Underdog Fantasy Class Action Lawsuit: "Pick'em" Contests Illegal?

Case Overview: A class action lawsuit claims Underdog Fantasy misled consumers by operating an illegal sports betting platform through its "Pick'em" contests.

Who's Affected: Consumers in the U.S. who participated in Underdog Fantasy's "Pick'em" contests.

Court: U.S. District Court for the Eastern District of New York

Underdog Fantasy is under fire from app users who are accusing the company of running an illegal sports betting operation under the guise of a fantasy sports platform. 

In a new lawsuit, filed by four gamers, the company is accused of misleading users into gambling without the proper licensing, violating state laws and profiting unfairly at their expense.

Underdog Fantasy Accused of Illegal Sports Betting

The proposed class action lawsuit was filed by Brian Ballentine, JeanClaude Lominy, Lauren Wolf, and Isaac Roth, who all say they unknowingly participated in illegal gambling through Underdog Fantasy’s app. 

Hailing from New York, Texas, and California, the plaintiffs claim they signed up believing they were engaging in fantasy sports contests. Instead, they allege, they were effectively betting against the house, with Underdog setting the odds and collecting wagers just like a traditional sportsbook.

Ballentine says in the lawsuit that he placed more than 150 entries in Underdog’s "Pick’em" games without realizing he was engaging in unlicensed gambling. The plaintiffs argue they were never properly informed about the nature of Underdog’s operations and believed they had much better odds of winning than they actually did.

"Pick'em" Contests Mislead Consumers, Lawsuit Alleges

Traditional fantasy sports involve assembling a team of real-world athletes and competing against others based on their statistical performances. Underdog Fantasy, however, offers "Pick’em" contests where users predict individual player performances rather than managing an imaginary team. The lawsuit alleges that this structure is not fantasy sports but outright sports betting because players are wagering on real-world outcomes against pre-set odds, much like a sportsbook.

The lawsuit further alleges that Underdog entices users with bonuses and promotions while failing to disclose the true nature of its operations. The company, it claims, exploits consumers by creating misleading payout odds and operating without regulatory oversight.

Crackdown on Fantasy Sports and Sports Betting Loopholes

Underdog Fantasy isn’t the only company facing legal scrutiny. Several states, including Florida and Massachusetts, have recently classified similar "fantasy" offerings as illegal sports betting. In New York, where strict gambling laws apply, authorities have been particularly aggressive in monitoring daily fantasy sports and sports betting platforms.

Meanwhile, rival sports betting giant DraftKings is also facing legal challenges. One lawsuit alleges that DraftKings misled users with a “risk-free” bet promotion that actually caused them to lose their own money. Another lawsuit claims the company designed a $1,000 sign-up bonus to deceive customers into gambling more than they intended.

In their lawsuit against Underdog Fantasy, the plaintiffs want to represent anyone in the US who lost money by wagering in Pick’em style betting on mobile platforms provided by Underdog. They are suing for violations of New York business law and unjust enrichment, and are seeking damages, injunctive relief, costs, fees, and interest.

Case Details

• Lawsuit: Ballentine, et al. v. Underdog Sports, LLC D/B/A/ Underdog Fantasy
• Case Number: 1:25-cv-01106
• Court: U.S. District Court for the Eastern District of New York

Plaintiffs' Attorneys

• David S. Stellings, Wilson M. Dunlavey, and Jacob S. Miller (Lieff Cabraser Heimann & Bernstein, LLP)

Have you participated in Underdog Fantasy's 'Pick'em' contests? Share your thoughts on this lawsuit in the comments below.