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Lawsuit Filed Against PrizePicks, Underdog, Yahoo in Massachusetts for Pick’em Games
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Underdog Sports, PrizePicks, and Yahoo Fantasy Sports are facing a lawsuit in Massachusetts for offering traditional pick’em peer-to-house games earlier this year in the commonwealth, which the plaintiff alleges were actually illegal sports bets.
Plaintiff Joseph P. Curran filed a lawsuit against the three companies in Essex County Superior Court on Thursday, Oct. 17. His counsel is seeking damages equal to triple the total amount bet on the markets by customers in the commonwealth through March.
“Mr. Curran has standing to bring this action as plaintiff under Mass. Gen. Laws ch. 137, § 1, which provides that if a person having a claim under the statute ‘does not within three months after such loss, payment or delivery, without covin or collusion, prosecute such action with effect, any other person may sue for and recover in tort treble the value thereof,'” his counsel wrote in the lawsuit.
Underdog, PrizePicks Ceased Traditional Pick’em in March
The lawsuit alleges that the offerings from Underdog Sports, PrizePicks, and Yahoo Fantasy Sports in which users played pick’em games against the house were actually unlicensed sports bets, as opposed to fantasy sports offerings.
The traditional peer-to-house pick’em games were offered by the companies through at least March 6, 2024, in the state.
Earlier this year, the Massachusetts Attorney General’s Officer sent cease-and-desist letters to 10 operators offering the games in the state. Yahoo Fantasy Sports was one of operators who received a cease-and-desist letter:
- Boom Fantasy
- OwnersBox
- Parlay Play
- Real Time Fantasy Sports
- Sleeper
- Splash Sports
- Talid Sports dba Chalkboard Fantasy Sports
- Two Nine Sports dba StatHero
- Vivid Picks
- Yahoo! Daily Fantasy Sports
However, PrizePicks and Underdog Sports did not receive a notice. Both agreed to alter their pick’em games in Massachusetts to a new peer-to-peer model.
The lawsuit levied against the operators claims they accepted illegal sport bets when offering their peer-to-house pick’em games before altering their services.
“In actuality, while Defendants may have some offerings which are considered Daily Fantasy Sports, until March 2024 (and possibly beyond), they also offered sports wagers. However, Defendants offered and accepted sports wagers in Massachusetts illegally because they were never registered in Massachusetts as entities that can accept such bets,” counsel wrote.
Jason A. Zweig of Bartko LLP, counsel for Curran, declined to comment on the lawsuit further to Saturday Down South.
In the lawsuit, Curran said he will donate any damages he receives to a charity.
Underdog Sports Speaks Out on Lawsuit
While a PrizePicks representative declined to speak to the lawsuit, and Yahoo Fantasy Sports did not return a request for comment, an Underdog Sports representative spoke out against the filed lawsuit to Saturday Down South.
According to the Underdog Sports representative, Curran has never used the platform in the commonwealth and described the lawsuit as a “transparent phishing attempt.”
“He never even played on our platform. It’s a completely transparent fishing attempt by a plaintiff’s lawyer, and it will get dismissed sooner rather than later. It’s a press release searching for a legal theory, trying to extract a settlement. We continue to offer our product in compliance with Massachusetts law,” the spokesperson said.
The lawsuit never explicitly noted that Curran used any of the parties in the document, claiming that he occasionally “engages in online betting activity through websites and apps that are legally registered to accept such wagers in Massachusetts.”
Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.
