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A federal judge indicated this week that a class action challenging DraftKings’ paid daily fantasy sports in California is likely to move forward, a development that could eventually tee up a request to block the contests in the state.
According to Courthouse News, U.S. District Judge Charles Breyer said the two plaintiffs likely have standing and suggested the games at issue are prohibited by California law. The suit was filed in June 2025 by DraftKings users Zhicheng Zhen and Jonathan Smith, who allege the company misrepresented that its paid daily fantasy sports contests were legal in California.
DraftKings argued the plaintiffs suffered no economic injury because they received the contests they paid to enter. But Breyer questioned that position during the hearing, saying a consumer may be injured if they would not have spent money absent an alleged misrepresentation about legality. He also pointed to DraftKings’ marketing around legality in California, asking why the company would spend heavily on that message if it were not material to consumers.
The judge’s comments matter because they go to whether the case can proceed under California consumer-protection laws. Breyer said claims under the California Consumer Legal Remedies Act and Unfair Competition Law would likely survive the motion to dismiss. He was less persuaded by the plaintiffs’ RICO and stolen property claims.
The dispute comes against the backdrop of a July 2025 opinion from California Attorney General Rob Bonta stating that state law prohibits daily fantasy sports games involving players physically located in California. That opinion is advisory rather than binding, but it has become a central point in litigation over fantasy contests in the state.
For California players, the immediate takeaway is that DraftKings’ fantasy contests are not being shut down by this hearing alone. The next key step is the court’s ruling on the motion to dismiss, which Breyer said was likely within a week. If the claims survive and standing is formally found, the judge said he would then consider a preliminary injunction that could seek to stop the games in California while the case continues.
DraftKings disputes that its contests are unlawful in the state.
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Source: As reported by Margaret Attridge.
