• Loading stock data...
Friday, August 29, 2025
The biggest names in sports media. All in one room. Get your ticket 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, both 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. Sports betting in general is banned in California, which is one of 11 states in which the practice 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

Michael Jordan

Texts From Michael Jordan, NASCAR Bosses Aired Out in Court: ‘I Have..

Jordan said he plans on “going down with fire” against NASCAR.
Barstool

Barstool Sues For Millions Over Failed Sponsorship Deal 

The media company says it was stiffed to the tune of $4.2 million.
Mat Ishbia

Suns, Mat Ishbia Sued by Minority Owners Looking to Open Books

The limited partners have been seeking a buyout from Ishbia.
ESPN

Disney Sues Sling TV Over $5 Day Passes Granting ESPN Access

Newly introduced short-term subscriptions spark a legal challenge.

Featured Today

‘You’re Going to Get Beat Up’: The Liberty’s All-Male Practice Squad

A select group suits up weekly to take on the defending champs.
August 24, 2025

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.
Dec 21, 2024; Austin, Texas, USA; Texas Longhorns quarterback Arch Manning (16) warms up as the Texas Longhorns prepare to play the Clemson Tigers in the first round of the College Football Playoffs at Darrell K Royal Texas Memorial Stadium.
August 23, 2025

Schools Are Hesitant to Allow PE Into Their Athletic Departments

Regardless of budget, schools don’t believe the risk is worth the reward.
Oct 2, 2024; Rosemont, IL, USA; Big Ten commissioner Tony Petitti speaks with the media during the 2024 Big Ten Women’s Basketball media day at Donald E. Stephens Convention Center.
August 22, 2025

‘Not Ready to Jump In’: Power 4 Commissioners Aren’t Sold on PE

Top leaders in college sports have yet to see a satisfactory proposal.
Saquon Barkley

NFL Warns Prediction Markets Are Sports Betting With Less Oversight

League officials say the markets “mimic” sports betting.
A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.
August 20, 2025

FanDuel Enters Prediction Markets, but With No Sports

The company is partnering with derivatives exchange CME Group.
Malik Beasley
August 22, 2025

Malik Beasley Could Still Be Charged in Gambling Probe Despite Feds Dropping..

Beasley’s lawyer is hoping his client can return to the NBA.
Sponsored

Gareth Bale on MLS vs EPL, Retirement & Buying Cardiff City

Gareth Bale shares his post-soccer business playbook.
Dec 18, 2024; Inglewood, CA, USA; UNLV Rebels defensive back Rashod Tanner (41) celebrates after defeating the California Golden Bears in the LA Bowl at SoFi Stadium.
August 20, 2025

Robinhood Reactivates Sports Contracts in NJ and NV, Sues State Regulators

The suits were filed the same day Robinhood announced new football offerings.
Jan 20, 2025; Atlanta, GA, USA; Ohio State Buckeyes running back Quinshon Judkins (1) and quarterback Will Howard (18) celebrate after a touchdown against the Notre Dame Fighting Irish during the second half the CFP National Championship college football game at Mercedes-Benz Stadium.
August 19, 2025

Robinhood to Roll Out Football Prediction Markets

The new event contracts come on the heels of Kalshi’s expanded football offerings.
August 18, 2025

Limitations on Prop Bets Supported by NBA, Players’ Union

The union is trying to combat online and in-person harassment.
Feb 9, 2025; New Orleans, LA, USA; Philadelphia Eagles quarterback Jalen Hurts (1) against the Kansas City Chiefs during Super Bowl LIX at Ceasars Superdome.
exclusive
August 18, 2025

Kalshi Adds Touchdown Props, Over/Unders Amid Legal Uncertainty

The company is not cowed by its legal challenges.