DFS Giants Face Class Action Lawsuits in California

Four major daily fantasy sports (DFS) platforms—FanDuel, DraftKings, PrizePicks, and Underdog Fantasy—are now facing class action lawsuits in California. The suits were filed on July 3, just before the state’s Attorney General released an official legal opinion stating that DFS contests are illegal under California law.

Good to know

• California’s Attorney General says DFS violates state gambling laws.
• Lawsuits seek restitution and injunctive relief for California-based users.
• FanDuel, DraftKings, PrizePicks, and Underdog Fantasy are named in the cases.

The California Attorney General’s Office of Legal Opinions stated that “California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located.” That view aligns with what the lawsuits claim: that these platforms are running unlawful sports betting operations disguised as fantasy sports.

Filed in federal court, the lawsuits represent California residents who entered DFS contests while located in the state. The plaintiffs are seeking both financial restitution and an injunction to halt what they call illegal business practices.

Lead attorney Wesley Griffith said, “We’re glad to see the California Attorney General stepping in to confirm the core theory of our cases—daily fantasy sports are gambling, plain and simple. And gambling is illegal in California. No one is above the law.”

The lawsuits cite several state laws, including California’s Penal Code, Unfair Competition Law, and the Consumer Legal Remedies Act. They also demand the return of funds lost by users who participated in DFS contests while physically located in the state.

Meanwhile, DFS operators have been bracing for legal pressure. On July 1, Underdog Fantasy filed a lawsuit against Attorney General Rob Bonta and the California Department of Justice, arguing that his opinion could seriously damage an industry they say serves “millions of Californians.”

Underdog’s case did not gain traction. Just one day later, on July 2, Sacramento County Superior Court Judge Jennifer Rockwell denied the company’s attempt to block the opinion, stating Underdog had “ample time” to raise objections earlier.

Adding to the legal shake-up, California lawmakers also introduced a bill on June 23 targeting sweepstakes casino operators, aiming to prohibit their activity in the state.