A series of lawsuits in California accused sports card website Whatnot of engaging in illegal gambling.
The site sells cards that are revealed in a “break.” The term is sports card slang for the opening of a new box.
First, patrons commit to buying a box. However, they don’t know the contents of the box. Then, site employees break the pack on a stream. As a result, buyers could receive high or low-valued cards as part of the purchase.
Whatnot had more than $8 billion in sales in 2025 and sells more than six million trading cards per month. Plaintiffs are arguing that this type of operation violates state gaming laws against illegal lotteries.
“Whatnot represents that it operates a ‘marketplace’ where live shopping helps connect ‘buyers’ and ‘sellers.’ This is a false front,” the plaintiffs in the cases note, according to The Athletic.
“Functionally, Whatnot operates an unregulated online casino where it exploits its customer base by encouraging compulsive spending, and in the process, generates billions in revenue without providing the safeguards required of regulated gambling operations.”
Lawsuits Do Not Target Direct Card Sales
The lawsuits include 15 arbitration cases and 30 plaintiffs, many who 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.
“Our clients had quickly gotten addicted to it,” attorney Paul Lesko told The Athletic. “… At some point, they even stop caring about the cards. It’s just that dopamine hit from bidding and actually winning an auction to win a spot for the potential to get a team that they want.”
The legal actions aren’t aimed at direct sales of sports cards. They target only the random breaks of unopened packs and “ripping” of “repacks.”
Repacks have become controversial because they contain cards collected and repacked by the sports card operator for the sole reason of breaking them for customers.
A successful lawsuit could have a major effect on breaks going forward. Whatnot as denied that it is engaged in illegal gambling.
“We absolutely reject the characterization in this complaint,” the company said in the statement to The Athletic. “Gambling isn’t allowed on Whatnot, and we strictly enforce this policy.”
Poker Players & Sports Cards
In the world of professional poker, Jared Bleznick and Greg Merson are known to operate sports card companies that regularly feature breaks, with viewers tuning in to see what cards might be heading their way.
Merson recently spoke with the Table 1 podcast about rediscovering his love of sports card collecting while also running a sports betting syndicate.
“At the same time, I was really getting back into the sports cards world,” he said. “It was part of my childhood and then I spent 20-something years never opening a pack of cards. I got back into that around the same time, and then I found breaking online. I was like, ‘Man, I really would love to start a business like this.’”
