• Loading stock data...
Wednesday, November 5, 2025
Tune in Nov. 12 at 1 p.m. ET for Future of Sports: Stadium Sophistication. Register now

Users Sue Daily Fantasy Companies After California Calls Them Illegal

Users who lost money on Underdog Sports and Boom Fantasy sued the companies.

Rob Bonta
Stockton Record

The California attorney general’s declaration that daily fantasy sports are prohibited under California state law has begun to result in legal actions from users who claim operators are responsible for the losses they suffered.

Underdog Sports and Boom Fantasy were hit with separate proposed class action lawsuits in California federal court by users who lost money on their daily fantasy sports games. The nearly identical suits allege the games constitute illegal sports betting under California law.

The same attorney is behind both suits, which were filed on behalf of different lead plaintiffs. The two suits also reference the advisory opinion issued in July by California attorney general Rob Bonta that said daily fantasy sports games are considered illegal sports betting under California law. California is one of 11 states where sports betting is still completely illegal.

According to both complaints, daily fantasy sports contests offered by the companies—including pick’em and draft-style games—are “merely a digital reincarnation of illegal sports betting.” They allege that the companies “deceive consumers” by branding themselves as fantasy sports when in reality they are using that description to “mislead regulators and consumers  into believing [they offer] harmless gameplay instead of unlawful sports betting.” The lawsuits each seek to certify classes of “hundreds, if not thousands” of consumers.

The suit against Underdog, filed Aug. 26 on behalf of lead plaintiff Sander Koning, says that Koning created an account after seeing advertisements on social media and television, and lost roughly $2,200 between September 2023 and August 2025. That suit says that Underdog never disclosed that the “true nature” of its daily fantasy sports games were actually “illegal sports bets.”

The suit against Boom Fantasy, filed Aug. 28 on behalf of lead plaintiff Steven Huynh, says he lost about $100 between March 2024 and March 2025.

The games in question resemble sports betting offerings such as prop bets and parlays, according to the lawsuits. For example, both suits note that the companies offer contests that are essentially prop bets, in which users “may be asked to predict whether Steph Curry will score more than 20 points, or whether Jimmy Butler will collect more than 7 rebounds, in a given game.”

If the companies had “honestly and accurately disclosed the unlawful nature” of their online platforms, the plaintiffs “would never have signed up,” according to the complaints.

The lawsuits signal more potential actions taken against these and other companies that offer daily fantasy sports in the state, both through other lawsuits on behalf of consumers or possible enforcement actions from the AGs office. Following Bonta’s July opinion—which Underdog unsuccessfully tried to stop from even coming out—the California Department of Justice told Front Office Sports it expected companies to “come into compliance with the law,” but that “any specific action beyond that is premature.” Bonta said in a television interview later that month that “the next step is our enforcement, and laws are meant to be enforced.” 

Daily fantasy sports operators have been under pressure since the AG’s opinion was issued. The same day the opinion was published, a group of consumer protection law firms filed four separate proposed class actions. The defendants were FanDuel, DraftKings, PrizePicks, and Underdog.

The lawyer who filed the two new lawsuits did not immediately respond to a request for comment from FOS, nor did representatives for Underdog, Boom Fantasy, and the California DOJ.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Mar 20, 2025; Lexington, KY, USA; Alabama State Hornets guard Amarr Knox (1) shoots the ball against Auburn Tigers forward Johni Broome (4) during the second half in the first round of the NCAA Tournament at Rupp Arena.

NCAA and Federal Gambling Probes Loom Over Men’s College Basketball Season

Some schools have not yet been publicly named, the NCAA told FOS.
Dana White

UFC Cuts Fighter After Suspicious Betting Activity

Caesars Sportsbook said it would issue refunds for losing bets.
Fanduel

How The Legal Sports Betting Giants Fit In NBA Betting Scandal

Four sports betting companies were listed in the indictment.

Featured Today

Oct 11, 2025; University Park, Pennsylvania, USA; Penn State Nittany Lions head coach James Franklin stands on the field following the game against the Northwestern Wildcats at Beaver Stadium

College Football’s Coach Buyout Bonanza: All Your Questions Answered

Schools owe their fired coaches millions in buyouts—and it isn’t over.
Oct 13, 2024; Chicago, IL, USA; Susanna Sullivan of the United States of America finishes seventh in the Chicago Marathon at Grant Park
October 31, 2025

More Races, More Money: The New Calculus for Pro Marathoners

More races per year mean more money—but the math isn’t simple.
Oct 28, 2025; Los Angeles, California, USA; Los Angeles Dodgers two-way player Shohei Ohtani (17) pitches during the fifth inning against the Toronto Blue Jays during game four of the 2025 MLB World Series at Dodger Stadium.
October 31, 2025

Shohei Ohtani Card Market Is Surging—With No Signs of Slowing

Cards have spiked hundreds of thousands of dollars from their initial value.
September 21, 2025; Santa Clara, California, USA; NFL commissioner Roger Goodell before the game between the San Francisco 49ers and the Arizona Cardinals at Levi's Stadium
October 26, 2025

NFL Fall Meeting: 7 Big Topics Among Team Owners 

Media, facilities, and labor highlight some of the key areas of concern.
Saint Francis guard Skylar Wicks (8) shoots a 3-pointer in the first half during an NCAA Men’s basketball game between the Oklahoma Sooners and the Saint Francis Red Flash at Lloyd Noble Center in Norman, Okla., on Monday, Nov. 3, 2025.

NCAA Pushes Kalshi to Clarify They Are Not Partners

The organization also wants Kalshi to commit to integrity protocols.
Donald Trump Jr. imitates President Donald Trumps as he speaks during a memorial service honoring Charlie Kirk at State Farm Stadium in Glendale on Sept. 21, 2025.
October 28, 2025

The Trumps Are All In on Prediction Markets

Truth Social is launching a platform that will offer sports event contracts.
Apr 1, 2025; Atlanta, Georgia, USA; Portland Trail Blazers head coach Chauncey Billups talks to forward Toumani Camara (33) during the game against the Atlanta Hawks during the second half at State Farm Arena.
October 31, 2025

Why the NBA Betting Scandal Was Inevitable—and What Comes Next

Betting issues will exist “at all levels for the foreseeable future.”
Sponsored

How HOKA is Reimagining the NIL Relationship

On Location is redefining the Olympic experience by creating lasting connections beyond the Games.
October 27, 2025

Turkish Soccer Says It Has Widespread Ref Gambling Problem

The scandal involves hundreds of professional soccer referees.
Mar 5, 2025; Boston, Massachusetts, USA; The NBA logo is seen on the court before thegame between the Boston Celtics and the Portland Trail Blazers at TD Garden.
October 23, 2025

The History of Hoops Betting Scandals

The arrests of Rozier and Billups are just the latest scandal involving basketball.
October 23, 2025

Terry Rozier, Chauncey Billups Arrested in FBI Gambling Probes

The Billups arrest was tied to an illegal Mafia poker operation.
draftkings
exclusive
October 22, 2025

DraftKings Is Paying Up to $250M for Prediction-Market Railbird

The deal was announced Tuesday, but financials weren’t disclosed.