. Each tier has its own set of rewards you can earn.

If you earn a status tier for any given month, you receive daily rewards the following month. Rewards include contest entries, DK Dollars and Crowns. Players have to log-in to claim the rewards.

The pros of DraftKings Sportsbook

DraftKings has been in the daily fantasy sports game for years, which puts them in tune with the betting trends that are most appealing to customers.

DraftKings has also been front and center in the many legal discussions taking place at the state level all across the country. Not only does this give the company an intimate understanding of the sports gambling laws that are being passed; it grants it the opportunity to help shape those laws.

The cons of DraftKings Sportsbook

DraftKings has fared well in new markets, but California is still up in the air. Will the laws that California eventually adopts fit the experience that DraftKings has gained with the sportsbooks it operates elsewhere in the country? California is the crown jewel of state markets. Can DraftKings separate itself from the pack of operators that are sure to flock to the state?

DraftKings has had great success so far. However, the questions above still need to be answered.

Managing your finances at DraftKings Sportsbook

One major requirement for a sportsbook is to make the moving of money in and out of your account as straightforward as possible.

At its current sportsbooks, DraftKings gives you the option to make both deposits and withdrawals on the website and through the mobile app.

Making deposits

California Draftkings Sportsbook

Security is the top priority when depositing money into an electronic account. Online bill pay is the best way to keep your account secure as your account number is never shared.

As is standard throughout the industry, you should also be able to fund your account by credit and debit card, PayPal and personal check. A check will result in a processing delay of several days.

Making withdrawals

If you use one of the electronic options, then withdrawing your money is likely to be as simple as reversing the deposit process. DraftKings should send the money back to you instantaneously. Conversely, a check in the mail always comes with processing delays.

DraftKings customer support

Finding customer service should be easy through both DraftKings’ website and app. DraftKing is set to offer California customers 24-hour support by online chat, telephone and email.

Draftkings News California

We also expect an extensive user’s guide and FAQ section that should make it easy for customers to troubleshoot most issues they might encounter.