Fantasy sports make up a significant portion of the United States’ virtual entertainment industry. Millions of players participate in popular leagues across fantasy basketball, football, soccer, baseball, and hockey. For the longest time, DFS has been legal by virtue of not being expressly illegal. However, with several states pushing to tighten gambling regulations, DFS is receiving more scrutiny than it ever has.
This article unpacks some of the most crucial legislative changes that could reshape the fantasy sports industry, as well as other factors influencing the fantasy sports market.
Other factors are redefining the future of fantasy sports in the US
Before getting into the legal side of things, it’s crucial to note that technology and bonuses play a huge part in this sector’s evolution. With artificial intelligence becoming the order of the day, operators have begun curating experiences to suit the needs of players. And in states like New York, where pick-em contests are banned, peer-to-peer fantasy sports have taken over with AI pairing users with similar skills and promoting fairness.
Fantasy sports is also becoming more appealing to players across multiple US states due to the promos featured on sites offering this service. There are plenty of these offers available nowadays, but the bonuses you’ll find on sportytrader.com will provide the best experience when you try out a new site. With bonuses, you have more funds with which to bet and win.
The latest legislative changes within the DFS landscape
The opinion on DFS appears to be a mixed bag, with some lawmakers pushing for its regulation and expansion, and others for its ban. The latest development comes from the Golden State, where Attorney General Rob Bonta declared apps offering daily fantasy sports illegal.
Rob’s opinion came to light on July 3rd, 2025, citing that the DFS events organized by operators like DraftKings, FanDuel, Underdog Fantasy, and PrizePicks qualified as sports betting, making them illegal within the state. According to the AG, the next step is enforcing a law that restricts all DFS-related activities. New York, for instance, has already banned pick’em style DFS contests, but California’s move is a more drastic measure.
Besides California, Illinois is another state actively seeking to adjust its DFS rulebook. Back in February, Senator Bill Cunningham filed SB2145. This bill stipulates that DFS platforms are “sufficiently similar” to regular sports betting sites and should be taxed similarly. SB2145 also defines the term “fantasy” as a contest between two players, meaning no stroke of luck is involved, and removes the option for fantasy against the house.
Earlier, Illinois Senator Lakesia Collins had proposed a more progressive bill, SB1224, which authorizes peer-to-peer and against-the-house DFS contests and lower tax rates on DFS events. But since a similar bill was thrown out back in 2024, many think that SB1224 might not go past review. While these two opposing bills are still under consideration, pick-em style DFS operators are under pressure to exit the state.
A push to expand fantasy sports regulations similar to Senator Collins’ efforts is also underway in Maryland, where Sen. Jim Rosapepe and Sen. Paul D. Corderman have introduced Senate Bill 470 and House Bill 484.
Despite the less-than-favorable DFS laws taking hold in some states, the future of fantasy sports is not bleak. There’s a lot of backing for its expansion and proper regulation across the US. And with technology and bonuses leading the charge to attract and retain players, the fantasy sports market will likely continue to be profitable in the years to come.

Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.