Class action lawsuits filed against sportsbook operators in California
The state’s Attorney General’s Office of Legal Opinions issued a finding on July 3 expressing DFS games of any type are prohibited by California law and in violation of the Penal Code.
Key Points
- Complaints were filed on behalf of California residents seeking monetary and injunctive relief for the supposed unlawful operation of online sports betting acting as DFS
- The lawsuits also raise claims under the state’s Unfair Competition Law and Consumer Legal Remedies Act as well as seek full restitution for the plaintiffs
Prior to the California Attorney General’s Office of Legal Opinions issuing a finding regarding its views on the legality of daily fantasy sports (DFS) operations, four class action lawsuits were filed against FanDuel, DraftKings, PrizePicks and Underdog Fantasy in state federal court on July 3.
The Office of Legal Opinions stated “California law prohibits the operation of daily fantasy sports games with players physically located within California, regardless of where the operators and associated technology are located.”
The class action complaints were filed on behalf of California residents who entered DFS contests while located in the state, seeking monetary and injunctive relief for what the plaintiffs claim is “unlawful operation of online sports betting under the guise of fantasy sports.”
“We’re glad to see the California Attorney General stepping in to confirm the core theory of our cases—daily fantasy sports are gambling, plain and simple. And gambling is illegal in California. No one is above the law,” Lead Attorney Wesley Griffith said.
The complaints cite violations of the state’s Penal Code, a measure also agreed upon by the Attorney General’s finding, raise claims under California’s Unfair Competition Law and Consumer Legal Remedies Act as well as seek full restitution of funds lost by the plaintiffs.
Good to know: California lawmakers reportedly introduced legislation that would prohibit sweepstakes casino operators from conducting business within the state on June 23
On July 2, Sacramento County Superior Court Judge Jennifer Rockwell denied Underdog Fantasy’s request to prohibit Attorney General Rob Bonta from releasing his legal opinion, stating the operator had “ample time” to raise a challenge to the proceedings.
Underdog filed a lawsuit against Bonta and the California Department of Justice on July 1, stating the Attorney General’s opinion would “poison a thriving industry that serves millions of Californians.”
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