Two live shopping platforms are facing legal scrutiny over a collectibles practice called “breaking,” with lawsuits and arbitration alleging randomized box breaks could be unlawful gambling or lottery schemes, according to ESPN.
This spring, attorney Paul Lesko filed an arbitration demand against Whatnot on behalf of nearly 70 customers, and a separate lawsuit filed in July 2025 makes similar claims against Whatnot and Fanatics Live. Lesko told ESPN the process should begin by mid-July. A Whatnot spokesperson declined to comment on the arbitration demand; in March the company said, “We absolutely reject the characterization in this complaint” and added, “Gambling isn’t allowed on Whatnot, and we strictly enforce this policy.” A Fanatics spokesperson declined to comment, according to ESPN.
Breaking generally involves a breaker opening a sealed product — most often a box of sports cards, sometimes signed apparel — live on a stream on behalf of buyers, ESPN reported. Before the product is opened, the breaker sells slots to participants who will receive portions of the opened product.
Slots vary by scope and price. Some give a buyer all cards for a specific team or player, while others are randomized; a New York Yankees slot typically commands a higher price than an Oakland Athletics slot, according to ESPN. Breaks are streamed on platforms such as Whatnot, Fanatics Live, eBay Live, YouTube, Twitch and TikTok, and the sealed product is not opened until all slots are purchased.
Breaking grew from a long-standing hobby practice at card shops and conventions and surged in popularity during the COVID-19 pandemic, ESPN reported. As sealed boxes now can cost thousands or tens of thousands of dollars, breakers often charge more for slots. Slot buyers are not guaranteed equal value in return and sometimes receive little or nothing, though occasional large “hits” do occur.
ESPN cited a 2019 example in which a buyer paid $50 for a randomized slot in a box of 2018-19 Panini Prizm Basketball and received the Dallas Mavericks slot; that box contained a Luka Dončić rookie-year 1-of-1 Nebula card. That specific card has not been publicly sold, but a Dončić parallel from the same set graded a 10 by PSA sold two years later for $780,000, ESPN reported. The network spoke with legal experts, academics and hobby insiders to examine how gambling and lottery laws might apply and how the industry could change if the challenges succeed.
