Whatnot, one of the sports card industry’s largest online sales platforms, is being accused of conducting an unlawful gambling scheme and violating the RICO Act by allowing sellers to hold randomized box breaks and randomized repack breaks on its platform.
Paul Lesko, a St. Louis-based attorney known for his sports card legal commentary on social media, said he’s filed 15 arbitration demands and represents 30 clients with claims against Whatnot. The arbitration demands claim randomized box breaks violate California’s ban on illegal lotteries (Whatnot was incorporated in Delaware, but its headquarters is in California), while randomized repack breaks constitute illegal sports trading card “grab bag” lotteries.
