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A proposed class action filed in federal court in Massachusetts is seeking refunds for Californians who spent money on DraftKings Predictions, a product the complaint says functioned as unlicensed sports betting in states where DraftKings did not have sportsbook authorization.
The suit, Gordon v. DraftKings, Inc. (1:26cv13525), names DraftKings, Inc. and alleges the company, through its subsidiary GUS III, LLC d/b/a DraftKings Predictions, offered wagers disguised as “event contracts.” The complaint seeks restitution or disgorgement, attorney fees, injunctive relief, and an accounting.
California claims focus on alleged unlawful wagering
According to the complaint, the proposed California class would cover “all persons in California who spent money by wagering on DraftKings Prediction’s mobile or web platforms.” The pleading also seeks to represent a broader multi-state class spanning 16 states, including California and Texas.
The lawsuit alleges users selected game outcomes, risked money on those outcomes, and either received a payout if correct or lost their funds if wrong. It argues that, under California law, that activity amounts to unlawful gambling rather than lawful trading or prediction-market activity.
The complaint cites California’s Gambling Control Act and Unfair Competition Law, and alleges violations of Business & Professions Code §19801(d) as well as Penal Code §§330 and 337. One cited provision says that “no person in this state has a right to operate a gambling enterprise except as may be expressly permitted by the laws of this state.”
Named California plaintiff alleges losses and misleading representations
One of the named plaintiffs is Johnny Harris, a California resident. According to the complaint, Harris opened an account around March 2026, placed several dozen bets, and lost more than $100 plus transaction fees.
The suit alleges California consumers were misled into believing DraftKings Predictions was lawful in the state. It says Harris relied on representations that users were “trading” or “predicting” rather than wagering, and that he would not have deposited funds and placed bets had the truth been disclosed.
What California players should watch next
At this stage, these are allegations in a newly filed complaint, not court findings. Key next steps include whether DraftKings responds with a motion to dismiss and whether the court will certify either the proposed California class or the broader multi-state class.
For California players, the case could become a test of how courts treat sports-related “event contracts” when they resemble sportsbook wagers but are offered outside the state’s licensed gambling framework.
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Source: As reported by MetNews Staff Writer.
