On July 29, 2026, a federal judge denied the Commodity Futures Trading Commission’s (CFTC) request for a preliminary injunction to block Wisconsin from implementing state...
A class action lawsuit filed in Massachusetts has accused DraftKings of offering illegal sports betting by disguising its prediction market products as event contracts.
Filed on July 28, 2028, in the U.S. District Court for the District of Massachusetts on behalf of California resident Michael Chan, the lawsuit argues that DraftKings misled its users into thinking that its sports contracts are lawful. The plaintiff has further stated that he registered on the DraftKings Predictions app without knowing that it was allegedly an unlicensed sportsbook.
The lawsuit states:
“DraftKings’ sports ‘predictions’ are sports bets masquerading as event contracts. By branding the product as ‘trading’ rather than betting, DraftKings misleads consumers into believing the activity is lawful and safe.”
The filings additionally claim that DraftKings Predictions offers sports bets that are identical to the bets offered in its regulated online betting platform. As cited in the lawsuit, 70% of DraftKings Predictions’ sports event contracts come from U.S. states where sports betting is illegal.
A DraftKings spokesperson responded:
“DraftKings’ prediction markets offering operates in accordance with applicable law and the federal regulatory framework established under the Commodity Exchange Act. We remain confident in our legal position.”
The lawsuit is seeking reimbursement of damages on behalf of players from multiple states, including California, Florida, Georgia, Alabama, Minnesota, and Texas.
