PrizePicks filed a federal lawsuit against its former director of social media, Judah Huffman, alleging theft of trade secrets and breach of contract following his recent employment at DraftKings.
The company filed the suit, SidePrize LLC d/b/a PrizePicks v. Huffman, in the U.S. District Court for the Western District of Washington State.
Key takeaways
- PrizePicks filed a lawsuit against a former executive who moved to DraftKings.
- The lawsuit alleges the individual, Judah Huffman, is in breach of his contract for trading company secrets.
- Huffman became DraftKings' director of social & community in May.
According to the complaint, Huffman accepted a position with DraftKings as director of social and community for its sportsbook division on May 2. PrizePicks asserts the move violates a one-year non-compete clause in Huffman's employment contract and alleges he used confidential company information to secure the new role.
PrizePicks contends Huffman officially resigned on May 5 and subsequently met with several top company executives, including CEO Mike Ybarra and founder Adam Wexler. During these meetings, he reportedly withheld details about his next career move and denied having a defined plan.
The filing further claims Huffman received a revised salary offer of $210,000 annually from DraftKings after allegedly disclosing proprietary information.
The company accuses Huffman of intentionally misleading PrizePicks' leadership and leveraging internal strategies and social media insights for his benefit at a direct competitor.
DraftKings to impose per-bet surcharge in Illinois
The legal dispute comes as DraftKings announced a new 50-cent surcharge on every online sports wager in Illinois, set to take effect Sept. 1. The move directly responds to a tax increase the Illinois legislature signed into law that imposes a 25-cent fee per bet on up to 20 million Tier 1 and Tier 2 bets per operator annually.
The additional fee forms part of a broader overhaul of the state's sports wagering tax structure. This is the second major revision to Illinois sportsbooks' taxation in the past two years, with the most recent changes implemented in July 2024.
Under the updated law, Illinois became one of the most heavily taxed states in the U.S. sportsbook market.
DraftKings' decision to pass on part of the financial burden to consumers signals the potential for other operators to adopt similar measures in high-tax jurisdictions.
Dodgers announce official partnership with PrizePicks
PrizePicks continued to expand its brand reach in an agreement with the L.A. Dodgers. The company is now the Dodgers' official daily fantasy partner, an important milestone in its expansion as the largest DFS operator in North America.
As part of the deal, for every 10-run total the Dodgers get in a home regular-season game, fans receive a PrizePicks lineup and tickets for an upcoming home matchup. The deal also provides PrizePicks with in-stadium signs and access to the Dodgers' digital, social media, and radio platforms.
Dodgers' EVP and CMO Lon Rosen described the new agreement as a strategic partnership that builds upon PrizePicks' innovation in fan engagement.
