FanDuel Class Action in California Withdrawn but Might Come Back

In July, California resident Martin Beltran launched a class action claiming FanDuel’s contests amounted to gambling rather than skill-based gamesImage Source: Shutterstock.com

A legal fight over FanDuel’s daily fantasy sports contests in Californiahas stopped for now after the plaintiff chose to drop the case, but the lawsuit could start up again.

Experts Guess Settlement Talks After California Player Drops FanDuel Class Action

Martin Beltran, who lives in California, started the class action in July. He said FanDuelwas running contests that should count as gambling, not games of skill. Because California does not allow online sports betting, Beltranclaimed the company was breaking the law by operating in the state.

FanDuel, a part of Flutter Entertainment, has provided daily fantasy sports (DFS) in Californiasince 2015. The legal action claimed breaches of California’s Unfair Competition Law, the Consumer Legal Remedies Act, and the state’s criminal code, which bans wagering on events with unpredictable outcomes. The case also aimed to recover money for California residents who had used funds on the platform.

On September 8, Beltransubmitted a Notice of Voluntary Dismissalto the federal court. The agreement they reached resulted in the case being dropped without prejudice, which means it can be brought back in the future. Additionally, both sides signed a tolling agreement, which gives them more time to re-file beyond the normal deadline. These kinds of arrangements often hint that they might be talking about a settlement, though neither side has said they are negotiating.

FanDuel Dodges Legal Fight but California’s Position Endangers Its Fantasy Games

The fight breaks out as Californiangakes a tough stand on sports betting. Voters said noto a 2022votethat would have made it legal, even though FanDueland other big names spent a lot to push for it. This year, California officials also said DFS is illegal betting, making things harder for companies that depend on these contests.

Beltran’s lawsuitis different from many recent cases against big sportsbooks. Those focus on issues like gambling addiction and misleading ads. Instead, his case looks at whether DFSis legal under California law. By zeroing in on breaking the law, the case asks bigger questions about whether FanDueland similar companies can keep offering these services in the state.

Tribal operatorsplay a big role in shaping California’s gaming scene. They have exclusive rights to run casinos and hold a lot of sway in Sacramento. People who watch the industry say that DFSor online sportsbook companies will have a tough time growing in the Golden State without the tribes’ support.

For now, FanDuel hasdodged a long court fight, but its DFSbusiness in Californiastill faces legal questions. If talks to settle fail, Beltranor other people suing might bring their claims back to court. This leaves the company’s future in the state up in the air.