DraftKings faces nationwide class action over Predictions platform legality dispute intensifies
DraftKings is facing a proposed nationwide class action accusing the company of running an illegal online sports betting business through its DraftKings Predictions platform in states where traditional online sportsbooks are still prohibited. The complaint, filed July 28 in the U.S. District Court for the District of Massachusetts and reviewed by ReadWrite, names DraftKings Inc. and subsidiary GUS III LLC, which operates as DraftKings Predictions. Plaintiffs argue the company presented sports wagers as federally regulated event contracts to sidestep state gambling laws while leading customers to believe the product was legally distinct from conventional sportsbooks. California resident Michael Chan brought the lawsuit on behalf of himself and a proposed class of consumers who allegedly lost money using DraftKings Predictions. According to the complaint, Chan registered for the platform while in California and “was not informed by DraftKings that Predictions is an unlicensed sportsbook when he wagered and lost money on the app.” The filing argues DraftKings relies on its established sportsbook brand, technology and customer base to market what plaintiffs describe as the functional equivalent …









