Class Action Lawsuit Against FanDuel Seeks To Recover Losses for Californians

Despite a gambling ban in California, the state still represents 10% of daily sports fantasy betting nationwide.

FanDuel faces a new class action lawsuit, alleging that it is violating California’s gambling ban by illegally promoting its fantasy sports betting games in the state.

The complaint (PDF) was filed by Gilbert Criswell on behalf of himself and other California residents in the U.S. District Court for the Northern District of California on December 5, naming FanDuel Inc., FanDuel Limited, and Flutter Entertainment PLC as defendants.

While sports gambling betting sites like FanDuel and DraftKings are only allowed to advertise and operate in states that have legalized online gambling, the companies have been accused of failing to follow state laws, despite having already profited from millions of users since federal restrictions on sports gambling were lifted in 2018.

California Sports Betting Ban

The state of California has banned gambling for more than 150 years, and rejected an attempt to legalize sports betting as recently as 2022. However, FanDuel and similar gambling sites have been accused of continuing to attempt to draw in California consumers, which Criswell and others say defies established state law.

Despite the ban, the California Business Bureau estimates that state residents spent about $200 million on Daily Fantasy Sports contests every year. The California Business Journal indicates California consumers make up 10% of daily fantasy sports betting nationwide.

While Criswell’s lawsuit against FanDuel alleges that the company is illegally operating in California, it comes amid a growing number of gambling addiction lawsuits now being pursued by users in states where the company is allowed to operate. Many of these complaints allege that FanDuel, DraftKings and similar sites target vulnerable users and exploit individuals showing clear signs of compulsive behavior.

Criswell’s lawsuit indicates FanDuel has operated in California since 2015 through its websites and FanDuel mobile apps, with FanDuel Fantasy currently being offered to state residents, claiming it is legal in the state. The lawsuit argues that it is not, and misleads California residents.

The complaint states that Criswell began seeing advertisements for FanDuel on television several years ago and created an account after commercials showed California as an approved state for FanDuel operations. According to Criswell, he had no reason not to believe them.

“If FanDuel had honestly and accurately disclosed the unlawful nature of its gambling operations in California, Plaintiff would not have created an account with FanDuel in California and would not have placed bets while in California through FanDuel’s Gambling Websites.”

– Gilbert Criswell v. Fanduel Inc. et al

The lawsuit notes that because the company was operating illegally in California, neither Criswell nor other California residents ever signed or agreed to a contract with FanDuel, since such contracts should be considered illegal, invalid and not subject to arbitration. Criswell accuses the company of acting with malice, oppression and fraud.

Criswell presents claims FanDuel is violating California’s Unfair Competition Law, California’s Legal Remedies Act, and seeks declaratory judgment on behalf of Criswell and the class members.

Sports Betting Lawsuits

The complaint comes as various sports betting addiction lawsuits are being filed by individuals nationwide against FanDuel, DraftKings, BetMGM and Caesars, claiming that the betting sites target college age users who were encouraged to place high-frequency bets, even after showing signs of addiction.

Some of these users continued to receive personalized incentives, and marketing offers after requesting account closures or appearing on self-exclusion lists, raising serious concerns about how platforms exploit vulnerable behavior.

If you or someone you love suffered financial harm from compulsive gambling on these apps, contact a sports gambling lawyer to see if you are eligible to recover losses and hold companies accountable for their potentially addictive design and predatory targeting practices.

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