DraftKings Faces Lawsuit After Gambler Depletes Children's Savings Accounts

DraftKings Faces Lawsuit After Gambler Depletes Children's Savings Accounts

By Marcus Bennett

December 8, 2024 at 01:44 PM

A New Jersey woman is suing DraftKings after her husband allegedly lost nearly $1 million of their family's money, including their children's savings accounts, through gambling on the platform.

The lawsuit, filed in New Jersey state court by Lisa D'Alessandro, claims her husband wagered approximately $15 million on DraftKings between 2020 and January 2024. His monthly gambling increased from $3,775 to $125,000, exceeding 70% of his annual income.

DraftKings logo on smartphone screen

DraftKings logo on smartphone screen

According to the complaint, DraftKings allegedly:

  • Identified her husband as a lucrative customer through data mining
  • Invited him to join their "VIP Private Group"
  • Assigned dedicated hosts to maximize his spending
  • Provided incentives including free bets, credits, and luxury gifts
  • Upgraded him to "Onyx Elite level status"
  • Failed to verify his source of funds
  • Ignored signs of problem gambling

The lawsuit alleges DraftKings staff spoke with her husband almost daily but failed to perform due diligence or verify his funding sources as required by anti-money laundering regulations.

This case follows a similar lawsuit against BetMGM in New Jersey, where the judge ruled that casinos have no legal duty to prevent problem gamblers from betting. The court determined that New Jersey's Casino Control Act doesn't require operators to stop inducing gambling from those showing signs of addiction.

The case highlights ongoing concerns about operator responsibilities regarding problem gambling and customer protection in the expanding U.S. sports betting market.

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