Lawsuit seeks to stop FanDuel from offering fantasy sports contests in California, and recover money for users who were misled into placing illegal sports bets.
A new class action lawsuit alleges that FanDuel has been illegally offering fantasy sports contests in California for years, despite the state’s ban on online sports gambling.
The complaint (PDF) was filed by Martin Beltran in the U.S. District Court for the Northern District of California on July 2, seeking class action status to pursue damages on behalf of all California users of the popular gambling site.
Although platforms like FanDuel and DraftKings are only permitted to operate in states that have legalized online sports gambling, the lawsuit claims FanDuel has been running daily fantasy sports contests in California under the guise of legality. According to the complaint, these contests are not games of skill, as FanDuel suggests, but rather disguised forms of illegal gambling that violate state law and mislead consumers.
The allegations mirror a broader wave of legal action targeting sports betting platforms nationwide. In addition to claims of illegal operations in certain states, companies like FanDuel and DraftKings are also facing a growing number of gambling addiction lawsuits, which accuse them of fueling compulsive gambling through manipulative app designs and aggressive marketing tactics.
Plaintiffs argue these practices are especially harmful to students and young adults, who are more susceptible to addiction and financial harm.
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FanDuel Class Action Lawsuit Alleges Fantasy Games Constitute Illegal Sports Gambling
