The funding round, the company’s second after raising $2 million in 2023, was spearheaded by LeBron James and Maverick Carter‘s LRMR Ventures, as well as Jason Stein’s SC Holdings.

Matthew Berry has been widely recognized as a pioneer in fantasy sports writing since the early 2000s.

He served as ESPN’s Senior Fantasy Sports Analyst from 2007 to 2022. Berry left ESPN for NBC when the former didn’t allow him to co-own Fantasy Life. He now hosts NBC’s Football Night in America.

In a press release, Berry shared his excitement for the company’s growth:

“My entire adult life has been about helping fantasy players… Fantasy Life is the culmination of my decades of experience — a destination for every kind of player… We’re building a platform as obsessed with fantasy as we are… I can’t wait for everyone to check out the new features and win more titles.”

Star-Studded Support Fuels Rapid Growth

In addition to LeBron James, Maverick Carter, and Jason Stein, notable new investors include:

• Eberg Capital LLC, a private equity firm founded by Roger Ehrenberg, co-owner of the Miami Marlins and Alpine Formula One Racing
• Bolt Ventures, the family office of David Blitzer, co-founder of Harris Blitzer Sports & Entertainment
• Gerry Cardinale, Founder and Managing Partner of RedBird Capital
• Jeff Shell, Partner and Chairman of Sports and Entertainment, RedBird Capital Partners
• Chad Hurley, Co-Founder of YouTube
• Wasserman Ventures, the investment arm of global sports, music, entertainment, and culture company Wasserman
• Tony Khan, Owner of the Jacksonville Jaguars, Fulham Football Club, All Elite Wrestling, and TruMedia Networks
• SUM Ventures, founded by Garrett Gilbertson, includes NFL star George Kittle and retired Eagles Super Bowl Champion Brent Celek.
• John Legend, Emmy, Grammy, Oscar, and Tony (EGOT) Award Winning Artist
• Larry Fitzgerald Jr., Co-Founder of Trenches Capital and former NFL wide receiver
• Donald Mustard, Co-Creator of Fortnite and former Chief Creative Officer at Epic Games

Existing Fantasy Life investors include NFL stars Josh Allen, Joe Burrow, Ja’Marr Chase, and Austin Ekeler.

The support has helped Fantasy Life to grow at a rapid pace. Since launching in 2022, the platform’s revenue has increased by 737%. That includes a 230% jump from 2024 to the first half of 2025.

Reimagining Fantasy: Guillotine Leagues and Fantasy HQ

With the extra investment, Fantasy Life is expanding its innovative product offerings. The company acquired the Guillotine Leagues platform about a year ago and has since integrated it into its own platform.

Thanks in part to the new funding, the company unveiled a revamped version of Guillotine Leagues, including a fully redesigned app to enhance the player experience.

Guillotine Leagues is a high-stakes, elimination-style fantasy football format. Each contest starts with 4-18 teams, and each week, the lowest-scoring team is eliminated (guillotined).

After elimination, the team’s entire roster is placed back into the free-agent pool. That allows others protection against potential injuries and an opportunity to strengthen their rosters. The last team that remains standing at the end of the season is crowned the champion.

Fantasy Life says the format offers “unparalleled flexibility and excitement, ensuring that every player remains engaged and competitive throughout the season.” The platform highlights that, on average, users spend 22 minutes per session, indicating their high engagement.

The company is also rolling out Fantasy HQ, presented by Mike’s Hard Lemonade. Fantasy HQ is a personalized hub for player insights, real-time data, and league tools. Key features include:

• Syncing leagues across all providers for a fully customized experience.
• Custom trade, waiver, and start/sit advice, personally tailored to each user’s team, needs, and matchups.
• Mike’s Fantasy Scoreboard: an all-in-one command center with side-by-side views of all matchups, allowing users to track multiple teams and leagues simultaneously.

DFS Crackdowns Loom: Why Timing Matters for Fantasy Life

Fantasy Life’s announcement comes at a time when the fantasy industry’s attention is focused on California, the largest market in the US.

Last week, California Attorney General Rob Bonta issued a legal opinion that daily fantasy sports (DFS) are illegal under state law.

Bonta argued that DFS contests are not skill games, a topic raised by Underdog Fantasy in a failed lawsuit against the Attorney General.

Bonta also emphasized that the decisive factor in the outcome of DFS contests is the athletes’ on-field performance, which resembles wagering on horse racing or sports betting.

Furthermore, the Attorney General notes that operators collect fees and establish prize structures that are not contingent upon the number of entrants. This, therefore, makes the contests more similar to traditional gambling products than to recreational competitions.

It’s essential to clarify that Bonta’s opinion does not render DFS illegal in California, as the courts or the legislature can ultimately decide. He also did not state his opinion on traditional season-long fantasy contests.

Still, his opinion can trigger similar responses from other states, a trend already seen with pick ‘em contests. In these formats, users predict whether an athlete will exceed or fall short of a specific performance benchmark. That has drawn criticism, with some arguing it closely resembles player prop betting in traditional sports betting.

In response, several gambling regulars, including those from Arkansas, Florida, Illinois, Michigan, Kansas, New York, and Wyoming, have taken action against these contests.

Fantasy Life does not offer these DFS bets. However, it provides expert insights, projections, and recommendation tools for Pick ’Em contests hosted by partners like Underdog Fantasy.

The heightened scrutiny of DFS in California and elsewhere underscores the shifting regulatory landscape and the importance of diversified fantasy gaming offerings such as Fantasy Life’s Guillotine Leagues and Fantasy HQ.

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Bonta’s office released its opinion on July 3. It categorizes DFS contests as illegal wagering under Penal Code section 337a. It falls foul of the code given participants pay money in exchange for a chance to win, based on the uncertain future performance of real-world athletes.

The AG emphasized that even though skill may be involved (an argument Underdog Fantasy raised in a lawsuit against Bonta), that does not exempt DFS from being considered illegal wagering.

Bonta Argues Draft-Style DFS is Not a Skill Game

In the 33-page opinion, Bonta says that draft-style DFS games violate state law. He argues that they function similarly to wagering on sports events rather than skill-based contests.

The AG draws a distinction between draft-style DFS and traditional season-long fantasy leagues. In both, users select a team of real-world athletes in upcoming sporting events. But, unlike season-long contests, draft-style DFS contests are decided by each athlete’s performance in a single game.

In draft-style DFS, participants select athletes using various methods, which may involve skill. Still, they do not compete in or influence sports events. Their success depends entirely on outcomes beyond their control, much like sports betting.

The AG emphasizes that the decisive factor remains the athletes’ on-field performance, which resembles wagering on horse racing or sports betting.

Furthermore, Bonta points out that operators collect fees and set prize structures that do not depend on the number of entrants. That makes the contests more similar to traditional gambling products than to recreational competitions.

Bonta concludes that under Penal Code section 337a, which prohibits betting on sports contest outcomes, draft-style DFS falls under the definition of illegal gambling in California.

All Pick’ Em DFS Deemed Illegal

Bonta also addresses Pick ‘Em-style DFS contests, which have surged in popularity but have attracted intense scrutiny.

In these contests, users select two to six athletes and predict whether each will exceed or fall short of a specific performance benchmark. An example is whether Steph Curry will score five threes in a game.

Bonta concludes that Pick’ Em contests are essentially proposition (or props) bets available at traditional sportsbooks. As with draft-style DFS, the AG concludes that Pick’ Em DFS is illegal wagering in California.

“As with many traditional sportsbook bets, pick ’em players place a bilateral wager against the game operator. The player and operator each ‘promise[] to give money…upon the determination of an uncertain or unascertained event’ (the sports competitions) being resolved ‘in a particular way'”

Bonta says his opinion falls in line with other state regulators, including in Arizona, Florida, Virginia, and Wyoming. These states have declared that Pick’ Em DFS is a form of parlay or props betting.

Furthermore, the California Attorney General addresses peer-to-peer Pick’ Em formats. Many operators, including recently PrizePicks in California, have adopted these newer contests to sidestep legal challenges and regulatory scrutiny.

In peer-to-peer contests, users play against each other. The odds and payouts are determined by each user’s performance relative to the other players in the pool.

However, Bonta’s opinion makes it clear that these contests are also illegal wagering, because players risk money on the outcomes of third-party sports performances.

Season-Long Fantasy Contests Not Addressed

Notably, Bonta did not address traditional, season-long fantasy sports contests as the request that prompted his opinion specifically asked for a decision on DFS.

Still, the AG emphasized the difference between DFS and season-long fantasy numerous times. The latter is often played among friends and small groups for entertainment, involving low or no financial stakes.

While Bonta does not explicitly address season-long fantasy contests, some legal experts believe his reasoning could extend to them in the future. According to Adjunct McGeorge School of Law Professor Chris Micheli, based on his DFS opinion, Bonta “would find the same way for the seasonal [fantasy contests].”

Governor and Operators Disagree

Shortly after Bonta released the opinion, according to his office, Gov. Gavin Newsom disagreed with it:

“The Attorney General, in his independent capacity, issued this opinion — not the Governor’s office,” noted Izzy Gardon, a spokesman for Gov. Newsom.

“While the Governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”

J.T. Foley, Executive Director of the Coalition for Fantasy Sports, said the coalition agrees with the governor. He emphasized that the opinion does not change the law:

“The law has not changed, a fact the last two Attorneys General, Kamala Harris and Xavier Becerra, recognized as they specifically declined any similar action. We are hopeful the Attorney General heeds the Governor’s call to find a constructive solution that preserves the games that California sports fans love.”

The Coalition for Fantasy Sports represents companies like Underdog Fantasy, PrizePicks, Betr, Dabble Fantasy, and Splash Sports.

Is DFS Now Illegal in California?

Despite the strong language in Bonta’s opinion, Attorney General opinions do not alter the law. They act as an advisory interpretation of the law, intended to guide enforcement agencies and lawmakers.

In the court rejection of Underdog Fantasy’s lawsuit attempting to block the opinion, Sacramento County Superior Court Judge Jennifer Rockwell emphasized this as well:

“Further, the Attorney General’s issuance of an opinion of pursuant to Government Code section 12519 does not effect any change in the law,” citing case law stating that “the opinions of the California Attorney General are advisory only and do not carry the weight of law.”

For DFS to become illegal, the legislature or courts would need to act. That means a court ruling or an explicit statutory change. Still, legal experts, including Micheli, note that California courts traditionally grant “a fair amount of deference” to the Attorney General’s legal opinions.

Bottom Line: Daily fantasy sports contests are not yet illegal in California. Still, the Attorney General’s opinion increases the legal risk and sets the stage for potential enforcement or legislative action.

The post California Attorney General Declares DFS Illegal: What It Means for Fantasy Sports Fans appeared first on CasinoBeats.

While Bonta’s office has not confirmed this, Sacramento news outlet KCRA 3 reports that multiple sources have confirmed that a formal opinion should arrive within days.

A potential ban could force operators such as DraftKings, FanDuel, PrizePicks, and Underdog Fantasy to withdraw from the nation’s largest market, jeopardizing hundreds of millions in annual handle.

Bonta Was Asked For a Legal Opinion

A decision by Bonta stems from a request by lawmakers and tribal gaming leaders. They argue that DFS is unregulated gambling and undermines tribal exclusivity, following voters’ rejection of sports betting in 2022.

Earlier this week, the California Nations of Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nationals sent a letter to California lawmakers, warning them that DFS operators might be working to push legislation regarding their legal status in the state.

McGeorge School of Law adjunct professor Chris Micheli feels that if Bonta believes that DFS operators violate the Penal Code, he would file a lawsuit to enforce his interpretation of the law.

The courts will ultimately decide the matter. Still, Micheli notes that California courts traditionally grant “a fair amount of deference” to the Attorney General’s legal opinions.

Tribal leaders have welcomed the news of a potential ban. In contrast, the Coalition for Fantasy Sports stated that the opinion would be devastating to millions of Californians who enjoy playing fantasy sports.

It is expected that the California Department of Justice will release the opinion by July 3rd.

Several States Have Questioned Pick-’Em DFS

California is far from alone. Several other states have already taken action against one of the fastest-growing DFS formats: pick ’em contests.

These contests, available at platforms like PrizePicks and Underdog Fantasy, allow users to predict individual player stats. For example, whether an NBA player will have more than five rebounds in a game.

Critics claim that this type of DFS contest closely resembles player prop bets available at regulated sportsbooks, classifying it as illegal gambling.

States that have cracked down on pick ’em DFS include:

• Arkansas: In 2024, the state’s gambling regulator deemed that the contests violated gambling laws.
• Florida: In 2023, the state sent cease-and-desist letters to operators deeming pick ’em contests illegal.
• Illinois: In April this year, the gambling regulator sent cease-and-desist letters to operators.
• Michigan: Passed a law in 2023 banning pick ’em DFS contests.
• Kansas: Sent cease-and-desist letters in 2024.
• New York: In 2023, it adopted regulations to ban DFS contests that mimic sports betting.
• Wyoming: In 2023, it warned operators of felony and multi-million dollar charges.

In addition to these states, Colorado lawmakers are debating whether the contests are legal. The actions by the state gambling regulators have forced platforms to stop offering the controversial contests in these jurisdictions.

Despite the challenges, DFS operators have begun adapting to the scrutiny by adjusting their products. That includes the introduction of peer-to-peer props or parimutuel-style contests.

Last month, Underdog Fantasy relaunched draft-style DFS in New York after reaching a $17.5 million settlement with the state.

Cardrooms and Sweepstakes Casinos Are Also Under Threat in CA

Daily fantasy sports aren’t the only target. California is also moving against two other gaming sectors that have long operated in legal gray areas: cardrooms and sweepstakes casinos.

Recently, Bonta proposed changes to the state’s gaming laws governing cardrooms. Those include changes to rules concerning third-party dealers, known as Third-Party Proposition Player Services (TPPPS), and restrictions on blackjack-style games.

Cardrooms and native tribes have long clashed as the tribes have exclusivity over gambling in the state, but California gave a compromise to the cardrooms through TPPPS.

By using a third-party dealer, cardrooms technically do not offer banked games (where players play against the house), which are exclusive to native tribes. The tribes, however, argue that the cardrooms offer illegal gambling.

Bonta’s changes include that only seated players can act as TPPPS, and they must rotate. He also proposes changes that essentially ban the game of blackjack. His proposals have met significant backlash from city officials, business owners, and the general public.

Meanwhile, a proposal to ban sweepstakes casinos in California surfaced earlier this week. In addition to prohibiting the platforms, the proposed legislation makes it illegal to promote sweepstakes casinos. That could get several celebrities in hot water.

They include Drake, who has a deal with Stake.us, Paris Hilton, who promotes WOW Vegas, Ryan Seacrest, who endorses Chumba Casino, as well as John Daly, who has been featured in Modo’s social media posts and promotions.

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