FanDuel Class Action in California Withdrawn but Might Come Back

A legal fight over FanDuel’s daily fantasy sports contests in California has 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 FanDuel was running contests that should count as gambling, not games of skill. Because California does not allow online sports betting, Beltran claimed the company was breaking the law by operating in the state.

FanDuel, a part of Flutter Entertainment, has provided daily fantasy sports (DFS) in California since 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, Beltran submitted a Notice of Voluntary Dismissal to 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 California takes a tough stand on sports betting. Voters said no to a 2022 vote that would have made it legal, even though FanDuel and 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 lawsuit is different from many recent cases against big sportsbooks. Those focus on issues like gambling addiction and misleading ads. Instead, his case looks at whether DFS is legal under California law. By zeroing in on breaking the law, the case asks bigger questions about whether FanDuel and similar companies can keep offering these services in the state.

Tribal operators play 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 DFS or online sportsbook companies will have a tough time growing in the Golden State without the tribes’ support.

For now, FanDuel has dodged a long court fight, but its DFS business in California still faces legal questions. If talks to settle fail, Beltran or other people suing might bring their claims back to court. This leaves the company’s future in the state up in the air.