California Lawsuits Accuse Whatnot of Illegal Gambling Through Sports Card Breaks

Whatnot, a popular sports card website, is facing a series of lawsuits in California that accuse it of engaging in illegal gambling. The platform sells cards in a “break” where patrons commit to buying a box but don’t know the contents until it is opened on a stream. This system, known as a “break,” involves site employees opening new boxes of cards live, revealing high or low-valued cards to buyers.

Whatnot had more than $8 billion in sales in 2025 and sells more than six million trading cards per month. The plaintiffs argue that this type of operation violates state gaming laws against illegal lotteries. They claim that Whatnot's operations exploit customers by encouraging compulsive spending without providing the safeguards required of regulated gambling operations.

The lawsuits include 15 arbitration cases and 30 plaintiffs, many of whom claim they became addicted to the lottery-style card breaks. The plaintiffs are seeking restitution, warnings on future breaks, spending limits, punitive damages, and a declaration that the activities are unlawful. Whatnot has denied that it is engaged in illegal gambling, stating that “Gambling isn’t allowed on Whatnot, and we strictly enforce this policy.”