FanDuel, DraftKings, and Others Targeted by Lawsuits
California’s daily fantasy sports (DFS) industry is facing intense legal scrutiny, as a wave of lawsuits and an official opinion from the state’s attorney general have cast doubt on the future of DFS in the state. The Almeida Law Group, leading the charge, has filed class action suits against major DFS operators including FanDuel, DraftKings, Underdog Fantasy, and PrizePicks.
The lawsuits claim that these companies are engaging in illegal gambling under the guise of fantasy sports. According to the filings, the products offered by these platforms allegedly violate California’s Unfair Competition Law and the Consumer Legal Remedies Act. Plaintiffs are seeking both financial compensation and injunctive relief for consumers who lost money through these services.
Legal Experts Say DFS Violates State Law
Legal professionals involved in the litigation argue that the DFS format offered by the defendants constitutes sports betting, which is not legal under California law. Margot Cutter, partner at Cutter Law, stated that the lawsuits are focused on consumer fairness and transparency. She argued that Californians have been unknowingly participating in illegal gambling activities.
Other attorneys involved in the suits, including Peter Silva of Tycko & Zavareei and James Bilsborrow of Weitz & Luxenberg, echoed the claim that DFS operations intentionally mislead users by presenting gambling as skill-based entertainment.
Attorney General’s Opinion Strengthens Legal Argument
California Attorney General Rob Bonta added further weight to the legal actions by issuing an opinion supporting the argument that DFS should be banned. The AG’s stance reinforces the claims made in the lawsuits and increases pressure on the targeted operators. Wesley Griffith, one of the leading attorneys in the case, described the AG’s opinion as confirmation of the central argument: DFS is gambling and, therefore, illegal under state law.
Underdog’s Attempt to Counter Fails
In a move to protect its position, Underdog Fantasy filed a preemptive lawsuit aiming to prevent the attorney general’s opinion from influencing California’s legal interpretation. The company defended DFS as a legitimate industry that provides entertainment. However, their effort failed to gain legal traction and has done little to slow the momentum of the broader legal camp
