Fantasy Sports Lawsuit | File a Claim to Recover Losses [2026 Update]

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Fantasy sports platforms are facing lawsuits for allegedly using misleading marketing strategies to attract and retain players and encourage them to gamble more than they intended. Additionally, fantasy sports apps are accused of being deceptive about which contests are legal in each state, allegedly leading users to participate in contests that violate state gambling laws.

Some people who have lost money on daily fantasy sports (DFS) bets are suing fantasy sports apps, attempting to recover some of their losses and hold fantasy sports app companies accountable.

This page provides updates on the fantasy sports betting lawsuits, information about why fantasy sports betting companies are being sued, and who qualifies for compensation. This page also explains why fantasy sports may be addictive, what companies are being sued, and how affected consumers can file for compensation.

About the Fantasy Sports Betting Lawsuits:

Fantasy Sports Betting Lawsuit News and Updates

July 2, 2025: Class Action Lawsuit in California Claims FanDuel’s Fantasy Sports Are Illegal Gambling

A man has filed a lawsuit against FanDuel for allegedly operating an illegal gambling company in California. California law bans games of chance and gambling. According to a June 2025 opinion filed by California’s attorney general, some of FanDuel’s daily fantasy sports contests are games of chance rather than games of skill. The man filed the lawsuit in California, claiming that FanDuel misled him into thinking some of FanDuel’s contests were legal in California when they were not.

June 1, 2025: Californians Sue DraftKings, Alleging the Company’s Daily Fantasy Sports Are Illegal Gambling

DraftKings is named in a class action lawsuit filed by California consumers who say the company misled them into thinking its daily fantasy sports and other offerings are legal. The consumers claim that some of DraftKings’ contests constitute illegal gambling under California law, and they do not think DraftKings was transparent about this.

April 2025: Five People Sue DraftKings in Pennsylvania Over Deceptive Promotions and Exploitative Advertising

Five people have filed a lawsuit against DraftKings in the Pennsylvania federal court. They are accusing the company of failing to honor users’ requests to be removed from the app and to stop receiving notifications or advertisements. The complaint also accuses DraftKings of targeting users who are on gambling self-exclusion lists. The people filing the lawsuit allege that DraftKings’ Casino Deposit Match Promotion and some of its other promotions are deceptive. The legal complaint alleges that users gambled more than they intended due to these and other app-related factors.

November 19, 2025: Man Sues DraftKings Over Its Deceptive Casino Deposit Match Promotion

In an opinion issued by U.S. District Judge Stanley Chesler, some of the allegations in a DraftKings class action lawsuit will move forward. On January 7, 2025, a man sued DraftKings over its allegedly deceptive and misleading contests and Casino Deposit Match Promotion. He filed his case as a class action lawsuit in New Jersey. The lawsuit claims that DraftKings misleads users by advertising “risk-free” or “no-sweat” bets that lead them to believe they will at least get something of equal value if they participate. However, according to the complaint, these contests allegedly pay out bonus bets, DK dollars, and other in-app credits that cannot be exchanged for money or are worth far less than what was paid in. The complaint claimed some of these credits must be bet within a short amount of time, or the user loses them. The people filing the lawsuits say they were not aware of these terms, and they gambled more than they intended to because of it.

December 8, 2023: Class Action Filed Against DraftKings for Allegedly Deceptive $1,000 Sign Up Bonus

A class action lawsuit was filed against DraftKings with the Superior Court of Massachusetts, alleging that the company misled customers about its $1,000 sign-up bonus. According to the legal complaint, DraftKings’ advertisement made some consumers believe that they could receive a bonus of up to $1,000 if they signed up for the platform. In reality, the complaint claims, new DraftKings customers would need to deposit about $5,000 in upfront funds on the site, place about $25,000 in bets within 90 days, and meet other requirements. The complaint alleges that customers may not receive the $1,000 bonus even if they meet these requirements, and these restrictions may not have been made clear to all consumers.

February 4, 2016: Fantasy Sports Lawsuits Against DraftKings and FanDuel Consolidated in Federal Court

Earlier litigation involving daily fantasy sports companies was consolidated in federal court in 2016 when fantasy sports claims against DraftKings and FanDuel were consolidated into a multidistrict litigation. These lawsuits accuse these two fantasy sports companies of unfairly allowing their employees to use non-public information to place bets on competitors’ sites. The lawsuits also allege that the fantasy sports companies are operating gambling businesses in states where it is illegal. The legal complaints also claim that DraftKings and FanDuel offered misleading, deceptive, or fraudulent bonus schemes on their fantasy sports platforms.

What Is the Fantasy Sports Gambling Lawsuit About?

Fantasy sports gambling lawsuits are being filed against DraftKings, FanDuel, Underdog Fantasy, PrizePicks, and other platforms. These lawsuits accuse fantasy sports platforms of:

• Misleading users about the terms of the promotions and contests
• Advertising to people on gambling self-exclusion lists
• Voiding players’ winnings

Many of these lawsuits also claim the structure and design of the contests encourage compulsive and disordered gambling habits in some players. As a result of the losses incurred due to these tactics, players are taking legal action against betting apps. King Law is reviewing cases in a range of sports betting lawsuits.

Online sportsbook apps are popular in the United States. According to a 2025 poll conducted by Siena College Research Institute, 22% of Americans have used an account with a sportsbook app. Some of these people play daily fantasy sports (DFS).

Is There a Daily Fantasy Sports (DFS) Class Action Lawsuit?

Individual and group claims have been filed against daily fantasy sports platforms. Some group claims have been structured as class-action lawsuits, and others have been consolidated into multidistrict litigation. For example, DraftKings and FanDuel were part of a multidistrict litigation (MDL) that  accused them of misconduct in their daily fantasy sports operations in 2016. Meanwhile, class action lawsuits have been filed against fantasy sports apps in New Jersey, Pennsylvania, and California.

The MDL format allows individual plaintiffs to work together during the discovery, pre-trial, and settlement phases. The plaintiffs in an MDL can still have a trial or reach a settlement in their individual case. However, in a class action, all the people filing the lawsuit proceed as one, and they may not receive individualized trials or settlements.

Although there is not currently an MDL for consumers who lost money in fantasy sports, some people may qualify to file an individual civil lawsuit against a fantasy sports app company. Additionally, a future request could be made to the Joint Panel on Multidistrict Litigation (JPML) to centralize these individual lawsuits, therefore creating an MDL.

How Are Fantasy Sports Different From Traditional Sports Betting?

Traditional sports betting only allowed people to place bets in person or over the telephone. Bettors wagered on the outcomes of specific sporting events. In contrast, fantasy sports tend to be more interactive and share qualities of both games of chance and games of skill.

For example, fantasy sports apps require the user to put together a virtual team  of real-life professional sports players to compete in a league. In this situation, the user acts like the team’s manager. The user can “manage” the team for the entire season or create a lineup for a short period (e.g., one day or a game).

The outcome of the league or match depends on the professional sports players’ statistics and performance in real life. For example, users can win points when different events happen during the matches (like their player scoring a touchdown in a real-life football or basketball game). The users with the most points at the end of the match or season win their league and the associated payout.

Some fantasy sports platforms market themselves as “games of skill” rather than gambling (games of chance), which allegedly misleads users about what they are participating in. People can pay an entry fee (rather than a wager) to participate in the fantasy sports event or team. However, some judges have ruled that these entry fees meet the definition of a wager under some federal and state laws.

Why Are Fantasy Sports Companies Being Sued?

Fantasy sports companies are facing lawsuits accusing them of misleading consumers into believing fantasy sports games are legal, safe, and non-addictive. Some of the legal complaints also claim the companies prioritized user spending and engagement over keeping consumers safe from problematic gambling habits. Lawsuits also allege that the fantasy sports apps’ design and structure encouraged excessive and disordered play.

Addictive Game Design and Dark UI/UX

Lawsuits have alleged that fantasy sports platforms are designed to encourage excessive use and gambling. People who treat gambling addictions are concerned that easy, seamless, and rapid access to wagers may make it harder for players to keep their gambling in check. Some fantasy sports apps prompt players to buy back in right after they lose, which may increase the chance that they will keep gambling.

For example, one study published in the Journal of Gambling Studies suggested that microbetting and participating in fantasy sports  may be linked with higher rates of gambling problems.

Another study, published in the International Journal of Mental Health and Addiction, found that betting inducements (e.g., promotions and prompts to buy back in), instant deposits, and immediate access to betting on smartphones may make it harder for people to access self-control mechanisms. Another study, published in the Journal of Behavioral Addictions, found that people who play fantasy sports on their smartphones may struggle to control their impulse to gamble.

Misleading Marketing and “Skill-Based” Claims

Legal complaints claim that fantasy sports apps misled users about whether fantasy sports were gambling or games of skill. According to lawsuits, some fantasy sports companies have emphasized that fantasy sports are skill-based and require planning and control to win. The complaints allege that the fantasy sports apps downplayed the risks of users becoming addicted to the platforms. However, some studies have shown that fantasy sports constitute gambling, and participating in fantasy sports may be associated with a higher risk of gambling-related problems.

What Legal Claims Are Being Alleged in Fantasy Sports Lawsuits?

People alleging harms from playing DFS make multiple allegations in their lawsuits. Complaints filed against fantasy sport companies include:

• Allegations of illegal or unlicensed gambling: Plaintiffs argue that certain contests violate state gambling statutes. However, players were unaware that they were violating state rules when they played, because of how apps represented the contents.
• Allegations of deceptive marketing and promotions: Consumer protection laws are designed to protect consumers from fraud and misrepresentation. Lawsuits allege that some promotions, outreach, communications, and contests violate consumer protection laws. For example, terms and conditions of risk-free bets may be misleading.
• Allegations related to gambling addiction and harm: Lawsuits against DFS apps say some companies used negligent app designs. Additionally, they may target self-excluded users or have failed to properly warn players of the health and financial risks of placing numerous bets.

What Companies Are Named in Fantasy Sports Gambling Addiction Lawsuits?

Several fantasy sports companies have been named in legal actions, alleging deceptive tactics that led people to unfairly lose money. Companies named in lawsuits about Fantasy sports include:

• DraftKings
• FanDuel
• ThriveFantasy
• Underdog Fantasy
• Yahoo Fantasy

DraftKings Fantasy Sports Allegations

DraftKings has been named in several fantasy sports lawsuits, including those that accuse the platform of deceptive and misleading promotions and contests. Some complaints allege that the platform did not honor self-exclusion lists for gamblers or stop communicating with users who requested that their accounts be disabled.

People have also claimed that the way DraftKings is designed and tracks people’s betting behavior can make gambling addictions worse. In one complaint, DraftKings is being accused of allegedly operating gambling in states (like California) where it is illegal. DraftKings has also been sued for not following state laws that require a cooling-off period before a player can change a self-imposed wager limit.

FanDuel Fantasy Sports Allegations

FanDuel has faced multiple lawsuits brought by individuals and city governments. For example, the city of Baltimore sued FanDuel over its allegedly unfair, deceptive, and abusive practices that may entice people to gamble more than they intend. Baltimore’s lawsuit describes situations where players felt targeted because FanDuel did not honor their requests to remove their accounts and stop advertising to them.

Some lawsuits against FanDuel also claim that the advertisements for and terms of FanDuel’s contests are deceptive and misleading. FanDuel is also facing legal action for allegedly allowing people to gamble in California, even though gambling is illegal there.

Underdog Fantasy Sports Allegations

Underdog Fantasy (also called Underdog Sports) has faced lawsuits in several states. For example, one complaint against Underdog alleges that the company ran a gambling operation without a license to do so in New York. An opinion issued by the California Attorney General expressed that some daily fantasy sports contests (like those offered by Underdog Fantasy) constitute gambling, which is banned in California. According to the California AG, daily fantasy contests (like pick ’ems) share characteristics of “games of chance” rather than skill-based games. Underdog Fantasy asked a judge to prevent California’s attorney general from publishing this opinion, but the judge denied the request.

ThriveFantasy Fantasy Sports Allegations

ThriveFantasy does business under the trade name “Props2fantasy.com.” Legal complaints have been filed against Props2fantasy.com for preventing users from withdrawing winnings from their fantasy sports accounts to their bank accounts. One of the affected users reached out to the North Carolina attorney general’s office for help. On January 4, 2024, the North Carolina attorney general allegedly sent a letter to ThriveFantasy about this matter. However, it is unclear if ThriveFantasy ever responded.

Yahoo Fantasy Sports Allegations

Yahoo Fantasy has faced scrutiny over whether its daily fantasy sports offerings are a form of gambling or sports betting. For example, in 2024, one lawsuit was filed in Massachusetts against Yahoo Fantasy and two other companies, accusing them of operating unlicensed, illegal gambling in the state. Before sportsbetting was legal, New York’s attorney general also sent subpoenas to Yahoo Fantasy and several other fantasy sports companies to investigate whether their offerings were games of chance.

Other Daily Fantasy Sports (DFS) Companies Named in the Lawsuits

Other fantasy sports companies that may have faced legal actions include:

• BetAnySports
• PrizePicks
• ESPN Fantasy Sports
• Dream 11
• ParlayPlay
• Sleeper
• OwnersBox
• Chalkboard Fantasy
• Boom Fantasy
• Fliff Online Gambling

Daily fantasy sports is a rapidly expanding industry, and more companies may be sued in the future.

What Are the Signs of Fantasy Sports Gambling Addiction?

Someone who is addicted to fantasy sports gambling may show signs of a gambling disorder. According to the American Psychological Association, symptoms of a gambling disorder could include the following:

• The person cannot stop thinking about or planning fantasy sports lineups.
• The person is unable to cut back or stop engaging in fantasy sports even though they want to.
• The person keeps playing daily fantasy sports even though they have suffered significant financial losses.
• The person may try to hide or lie about how much they have lost in daily fantasy sports or how often they participate in it.
• The person’s relationships, work, physical or mental health, or financial well-being have suffered because of playing daily fantasy sports.
• The person uses gambling as a way to escape from or cope with stressors.

Someone with a formal diagnosis of a gambling disorder may experience other symptoms, too. In one study, titled “Daily Fantasy Sports Players: Gambling, Addiction, and Mental Health Problems,” participants who were men, were single, gambled frequently, and had experienced suicidal thoughts in the past year were more likely to have played daily fantasy sports. Another study, titled “Fantasy sports, real money: exploration of the relationship between fantasy sports participation and gambling-related problems,” noted that female college students in the study who played daily fantasy sports (versus those who did not) were more likely to develop gambling-related problems later on, even if they did not play daily fantasy sports for money.

Who Can File a Fantasy Sports Lawsuit for Gambling Addiction?

Someone may qualify to file a fantasy sports lawsuit for a gambling addiction in the following circumstances:

• They spent money playing fantasy sports when they were underage.
• They were diagnosed with a gambling disorder after they played fantasy sports.
• They suffered significant financial losses on fantasy sports apps when they were a young adult.
• They participated in fantasy sports betting in a state where it is illegal, but the fantasy sports app led them to believe it was legal.

There are other eligibility criteria that are not listed above. Moreover, fantasy sports lawsuits are in their early stages, and the eligibility criteria may change. Simply losing money in fantasy sports betting may not qualify you for a lawsuit. For these reasons, you are encouraged to ask a lawyer about whether you can file a fantasy sports lawsuit.

Do You Qualify for a Fantasy Sports Lawsuit with King Law?

If any of the following situations apply to you, you may be able to pursue legal action with King Law:

• Lost significant money
• Misled by promotions
• Unable to withdraw funds
• Underage gambling
• Diagnosed gambling disorder

Please reach out to our office to speak with an intake specialist and receive a free case evaluation.

What Damages Can I Recover in a Fantasy Sports Lawsuit for Gambling Addiction?

Someone with a gambling addiction who wins their fantasy sports lawsuit may be able to recover the following damages:

• Treatment, prescription medication, rehabilitative therapy, and other medical costs.
• Reimbursement of the financial losses associated with their fantasy sports addiction.
• Emotional distress of having a fantasy sports addiction.
• Loss of income due to having a fantasy sports gambling addiction.

The person may qualify for other forms of compensation if they can show that they are related to their fantasy sports addiction. They would also need to prove that those losses are because of someone else’s misconduct (such as the fantasy sports company).

Can I Get My Money Back From Fantasy Sports Betting?

You may be able to recover your gambling losses if you can prove that the fantasy sports company is liable for them. For example, you may qualify to get a refund if you participated in a contest that the fantasy sports provider misled you into believing was legal in your state. You may also be eligible to recoup your gambling losses if you can show that the terms of the fantasy sports contest were misleading.

However, each state has laws about what compensation can be recovered in a fantasy sports addiction lawsuit. An attorney can help you understand if you could be eligible to recover your gambling losses in your unique situation.

How to File a Fantasy Sports Lawsuit for Gambling Addiction

Here are the steps to file a fantasy sports lawsuit related to a gambling addiction:

• Contact a sports betting attorney who is taking fantasy sports lawsuits so you can schedule a free case review.
• If you are eligible, collaborate with the attorney to find evidence to support your fantasy sports addiction claim.
• Your attorney prepares and files a complaint to start your fantasy sports addiction lawsuit.
• Your legal team gathers more evidence to use to guide settlement talks in your fantasy sports case.
• Your lawyer negotiates a possible settlement to compensate you for your fantasy sports-related losses.
• If settlement discussions are unsuccessful, the attorney may take your case to trial.

Teaming up with an attorney can be helpful because they stay up to date on the latest developments in fantasy sports lawsuits. They are also familiar with the lawsuit process and can help you meet your deadlines so your rights are protected.

What Is the Deadline to File a Fantasy Sports Lawsuit?

The deadline to file a fantasy sports lawsuit depends on the applicable state or municipal laws. Additionally, states have different filing rules that change based on the type of claim the person is filing. An attorney can help you determine what the deadline is in your situation. They can also research and advocate for applicable exceptions to give you more time to file, if possible.

What Is the Estimated Settlement Amount and Payout Per Person From a Fantasy Sports Lawsuit?

The payouts for fantasy sports lawsuits depend on each person’s case, their losses, and other factors. For example, having a strong case to prove liability may help boost someone’s chance of receiving a settlement. Likewise, someone with severe, well-documented losses could be eligible for a higher compensation package. A fantasy sports attorney can help you estimate your potential settlement in your case.

Are You Addicted to Fantasy Sports Betting?

If you are addicted to fantasy sports betting, you may qualify to file a lawsuit against daily fantasy sports companies. King Law provides confidential, free case evaluations, and we do not charge any upfront legal fees to hire us. We take all fantasy sports betting lawsuits on a contingency basis, which means we only get paid if you get paid, too. We would only receive an agreed-upon percentage of your settlement if we win one for you. In some cases, you do not have to have a formal diagnosis to pursue compensation.

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