Fantasy operators face legal challenge in Massachusetts

Sudhanshu Ranjan October 23, 2024

Joseph Curran, a resident of Gloucester, a suburb of Boston, has filed a lawsuit against three major fantasy sports companies: PrizePicks, Underdog Fantasy, and Yahoo! Fantasy Sports. This case, filed in Essex Superior Court on 17 October 2023, is making waves in the fantasy sports and sports betting community due to its implications for the industry.

Overview of the lawsuit

Joseph Curran’s lawsuit targets these companies for allegedly intentionally refraining from registering with Massachusetts while offering what he considers illegal wagers. According to the complaint, these companies continued to offer prop and pick’em bets that align more with sports betting than traditional fantasy games.

Curran’s complaint targets three well-known fantasy companies. PrizePicks and Underdog Fantasy allegedly offered pick’em-style bets, where players bet against the house. Although they had agreed to exit Massachusetts or restrict certain offerings, they are central to Curran’s claims. Yahoo! Fantasy Sports received a cease-and-desist letter but allegedly continued to offer these bets.

Sports betting in Massachusetts was legalised in August 2022, with in-person sports betting launching in January 2023, followed by digital betting in March. This legalisation allowed regulated operators to offer wagers on game outcomes or specific events while being taxed and overseen by state authorities. Curran is asking for a complete refund of all bets made on what he claims were illegal pick’em games. This demand, if met, could have massive financial implications for the companies involved and set a legal precedent for similar cases nationwide.

Legal responses and reactions

In February 2023, the Massachusetts Attorney General’s office sent cease-and-desist letters to 10 fantasy sports companies, including Yahoo! Fantasy Sports. Although PrizePicks and Underdog Fantasy were not directly named, they agreed to exit or modify their offerings within the state. Curran’s lawsuit is not just about his personal bets. It challenges the practices of major fantasy operators and questions the legality of certain games offered under the banner of fantasy sports. If successful, the case could set a precedent that reshapes the industry across multiple states.

Currently, Massachusetts regulators have yet to provide a clear legal definition distinguishing traditional fantasy sports from pick’em or prop games. As the lawsuit proceeds, it could push the state to establish firmer regulations and guidelines. Joseph Curran has pledged to donate any settlement he receives to charity. This promise adds an ethical dimension to the case, portraying Curran not only as a plaintiff but also as someone advocating for accountability in the industry.

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