FanDuel Accused Of Misleading Californians About Legality Of Fantasy Sports Contests

Case Overview: A new FanDuel class action alleges its fantasy sports contests operate as illegal gambling while being advertised as lawful under state law.

Consumers Affected: California residents who entered paid fantasy sports contests on FanDuel.

Court: U.S. District Court for the Northern District of California

Sports betting company FanDuel misleads California consumers into believing its daily fantasy sports contests were legal, players allege, when state law allegedly prohibits them. 

In a new lawsuit, users claim FanDuel has operated mobile apps and websites in California for nearly a decade while repeatedly representing that its fantasy contests complied with state gambling laws, despite California’s long-standing ban on most forms of commercial gambling.

FanDuel Fantasy, the company’s daily fantasy sports product, is marketed as having contests as lawful fantasy games, even though they allegedly function like traditional sports betting and violate California criminal statutes. 

The lawsuit argues that FanDuel’s representations induced Californians to place bets they otherwise would have avoided.

California Player Says He Was Misled By Ads And Maps Indicating Legality

Gilbert Criswell, a Contra Costa County resident who says he signed up for FanDuel after seeing television, online, and email ads portraying the platform as legal in California, filed the lawsuit. 

Criswell alleges FanDuel ads included maps showing California as an approved jurisdiction, reinforcing the idea that betting through the app was permitted.

Relying on that, Criswell created an account and placed bets on sports including football and baseball while physically located in California, he says. He argues that he would never have joined the platform or wagered money had FanDuel disclosed that its operations were allegedly unlawful under state law. 

Over time, Criswell lost money using the app and later stopped gambling on FanDuel, but says he remains concerned the company could continue misleading Californians.

Lawsuit Claims Daily Fantasy Format Crosses The Line Into Wagering

A sharp distinction between traditional fantasy sports and FanDuel’s daily fantasy contests is made by Criswell. Traditional fantasy leagues, he argues, typically involve small groups of friends competing over an entire season, with no third party taking a cut of the entry fees.

FanDuel Fantasy, by contrast, allegedly operates as a betting system. Users pay entry fees to enter short-term contests, FanDuel pools those wagers into prize pools, determines winners based on real-world player performance, and keeps a percentage of the money, known as a rake, regardless of the outcome. 

The lawsuit provides examples showing FanDuel retaining between roughly 11% and 19% of pooled bets. According to Criswell, FanDuel also controls contest structure, entry fees, prize payouts, and participant numbers, further blurring the line between fantasy gaming and illegal wagering.

Online Gaming Platforms Face Expanding Legal Scrutiny

FanDuel allegedly spends hundreds of millions of dollars annually on advertising, including celebrity-driven Super Bowl commercials, to expand its user base, especially in California, the largest daily fantasy market in the country, the lawsuit argues. 

Once users arrive on FanDuel’s platforms, the lawsuit alleges they are repeatedly reassured the contests are lawful in California, even as the company avoids making similar claims in other states.

FanDuel isn’t alone in facing scrutiny. Other gaming platforms, including WOW Vegas, Moozi Casino, and DraftKings, are facing lawsuits accusing them of disguising illegal gambling as social or fantasy gaming. Apple and Google are also being sued for allegedly enabling unregulated gambling apps.

Criswell wants to represent all California residents who placed bets on FanDuel while in the state.

He is suing under California business and consumer protection laws, seeking court orders to stop the alleged practices, recover losses, and obtain damages, fees, and interest, arguing that Californians were tricked into betting on something the law doesn’t allow.

Case Details

• Lawsuit: Criswell v. Fanduel, Inc., et al.
• Case Number: 3:25-cv-10473 
• Court: U.S. District Court for the Northern District of California

Plaintiffs' Attorneys

• Margot Cutter and Charlie B. Stevens (Cutter Law P.C.)
• Wesley M. Griffith, David A. McGee, and Christopher Nienhaus (Almeida Law Group LLC)
• Katherine M. Aizpuru and Robert M. Devling (Tycko & Zavareei LLP)
• James Bisborrow and Michael Piggins (Weitz & Luxenberg PC)

If an app advertises betting as legal in your state, should users still be responsible for checking the law? Share your thoughts below.