Massachusetts Fantasy Sports Lawsuit Targets PrizePicks, Underdog Fantasy, and Yahoo!

23.10.2024

A legal battle is unfolding in Massachusetts as Gloucester resident Joseph Curran has filed a lawsuit against three major fantasy sports companies—PrizePicks, Underdog Fantasy, and Yahoo! Fantasy Sports.

Legal Grey Area: Betting vs. Fantasy Sports

Curran claims these companies have been engaging in illegal betting activities by offering wagers without proper state registration, blurring the lines between fantasy sports and traditional sports betting.

The lawsuit, filed on October 17 in Essex Superior Court, seeks refunds for Curran’s wagers and raises important questions about the regulation of emerging fantasy sports formats.

Massachusetts allows traditional fantasy sports where participants compete against each other, but newer formats—such as pick’em or prop betting—are coming under scrutiny.

Curran’s lawsuit argues that these offerings resemble sports betting, as they involve betting against the house, which requires a state-issued license. According to the complaint, these companies have reportedly generated over $10 million a month from such wagers, which Curran alleges are illegal under state law.

Regulatory Confusion and Industry Response

Curran’s lawsuit contends that PrizePicks, Underdog Fantasy, and Yahoo! have not met the state’s legal requirements for accepting bets of this nature. While other states have moved to ban specific types of fantasy prop contests, Massachusetts has yet to take decisive action, though the state’s attorney general did send cease-and-desist letters to some operators earlier this year.

This lawsuit is the latest in a string of legal challenges surrounding the fantasy sports landscape. Curran, who is seeking refunds for his own wagers, has stated that if he wins, he will donate any settlement proceeds to charity.