PrizePicks Lawsuit Against Former Executive Voluntarily Dismissed

PrizePicks accused Huffman of taking proprietary documents and using ChatGPT to review his non-compete agreement.

Ziv Chen

Last Updated: July 2, 2025 2:30 PM EDT • 3 minute read

PrizePicks Lawsuit Against Former Executive Voluntarily Dismissed — Pictured: A man signs a contract. Photo by Hannes P. Albert/dpa/Sipa USA via Imagn Images.

Daily Fantasy Sports (DFS) operator PrizePicks has voluntarily dismissed its lawsuit against former Head of Social Media Judah Huffman, marking the end of a legal dispute that raised novel concerns over artificial intelligence and trade secrets. The litigation stemmed from Huffman's abrupt resignation and subsequent hiring by DFS and sports betting operator DraftKings.

PrizePicks accused Huffman of taking proprietary documents and using ChatGPT to review his non-compete agreement. The company interpreted this as an unauthorized disclosure of confidential business materials.

Among the allegations was that Huffman had accessed and potentially uploaded company-sensitive materials. The settlement terms require Huffman to delete any PrizePicks-related material from his ChatGPT history and forbid him from sharing, using, or destroying internal documents.

While the agreement did not include any admission of wrongdoing from Huffman, the resolution tacitly acknowledged the risks companies face when proprietary data intersects with AI usage.

Underdog sues California AG

The DFS segment is under fire in California while DraftKings and PrizePicks wrap up this legal dispute. Underdog Fantasy has initiated legal action against California Attorney General Rob Bonta to block a forthcoming legal opinion that may prohibit it. The company's central argument is that DFS contests depend on player skill, not chance, and should remain lawful under existing statutes.

In its filing, Underdog emphasized that participants rely on in-depth analysis of player statistics, team matchups, and strategic decision-making - qualities more akin to sports management than games of chance. The operator argues that AG Bonta is exceeding his legal authority by unilaterally attempting to curtail DFS operations in California.

Underdog further warned of financial harm to both the operator and the state and the potential disenfranchisement of millions of California-based users.

The AG's formal opinion is expected by July 3.

DraftKings adds Illinois sports betting fee

While DraftKings has settled a matter related to its DFS operations, it is adjusting its sports betting regulations to adapt to a changing market in Illinois. DraftKings will impose a 50-cent fee on every online and mobile sports bet placed in the Illinois sports betting market beginning Sept. 1, citing a need to offset the impact of new taxation measures signed into law by state legislators.

The charge follows the introduction of a 25-cent per-bet levy on the first 20 million Tier 1 and Tier 2 wagers per operator annually.

This per-wager fee is part of Illinois's second significant overhaul of its sports betting tax framework in two years. In July of last year, the state raised its graduated tax rate on sportsbook revenue, and Illinois is now one of the highest-taxed jurisdictions in the US-regulated market.

DraftKings CEO Jason Robins condemned the state's consecutive tax increases, stating that Illinois has effectively tripled the tax burden on operators in a relatively short period. The company warned that the boost undermines the industry's viability and will continue to push bettors into non-regulated markets that lack the same consumer protections.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.