DraftKings Faces 3 Lawsuits Over Predictions Platform as Plaintiffs Allege Illegal Sportsbook
Updated
Updated · Front Office Sports · Aug 4
DraftKings Faces 3 Lawsuits Over Predictions Platform as Plaintiffs Allege Illegal Sportsbook
3 articles · Updated · Front Office Sports · Aug 4
Summary
Three lawsuits filed in the past week accuse DraftKings Predictions of operating as an unlicensed sportsbook, including two proposed class actions in Massachusetts and a separate South Carolina case.
Plaintiffs say labeling wagers as “event contracts” or “trading” does not change the underlying activity, and one Massachusetts suit claims the company misled users into believing the platform was lawful and safe.
Named bettors reported losses ranging from more than $100 to over $1,000, and one plaintiff said he joined DraftKings’ self-exclusion program in March after losing money on the app.
South Carolina’s suit also names Polymarket and Crypto.com, seeks triple statewide consumer losses under the Statute of Anne, and could split any award between the plaintiff and local county government.
DraftKings, which launched Predictions in December in states where online sports betting remains illegal, said the app complies with the Commodity Exchange Act and that it is confident in its legal position ahead of Thursday earnings.