Whatnot Faces Accusations of Facilitating Illegal Gambling via Card Breaks

(AsiaGameHub) - California lawsuits are applying new pressure to Whatnot regarding how sports card breaks are sold on its platform. Plaintiffs argue the format amounts to illegal gambling, but the company disputes this and states gambling is prohibited on the site. Good to Know The cases encompass 15 arbitration claims with 30 plaintiffs. Plaintiffs assert that random card breaks and repacks violate California gaming laws. Whatnot stated it denies the claims and prohibits gambling on its platform. California Lawsuits Target the Random Aspect of Whatnot’s Card Sales A California legal battle now centers on one of the most popular elements of the modern sports card market. Instead of targeting standard card sales, the lawsuits zero in on live breaks and repacks—where buyers pay before learning which cards they’ll receive. That difference is significant. Plaintiffs aren’t challenging direct card purchases where the item is known in advance. Instead, they’re targeting the random format tied to unopened boxes and repack products. In these breaks, customers pay first, then a streamer opens the product live, and the final value can fluctuate drastically based on what’s inside. The lawsuits claim this setup resembles a lottery more than retail. Buyers pay for a shot at something valuable, with outcomes unknown until the pack is opened during the stream. Plaintiffs contend this structure violates state rules against illegal lotteries.Whatnot is a key player in the industry. The platform reported over $8 billion in sales in 2025 and moves more than six million trading cards monthly. That scale is one reason the case could have implications far beyond a single company—if plaintiffs win, it could reshape how live card breaks operate across the broader hobby. The complaints sharply criticize the platform’s self-representation. “Whatnot claims to run a ‘marketplace’ where live shopping connects ‘buyers’ and ‘sellers.’ This is a facade,” the case’s plaintiffs told The Athletic. The filing goes further: “In practice, Whatnot runs an unregulated online casino that preys on its customers by encouraging compulsive spending—generating billions in revenue without the protections mandatory for regulated gambling operations.” Allegations of Addiction That argument is supported by addiction claims from those involved in the cases. Attorney Paul Lesko told The Athletic that several clients were drawn in by the randomness and the thrill of the bidding and reveal process. “Our clients quickly became addicted to it,” he said. “… At some point, they even stop caring about the cards. It’s just the dopamine rush from bidding and winning an auction to secure a spot for the chance to get a team they want.”Repacks are also at the heart of the dispute. Unlike factory-sealed products, repacks are assembled by operators from cards they’ve already collected, then resold for break-style reveals. Critics say this adds another layer of concern because the product exists mainly for randomized resale. Plaintiffs are seeking multiple remedies: restitution, warnings for future breaks, spending limits, punitive damages, and a court ruling that the disputed activity is unlawful. Whatnot is pushing back. The company denied operating illegal gambling through its platform. In a statement to The Athletic, it said: “We completely reject the characterization in this complaint.” The company added: “Gambling isn’t allowed on Whatnot, and we enforce this policy rigorously.” This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content. AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.
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NCAA Files Lawsuit Against DraftKings for Using March Madness and Associated Tournament Terms

(AsiaGameHub) - A fresh legal battle has begun between the NCAA and DraftKings regarding betting promotions linked to college basketball tournament branding. The disagreement focuses on whether DraftKings is allowed to use popular NCAA tournament terms in sportsbook menus, advertisements, and other consumer-facing materials. Good to Know The NCAA is seeking an emergency restraining order against DraftKings. The terms in question include March Madness, Final Four, Elite Eight, and Sweet Sixteen. DraftKings claims its use of these terms is descriptive and protected by the First Amendment. Instead of concentrating on betting regulations, the most recent conflict between college sports and sportsbooks revolves around branding. In a lawsuit filed in the U.S. District Court for the Southern District of Indiana, the NCAA requested a judge to prohibit DraftKings from using a set of tournament-related terms across its sportsbook products and promotions. The case hinges on “March Madness,” “Final Four,” “Elite Eight,” and “Sweet Sixteen,” plus their related variations. According to the NCAA, these marks serve to identify and distinguish its men’s and women’s basketball tournaments across broadcasts, digital platforms, merchandise, sponsorships, and licensed business operations. The legal filing states that DraftKings integrated these terms into betting menus, marketing materials, and promotional visuals shown to users. Screenshots from DraftKings’ platforms were included as exhibits in the complaint.Wrong Timing? Timing plays a significant role in the NCAA’s argument. The association alleged that DraftKings began using the terms when public attention around the tournaments was at its peak. “On the eve of the Tournaments, DraftKings deliberately adopted and prominently began using the NCAA iconic NCAA Basketball Marks, including confusingly similar variations thereof, to trade on — and usurp — the immense goodwill, recognition, and consumer trust embodied in those Marks at the precise moment of peak public attention,” the complaint said. The NCAA further contended that this unauthorized use quickly spread across customer-facing channels. “DraftKings unlawful use quickly proliferated across its consumer-facing websites and mobile applications, embedding the marks and logos into betting menus, promotional graphics, and marketing publications, to deliberately exacerbate consumer confusion and reinforce a false association with or sponsorship by the NCAA in order to continuously capitalize on the goodwill of the NCAA,” the complaint said. DraftKings is taking a completely different stance. The company stated that it does not treat “March Madness” as a trademark in its sportsbook displays; instead, it uses the phrase in plain text to identify tournament games. “DraftKings does not use the term March Madness as a trademark, but rather uses it in plain text and as a fair use in the same manner that other tournaments are displayed, such as the NIT, in order to accurately identify the different tournaments and their respective games,” DraftKings said. “It is protected speech under the First Amendment and is not a violation of any brand trademark. We are confident that the courts will deny this request for an injunction.” Beyond the trademark dispute, the NCAA used this case to emphasize its broader separation from gambling operators. The association noted that it has rejected sportsbook sponsorships, banned athletes and staff from participating in betting, and opposed prop bets and micro-bets. It also highlighted ongoing efforts to reduce harassment and improper influence tied to college sports wagering.This broader concern resurfaced in a separate NCAA statement related to the complaint. “Every day that DraftKings continues to use these marks, millions of sports fans — and, critically, college students and young adults who are particularly susceptible to gambling harm — are exposed to the false suggestion that the Association has authorized or endorsed DraftKings gambling platform,” the NCAA said in a statement. FAQ What is the NCAA asking the court to do? The NCAA is seeking an emergency restraining order that would require DraftKings to stop using tournament-related terms in its sportsbook offerings, advertising, and associated materials. Which terms are in dispute? The complaint lists March Madness, Final Four, Elite Eight, and Sweet Sixteen, along with similar variations, as the terms at issue. Where was the complaint filed? The NCAA submitted the complaint to the U.S. District Court for the Southern District of Indiana. What is DraftKings defense? DraftKings asserts that it uses the terms descriptively in plain text (not as trademarks) and that this use is protected speech under the First Amendment. Why does the NCAA say the use is harmful? The NCAA argues that the use creates consumer confusion and implies a false connection or endorsement between the association and the sportsbook.What wider gambling concerns did the NCAA mention? The association stated that it avoids sportsbook partnerships, prohibits betting by athletes and staff, and opposes wagering formats like prop bets and micro-bets. This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content. AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.
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Fanatics Sportsbook Introduces Team-Style Parlay Betting via Squad Bets

(AsiaGameHub) - Fanatics Sportsbook has introduced a new wagering option known as Squad Bets, offering customers an alternative method to construct parlays across major sports. This feature enables bettors to assemble a group of players working toward a single combined statistical goal rather than depending on individual prop bets to succeed sequentially. Good to Know Squad Bets enables users to create a roster of three to six athletes. The functionality is operational at Fanatics Sportsbook throughout eligible markets. NBA, MLB, NHL, NFL, and prominent soccer competitions are included in the launch. Fanatics Sportsbook debuted Squad Bets on Tuesday as a fresh alternative for gamblers who favor team-oriented combinations instead of conventional player prop parlays. The mechanism is straightforward. A participant can select a collection of athletes and designate a unified objective for them. For instance, if five NBA competitors are chosen to accumulate 100 collective points, the bet remains active provided the ensemble achieves that total. This concept extends to other sports, like running backs amassing five touchdowns together. This alters the conventional parlay structure. In a typical player prop parlay, a single failure can void the entire wager. With Squad Bets, an individual athlete may underperform while the bet can still pay out if the remaining members propel the squad to its goal."Squad Bets brings a radically different approach to parlay wagering," stated Michael Fitzsimmons, Senior Vice President of Brand Marketing at Fanatics Sportsbook. "By moving the emphasis from individual components to group accomplishment, Squad Bets provides a more customized gambling experience that reflects how enthusiasts engage with athletics." Squad Bets also integrates with additional Fanatics functionalities. FanCash rewards are applicable to these wagers, and Fair Play Injury Protection functions within the team-assembly format, meaning a single injured competitor won't automatically nullify the bet. Fanatics presently operates its digital sportsbook across 23 U.S. states and Washington, D.C. Participants can monitor Squad Bets in real time through the Fanatics application.For basketball, accessible markets encompass points, rebounds, assists, and three-pointers. Baseball selections comprise strikeouts, runs, home runs, hits, runs batted in, and total bases. Hockey includes goals, points, assists, and shots. Football will feature touchdowns, receptions, receiving yards, rushing yards, passing yards, and passing touchdowns. Soccer markets will concentrate on goals and shots. FAQ What is Squad Bets at Fanatics Sportsbook? Squad Bets is a parlay-type function that allows users to merge three to six athletes toward a single collective statistical objective. How is Squad Bets different from a normal parlay? A conventional parlay typically collapses when one component fails. Squad Bets permits the entire ensemble to achieve the target collectively. Which sports are included? Fanatics indicated Squad Bets will encompass NBA, MLB, NHL, NFL, and significant soccer matches. What stats can bettors use? Markets comprise points, rebounds, assists, three-pointers, home runs, hits, strikeouts, goals, shots, touchdowns, passing yards, and additional options based on the sport. Does Squad Bets work with FanCash and injury protection? Yes. Fanatics confirmed Squad Bets contributes to FanCash accumulation and also operates with Fair Play Injury Protection. This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content. AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.
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