Three daily fantasy sports (DFS) platforms in Massachusetts are facing a lawsuit for offering and accepting illegal sports bets: PrizePicks, Underdog Fantasy, and Yahoo Fantasy Sports.
PrizePicks, Underdog Fantasy, and Yahoo Fantasy Sports allegedly offered and took illegal sports bets
According to the 33-page suit, filed in the Massachusetts Superior Court, the operators generate more than $10 million per month from prop and pick ’em bets.
The plaintiff, Joseph Curran, said that while operators such as DraftKings and FanDuel are licensed to offer both DFS and sports betting in the state, the defendants can only provide the former.
Upon hearing the news, Underdog Fantasy dismissed the claims.
“It’s a completely transparent fishing attempt by a plaintiffs lawyer, and it will get dismissed sooner rather than later,” a spokesperson for the company told Front Office Sports.
“Just a press release searching for a legal theory, trying to extract a settlement. We continue to offer our product in compliance with Massachusetts law.”
Bettors have three months to join Curran in seeking to reclaim their funds.
Massachusetts Attorney General’s Office sent cease-and-desist letters to 10 DFS operators for offering pick ‘em style games
Earlier this year, the Massachusetts Attorney General’s Office sent cease-and-desist letters to 10 DFS operators for offering pick ‘em style games. Among the platforms were Yahoo Fantasy Sports, StatHero, and Parlay Play.
However, PrizePicks and Underdog Fantasy avoided formal action by voluntarily adjusting their operations.
As part of the agreement with state regulators, PrizePicks and Underdog now only offer free-to-play or peer-to-peer games in the Bay State. Peer-to-peer means participants compete against one another instead of the house.
PrizePicks now offers its Pick ‘Em Arena game in just 12 states. In April, the company launched the product in Florida after receiving a cease-and-desist letter from the Florida Gaming Control Commission (FGCC) for violating regulations.
Earlier this month, the Massachusetts Attorney General’s Office also issued a cease-and-desist letter to Harp Media B.V. and Hove Media, collectively known as Bovada, for operating a sports betting and gambling website without a license.
Bovada, an offshore sportsbook and iGaming platform, did not have a license issued by the Massachusetts Gaming Commission. This violated state gaming and sports betting laws.
Additionally, the letter claimed Bovada was in violation of state consumer protection laws under Chapter 93A. The illegal operator held itself out to Massachusetts residents as a “USA-based” gambling operator.