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Legal Update

Almeida Law Group Files Opposition to DraftKings’ Motion to Dismiss in California Gambling Litigation

September 25, 2025 — Almeida Law Group, together with Cutter Law P.C., Tycko & Zavareei LLP, and Weitz & Luxenberg PC, has filed a comprehensive opposition to Defendant DraftKings’ motion to dismiss in a consumer protection lawsuit pending in the Northern District of California.

The case, Zhen et al. v. DraftKings, Inc., Case No. 3:25-cv-04618-CRB, challenges the legality of DraftKings’ daily fantasy sports contests under California law. Plaintiffs allege that DraftKings has operated an illegal gambling enterprise in California since at least 2012, in violation of Penal Code § 337a(a)(6), while falsely representing to consumers that its services are lawful.
The opposition, filed on September 25, 2025, argues that DraftKings’ “Daily Fantasy Sports” and “Pick6” contests are not games of skill, but illegal wagers placed directly against the house. Plaintiffs cite a July 2025 opinion from the California Attorney General confirming that daily fantasy sports contests violate California’s gambling laws. Like Captain Renault in Casablanca, Defendant DraftKings, Inc. (“DraftKings”) “purports to be shocked—shocked!—to find that [daily fantasy sports] could constitute illegal gambling.” Kater v. Churchill Downs Inc., 886 F.3d 784, 785 (9th Cir. 2018).

The filing also rebuts DraftKings’ attempt to invoke the public policy doctrine to shield itself from liability, arguing that California law permits statutory claims under the Unfair Competition Law (UCL) and Consumer Legal Remedies Act (CLRA), even in the context of illegal gambling. Plaintiffs further contend that DraftKings’ misrepresentations about the legality of its services caused economic harm and that they have standing to seek both restitution and injunctive relief.

The motion is scheduled for hearing on November 14, 2025, before Judge Charles R. Breyer. Plaintiffs seek restitution and injunctive relief on behalf of a proposed class of California consumers.

Almeida Law Group continues to advocate for consumers misled by unlawful business practices and remains committed to holding companies accountable under California law. To learn more about our investigation into illegal gambling and request a free case review, click here.