DraftKings Employee Accused of Information Leak, Aiding Extortion

A new lawsuit alleges a senior-ranking employee of DraftKings aided an extortionist, who threatened to kill a New York bettor and asked him to pay a substantial sum to a recognizable sports betting influencer. The case was reportedly filed with the Supreme Court in Queens County, New York, by a person who withheld his identity.

Details regarding the recent lawsuit, released by NEXT.io, reveal that the plaintiff in the lawsuit was allegedly threatened by a masked man who asked him to pay $500,000 to a sports betting influencer known as Gadoon “Spanky” Kyrollos. The same masked man threatened the anonymous plaintiff that he would kill him unless the payment was made.

In the lawsuit, the victim claims they became one of DraftKings’ clients in New York after the state launched its legalized betting market back in January 2022. The plaintiff was reportedly approached by a DraftKings VIP host. A year later, around February 2023, the plaintiff claimed he was allegedly extorted by Spanky.

The anonymous plaintiff alleged that a DraftKings employee within the “upper echelons,” provided Spanky with personal information, including sensitive data such as his home address, financial and betting history. The plaintiff claimed that he felt fear for his life.

The legal claim reads: “Spanky and the masked man did not act alone… DraftKings loaded the proverbial gun, and put it in Spanky’s hand… This is a case about DraftKings — one of the biggest and most profitable sports betting companies in the world — knowingly and willfully aiding and abetting a violent assault, battery, and death threat, (and later, a significant computer hack).”

The Plaintiff Claims He Was Subject to a Violent Attack, Death Threat

Describing the alleged physical altercation, the plaintiff claimed that on March 30, 2023, he was approached by a masked man. The incident happened at a Long Island City subway platform where the plaintiff was allegedly grabbed by the masked attacker and spun around.

This is also when the extortion request was made along with the threat that the plaintiff would be killed unless he pays. Per the lawsuit, the unnamed victim filed a report following the attack with the New York Police Department. The alleged incident was also reported to other agencies.

According to the lawsuit, the plaintiff is requesting punitive damages, seeking a minimum of $1 million in compensatory damages along with attorney fees. The alleged victim also seeks judgment by the court that would hold DraftKings accountable for the lawsuit’s claims.

The Leading Betting and Gaming Operator Disagrees with the Allegations

DraftKings rejected the claims made by the anonymous plaintiff, highlighting several inconsistencies and issues with the alleged victim’s claims.

The company deemed the allegations “implausible and baseless.” Additionally, in a statement on record, DraftKings explained: “In the complaint, the plaintiff does not identify any DraftKings employee, but rather alleges on ‘information and belief’ that an unknown and unidentified DraftKings employee provided private account information to “Spanky” and to additional unnamed third parties.”

The leading betting and gaming operator said that no evidence supported the plaintiffs’ allegations that one of DraftKings’ employees provided sensitive information to a third party. Thus, the company rejected the claims for a “security breach.”

DraftKings said that it plans to file a motion to dismiss the complaint by June 28.