Class Action Lawsuit Against Fantasy Sports Platforms for Illegal Gambling in California
For years, companies such as Underdog Fantasy, DraftKings, and others have been operating online gambling applications and websites targeting California consumers, falsely representing that their daily fantasy sports contests, such as “Pick’ems” and “Drafts,” are legal. However, our investigation has found that those and many other online gambling providers violate the California Penal Code and the California Civil Code. As a result, there is class action lawsuit to put an end to these unlawful practices and recover the money taken from consumers who were misled into participating in illegal gambling activities.
Key Takeaways
- Illegal Gambling: Platforms like Underdog Fantasy, DraftKings, and PrizePicks operate illegal gambling in California.
- Misleading Consumers: Consumers were misled into believing services were legal.
- Financial Losses: Plaintiffs lost money due to unlawful gambling practices.
- Lack of Protection: No recourse for consumers to recover their losses.
- Lawsuit Goals: Stop illegal operations and recover lost funds.
Why Are People Filing Lawsuits Against Fantasy Sports Platforms?
The lawsuit aims to stop the illegal gambling that occurs on fantasy sports websites and mobile apps within California. Despite California’s long-standing ban on commercialized gambling, platforms like Underdog Fantasy and others have continued to solicit California residents to participate in daily fantasy sports (DFS) contests. These platforms, which make millions in entry fees annually, have been misleading consumers into believing these services are legal when they are, in fact, violating California gambling laws.
Illegal Gambling Practices
Underdog Fantasy, DraftKings, PrizePicks, and other fantasy sports platforms have been actively soliciting California residents to participate in daily fantasy sports (DFS) contests that operate as illegal gambling under state law. These platforms advertise heavily through TV commercials, social media, and other digital marketing, presenting their services as legal and legitimate. However, they are engaging in activities that fall under the definition of illegal gambling in California.
Lack of Consumer Protection
Despite knowing— or at the very least should have known—about the illegal nature of their operations, fantasy sports platforms such as DraftKings, Underdog Fantasy, and PrizePicks have continued to operate in California without proper legal oversight or consumer protection. These companies have been knowingly profiting from consumers who, driven by extensive advertising campaigns, believed they were participating in a legal, skill-based activity.
Loss of Money
The plaintiffs in this class action lawsuit have faced significant financial losses because of the defendants’ illegal practices. These platforms have knowingly or recklessly engaged in operations that violate California’s gambling laws, encouraging residents to pay entry fees and participate in contests that are based on the chance performance of athletes. Many consumers were lured in by advertising, believing that their participation was legal, and subsequently lost money.
Who Is Eligible for the Class Action Lawsuit?
If you are a California resident who has participated in paid DFS contests on platforms like DraftKings, Underdog Fantasy, or PrizePicks, you may have been affected by these unlawful practices. Many people signed up after being misled by advertisements on Instagram and TV, believing that these services were legal. If you have lost money to these platforms, you may be entitled to compensation.
How Can You Get Involved?
Cutter Law is here to help. Our team is actively involved in the class action lawsuit, and we can guide you through the process to ensure you get the compensation you deserve.
If you’ve lost money or were misled into participating in illegal fantasy sports gambling, contact us today to learn more about how to join the class action lawsuit.
Why Is Fantasy Sports Gambling Illegal in California?
California has prohibited commercialized gambling for over 150 years, with strict laws that regulate gambling operations. Daily fantasy sports (DFS) betting, which has rapidly grown in the state, operates in a legal grey area. These platforms charge entry fees for contests where the outcomes are determined largely by the performance of athletes, making them more akin to games of chance. California law requires these gambling operations to be licensed and regulated, and these platforms are not compliant.
- Illegal Operations: DFS platforms like Underdog Fantasy, DraftKings, and others have been operating illegally in California.
- Misleading Marketing: Companies have been advertising their services through TV and Instagram, targeting consumers with the belief that these platforms are legal.
- Financial Impact: DFS platforms generate approximately $200 million in entry fees annually from California residents, taking money from consumers based on false representations.
Contact Us Today to Learn More About Your Legal Options
Don’t let these companies get away with illegal gambling practices. Reach out to Cutter Law now to learn how we can help you recover your funds and stop the unlawful operations of these platforms in California.
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