Fanduel Lawsuit Over Misleading Sports Betting Games Withdrawn Voluntarily

Lawyers entered into a tolling agreement, giving the plaintiff the right to refile the lawsuit against Fanduel in the future, involving claims that the platform operates illegal sports betting games in California.

FanDuel has temporarily dodged a class action lawsuit alleging the company violated California’s ban on online sports gambling.

Platforms like FanDuel and DraftKings are only permitted to operate in states that have legalized online sports gambling. However, in July, Martin Beltran filed a FanDuel class action lawsuit, alleging that the company’s daily fantasy sports contests were pitched as games of skill when they should be classified as online gambling.  

Beltran noted that state lawmakers rejected a 2022 proposal to legalize sports betting in California, despite heavy lobbying by FanDuel. However, the complaint claimed FanDuel continued to promote daily fantasy sports contests to California consumers, violating the state ban.

The allegations come amid a broader wave of litigation aimed at sports betting platforms nationwide. In addition to claims of illegal operations in certain states, companies like FanDuel and DraftKings also face a growing number of gambling addiction lawsuits, each raising similar claims that the sites are designed to encourage compulsive gambling through manipulative app designs and aggressive marketing tactics.

The FanDuel lawsuit filed by Beltran sought compensation for all California residents who placed a bet on the company’s website. It accused the company of violating California’s Unfair Competition Law, California’s Consumer Legal Remedies Act, and called for a declaratory judgment on the plaintiffs’ behalf.

However, according to a Notice of Voluntary Dismissal (PDF) issued on September 8, Beltran has temporarily withdrawn the lawsuit.

According to the notice, FanDuel has agreed to let the claim be withdrawn without prejudice, meaning it could be refiled in the future. The parties also reached a tolling agreement, which means that Beltran would be allowed to file the lawsuit again even after the usual statute of limitations would have run out.

This is often a sign of the parties attempting to reach a settlement agreement, leaving the option for the plaintiff to file the case again if no out-of-court resolution can be reached, but neither party has stated why the lawsuit was withdrawn.

FanDuel and DraftKings Gambling Addiction Lawsuits

Beltran’s class action differed from most recent lawsuits against FanDuel and DraftKings, which have primarily centered on allegations that the companies intentionally foster sports betting addictions in consumers through the use of aggressive marketing tactics, including misleading “risk free” promotions and features designed to encourage frequent gambling.

The growing number of plaintiffs argue that companies like DraftKings have prioritized profits over consumer protection, using real-time data to identify and retain users who have shown signs of compulsive behavior. Rather than offering support or safeguards, these platforms allegedly target inexperienced users with personalized promotions, loyalty perks and psychological triggers that normalize betting while masking its financial consequences.

Amid the growing evidence linking sports betting platforms to rising rates of addiction and financial harm, lawyers are now reviewing sports betting addiction lawsuits for individuals between the ages of 18 and 25, who developed gambling addictions and lost $10,000 or more after using sports betting apps like DraftKings, FanDuel, BetMGM and Caesars. 

These claims focus on college age users who were encouraged to place high-frequency bets, even after showing signs of addiction. Some 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 betting lawyer to see if you are eligible to recover losses and hold companies accountable for their addictive design and predatory targeting practices.