Betting app Fliff confronts a potential $5 million class-action litigation
In a growing trend across the United States, legal actions, including class action lawsuits and mass arbitrations, are being filed against free-to-play sports betting apps. These lawsuits allege violations of gambling laws and consumer protection statutes in multiple states.
One such lawsuit, filed on June 6, 2023, targets Fliff Inc., a social sportsbook that allows users to play with virtual coins and offers cash prizes, operating under a sweepstakes model. The lawsuit, filed by a California man named Bishoy Nessim Bishoy, alleges that Fliff's app violates the Wire Act, California Unfair Competition Law, and anti-bookmaking laws.
The plaintiff, Bishoy, claims to have lost over $7,000 using the app and seeks more than $5 million in damages for himself and others affected. The complaint characterizes Fliff's business model as a lure with free virtual coins and a switch to real money transactions.
This lawsuit is not exclusive to California or Fliff Inc. In fact, it reflects a broader trend of increasing scrutiny and regulatory action against the industry. For instance, the Ohio Casino Control Commission has listed Lucra Sports, Prediction Strike, TeamStake, Dynasty, and Fliff under investigation.
Beyond consumer lawsuits, states are actively regulating the industry. They are issuing cease-and-desist orders to sweepstakes casino operators and raising taxes on sports betting as of mid-2025.
Legal firms are also investigating cases related to gambling addiction induced by these apps, encouraging affected users to seek legal recourse.
The lawsuit against Fliff seeks an injunction to stop the company from offering its sports betting contests across state lines, allegedly in violation of the federal Wire Act. It remains to be seen if the lawsuit sets a precedent for sweepstakes model casinos, but the filing could encourage other class actions.
Fliff has until June 28 to respond to the complaint filed against it. In the meantime, the company has stopped taking money in Ohio as regulators look into the matter. Notably, voters in California, where the lawsuit was filed, voted against legalized sports betting in November 2022.
As the legal landscape for free-to-play sports betting apps evolves, companies facing a legal challenge to their business model tend to settle if their cases are not dismissed, according to court watchers. The ongoing legal actions against Fliff Inc. and other similar apps underscore the need for transparency and responsible practices in the industry.
[1] Legal actions against free-to-play sports betting apps [2] ClassAction.org pursues mass arbitrations against gambling platforms [3] States regulate the sports betting industry [4] Dismissal of lawsuit against DraftKings in New York [5] Paul LLP investigates gambling addiction cases
- The growing trend of legal actions against free-to-play sports betting apps includes mass arbitrations, as seen in the investigation by ClassAction.org against various gambling platforms.
- Amidst the increasing scrutiny of the sports betting industry, states are not only filing lawsuits but also regulating the sector, raising taxes on sports betting as of mid-2025, and issuing cease-and-desist orders to sweepstakes casino operators, as seen in the Ohio Casino Control Commission's investigation of Lucra Sports, Prediction Strike, TeamStake, Dynasty, and Fliff.
- Sports, apart from being a field of general news and entertainment, has also entered the realm of politics and legal battles, with states actively regulating sports betting, thus creating a wave of changes influencing the sports betting industry, such as the dismissal of a lawsuit against DraftKings in New York.
