Whatnot Faces Claims Over Randomized Pool Card Games

Whatnot, a fast-growing platform that sold more than 76 million sports cards last year, is facing arbitration demands filed by a group of customers. 

They claim that the company has been running what they describe as an illegal gambling operation dressed in collectible marketplace clothing.

Box and Repack Breaks Cross the Line 

At the center of the dispute are “box breaks” and “repack breaks,” which are popular formats that enable buyers to pay for a chance to receive cards from a randomized pool. 

According to the official claims formulated by the discontent customers, the respective formats are crossing the line from collecting to gambling. 

Their arguments include randomness, mixed with the promise of potentially valuable returns, which creates an experience that feels like placing a bet and not shopping for collectibles. 

Attorney Paul Lesko, who is representing 30 clients, has filed 15 separate arbitration demands. All cases allege that Whatnot’s sales methods violate California laws banning illegal lotteries, with repack breaks resembling so-called “grab bag” lotteries, whose outcomes are determined by mere chance rather than transparent value.

Whatnot is also accused of operating an “unregulated online casino” while lacking the necessary oversight required for gambling platforms. 

$8B in Sales 

That accusation lands at a time when the company is experiencing an explosive boom, with $8 billion in reported sales last year, and more than 20 million new users joining the platform. 

Their most lucrative sales category is represented by sports cards, with millions sold each month.

As expected, Whatnot has pushed back strongly against the claims, explaining that gambling is not allowed on its platform and that it has taken all measures to “strictly enforce this policy.”

At the same time, the company spoke about the longevity of card break formats that are common occurrences “at card shops, conventions, and in communities that have thrived for generations.”

Whatnot went on to say that, despite sellers who ‘break’ only representing 4% of sellers on their website, they have “taken care to bring that experience online in a way that holds everyone accountable.”

“It Is 100% Pure Gambling”

Jason Masherah, president of Upper Deck, did not hold back: “The way the repacks are being done right now is purely gambling, and it’s going to be an issue for our industry.”

“It is 100% pure gambling the way it’s being done right now, and something bad is going to happen at some point,” Masherah added. 

A judge is expected to decide soon whether the arbitration cases can move forward. 

The outcome could shape how platforms like Whatnot operate, and whether stricter rules are needed in a hobby that increasingly blurs the line between collecting and chance.