Draftkings class action claims ‘Fantasy Sports’ contests are illegal

DraftKings class action lawsuit overview:

• Who: Three California residents filed a class action lawsuit against DraftKings Inc. 
• Why: The residents argue DraftKings falsely represents that its “Daily Fantasy Sports” contests are legal in the state of California.
• Where: The class action lawsuit was filed in California federal court.

A new class action lawsuit alleges DraftKings falsely advertises that its “Daily Fantasy Sports” contests and “Pick6” contests are legal forms of gambling in California.

Plaintiffs Brandon Moore, Zhicheng Zhen and Jonathan Smith claim DraftKings has been operating mobile gambling applications and websites within California, while falsely representing to customers and the public that its “Daily Fantasy Sports” contests and “Pick6” contests are legal forms of gambling in the state.

Moore, Zhen and Smith argue DraftKings’ gambling contests violate California law, which they claim has long prohibited commercialized gambling, and that the state’s electorate rejected two ballot initiatives to legalize sports betting in 2022

The group wants to represent a class of all residents of California who placed a bet or wager on the gambling websites while in California.

DraftKings’ falsely represents California as a legal jurisdiction, lawsuit alleges

Moore, Zhen and Smith argue the DraftKings’ contests constitute illegal lotteries and games of chance under California Penal Code Sections 319, 320, 321, 330a, and 337j.

The plaintiffs further claim the DraftKings’ contests involve “pool selling, bookmaking, or accepting or recording any bets or wagers on the result of any contest and/or any unknown or contingent event,” which is illegal under California Penal Code Section 337a.

Despite this, DraftKings’ website and mobile app list California as a “legal” jurisdiction for its contests, and that the company claims to monitor state and federal law to ensure compliance, the DraftKings class action alleges.

“DraftKings has consistently and explicitly represented to the public and its customers, including Plaintiffs and the Class (as defined below), that its operation of the Gambling Websites in California is legal,” the DraftKings class action says. 

Moore, Zhen and Smith claim DraftKings is guilty of violating California’s Unfair Competition Law and Consumer Legal Remedies Act. Plaintiffs demand a jury trial and request declaratory, injunctive, and monetary relief for themselves and all class members. 

DraftKings is already facing two additional lawsuits. One, filed in April, alleging it uses misleading ads and another, filed in May, accusing the company of preying on gambling addicts. 

Have you made a bet or wager on DraftKings in the state of California? Let us know in the comments.

The plaintiffs are represented by Wesley M. Griffith and John R. Parker Jr. of Almeida Law Group LLC.

The DraftKings class action lawsuit is Moore, et al. v. DraftKings Inc., et al., Case No. 3:25-cv-04618 in the U.S. District Court for the Northern District of California.

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