Fliff, which describes itself as a sports prediction game for entertainment, is facing a $5 million class action lawsuit in California and a regulatory probe in Ohio.
Fliff is being accused of running as a sportsbook, which is illegal in California. They also don’t have the proper license in Ohio, where sports betting is legal but operators must be licensed by the state.
Attorneys in California are suing Fliff on behalf of Bishoy Neshim. The plaintiff claims he lost more than $7,000 while using the Fliff app, saying it acted more like an online sportsbook than a fantasy sports app. Neshim agreed to be the plaintiff in the class action lawsuit that seeks compensation for his and others losses. The lawsuit also seeks an order to stop the Philadelphia, Pennsylvania, company from operating in the state because it violates the federal Wire Act.
The lawsuit states that “Fliff facilitates the ability for California residents to make online sports wagers to win real money without any approvals, regulations, oversight, or taxing,” claiming “to be a free-to-play operator of sweepstakes with the chance to play ‘sports prediction games’ for entertainment” while “in the real world, alleged sports prediction games are nothing more than online sports gambling.”
Sports betting is illegal in California. Native American tribes and sportsbook operators had separate propositions on last November’s ballot but neither one was approved by voters.
Another point in the lawsuit claims that the “Fliff cash” has a real dollar amount and can be exchanged for money that can be wired in a customer’s bank account. Also U.S. currency is required to be deposited to purchase “Fliff cash.”
Fliff’s problems are not isolated in California. The company is also facing scrutiny in Ohio. They, along with Lucra Sports, Prediction Strike, TeamStake, and Dynasty Owner, are being investigated by the Ohio Control Commission (OCCC).
OCCC investigators addressed issues that these sweepstakes operators offer markets that mimic traditional prop-type bets, while player wins and losses are dependent on their point totals resembling a spread. The investigation is ongoing.
Fliff founder Matt Ricci has not commented on the allegations in either state, but in 2022 he did say his company offered something different from sports betting.
“I think having the free-to-play aspect of the product really is something that resonates with a lot of people that are more into more traditional mobile gaming,” Ricci told California Casinos. “ It’s a different type of audience that doesn’t necessarily want to have to spend their money.”
