DFS Operators Face Illegal Betting Lawsuit in Massachusetts

Massachusetts residents have access to plenty of betting opportunities. Many of our best sports betting sites are online there, numerous Daily Fantasy Sports (DFS) operators are available, and there are plenty of brick-and-mortar casinos to choose from. However, it seems that some of those DFS lawsuits might be in hot water.

Three DFS operators – PrizePicks, Underdog Fantasy, and Yahoo Fantasy Sports – face a lawsuit for illegal wagering in the Massachusetts sports betting market. A has revealed that Joseph Curran from Gloucester filed the case in Massachusetts Superior Court on Oct. 17.

According to the 33-page lawsuit, while these operators were authorized to offer fantasy sports in the states, they were not permitted to offer sports betting. In contrast, platforms FanDuel and DraftKings are legally authorized to offer both.

Curran seeks to hold the companies accountable for their “willful disregard of Massachusetts law” by recovering money placed on prop and pick ‘em bets with these platforms, estimated at more than $10 million per month. State law allows other bettors to join Curran’s suit within three months, after which any remaining funds recovered will be donated to charity.

Nationwide crackdown on DFS operators

Massachusetts isn’t the only state taking action against DFS operators. States like Florida, New York, and Wyoming have also cracked down on pick'em games and prop bets, which often blur the line between fantasy sports and traditional sports betting.

Following orders from the Florida Gaming Control Commission (FGCC) to cease operations, PrizePicks and Underdog Fantasy later returned to the state under a new peer-to-peer format. These contests allow customers to compete with each other rather than against the house. The “Pick 'Em Arena” peer-to-peer product is now also available in Alabama, Alaska, Arizona, Kansas, Kentucky, Massachusetts, New Hampshire, Oregon, Tennesee, West Virginia, and Wyoming.

In February, the Massachusetts Gaming Commission (MGC) sent cease-and-desist letters to ten DFS brands operating pick ‘em games in the state, including Yahoo, Vivid Picks, StatHero, Splash Sports, Sleeper, Real Time Fantasy Sports, Parlay Play, OwnersBox, Chalkboard Fantasy Sports, and Boom Fantasy.

Underdog and PrizePicks did not receive a letter as neither offered pick ‘em games, but in March, the companies voluntarily agreed that they would not offer such bets. Instead, the two operators conform by offering free-to-play or peer-to-peer games.

What are prop bets?

Prop bets are wagers on individual players or specific events during a game, not directly related to the final outcome. For example, bettors can wager on whether a player will score a goal, the number of points a player will score, or how far the player may throw the ball. Bettors can also link multiple prop bets to form a parlay, offering larger payouts if all bets are correct.

If that type of bet sounds interesting, make sure to take advantage of Massachusetts sportsbook promos to make sure you're placing your bet with a regular operator.

Massachusetts sports betting laws

Massachusetts launched its legal sports betting market in January 2023 after Governor Charlie Baker signed House Bill 5164 into law in August 2022. Massachusetts bettors can wager on sports at the state’s retail sportsbooks and seven active Massachusetts sports betting apps. These options include DraftKings, FanDuel, Caesars, Fanatics, BetMGM, ESPN BET, and Bally Bet.

A bill signed by Baker in 2016 also made Massachusetts the eighth state to legalize paid-entry DFS. As of 2024, DFS games are now legal in more than 40 states