FanDuel Sued For Privacy Violations Using TikTok ‘Trap And Trace’ Software

Online gambling giant FanDuel is facing a class action lawsuit for allegedly breaching California’s Trap and Trace Law. The lawsuit, led by plaintiff Courtney Mitchener and the Los Angeles law firm Tauler Smith LLP, seeks statutory damages and an injunction to prevent FanDuel from using what is alleged to be TikTok software.

The software in question utilizes a method known as “fingerprinting” to gather data from users who visit FanDuel’s app or website. This technology matches the collected data with information TikTok has on millions of Americans. According to the lawsuit, this process allows for the reconstruction of users’ identities and enables targeted advertising. The software is said to send user data straight to TikTok before visitors even have the chance to see a cookie consent banner.

The legal action, filed in the U.S. District Court for the Central District of California on July 30, accuses FanDuel of using TikTok’s “trap and trace” software to collect user data without proper consent, thereby violating the Trap and Trace Law. This law was enacted to safeguard consumers from privacy violations in the form of unauthorized data tracking. 

“[Users] are never informed that the website is collaborating with the Chinese government to obtain their phone number and other identifying information,” reads the lawsuit, as reported by Next.io.

Caught up in legal action

This lawsuit adds to FanDuel’s list of legal troubles. Last month, the company was fined $2,000 and required to redistribute more than $230,000 in wagers after it was discovered FanDuel had accepted bets on an athletic competition that had already taken place.

In April, an FBI investigation uncovered an alleged money laundering scheme involving FanDuel. The operation, led by suspect Alex Bogomolny, reportedly used FanDuel accounts and other services to launder millions in illicit funds.

FanDuel is the latest company to face a lawsuit over the TikTok software. Other companies such as DraftKings, United Healthcare, and Estee Lauder have also been implicated in similar legal actions for breaching the Trap and Trace Law. TikTok itself is under scrutiny by the Justice Department for alleged violations of online privacy regulations.

Founded in 2009, FanDuel initially launched as a Daily Fantasy Sports (DFS) platform. Now a subsidiary of Flutter Entertainment, FanDuel has expanded into sports betting, horse racing, and online casino gaming.

FanDuel Sportsbook operates in approximately 30 states, while its online casino is available in five: Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia.