A San Francisco resident filed a class-action lawsuit Friday against FanDuel Inc. and its parent companies, alleging the sports betting platform has operated illegal daily fantasy sports contests in California since at least 2015.
Gilbert Criswell filed the complaint in the US District Court for the Northern District of California, claiming FanDuel collected approximately $200 million in entry fees from California residents while misrepresenting that its services were legal in the state.
The lawsuit alleges FanDuel violated multiple California Penal Code sections that prohibit unlicensed gambling operations, including laws against pool selling, bookmaking and accepting wagers on sporting events. California voters rejected online sports betting legalization in 2022, with 82% voting against a ballot measure that would have authorized such activity.
Sponsored · Nord Precious Metals
“FanDuel intentionally and strategically leads—in fact, misleads—consumers into believing that its operation of the Gambling Websites in California is legal,” the complaint states. “It is not.”
California Attorney General Rob Bonta issued a formal opinion in July declaring that daily fantasy sports platforms operate illegally in the state under Penal Code Section 337a, regardless of where operators are based. The opinion concluded that such contests constitute illegal sports wagering.
Criswell seeks to represent all California residents who placed bets on FanDuel’s platform while physically located in the state. The lawsuit requests monetary relief, including restitution of all amounts paid to FanDuel, injunctive relief to halt operations, and attorneys’ fees.
The complaint names FanDuel Inc., FanDuel Limited, and Flutter Entertainment PLC as defendants. According to the filing, neither FanDuel Limited nor Flutter Entertainment PLC appears registered with the California Secretary of State.
Sponsored · Granada Gold Mine
The lawsuit also alleges violations of California’s Unfair Competition Law and Consumer Legal Remedies Act, claiming FanDuel used extensive advertising campaigns featuring celebrity endorsers and promotional offers to attract California customers while assuring them the service was legal.
Martin Beltran voluntarily dismissed a similar class-action lawsuit in September without prejudice, allowing him to refile the case. He filed the earlier lawsuit in July, and the parties entered into a tolling agreement.
Related: Kalshi Faces Class Action Lawsuit Over Alleged Illegal Sports Betting
California is one of 11 states that prohibit sports wagering. The state represents approximately 10% of the daily fantasy sports industry’s revenue, with over 6 million California residents participating in fantasy sports contests last year, according to estimates cited in the complaint.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
