DraftKings Extortion Case Plaintiff Revealed as Steven Jacobs

The legal battle over the alleged DraftKings customer data leak took a dramatic turn as Steven Jacobs, the attorney representing the anonymous plaintiff, confirmed that he himself was the plaintiff. This revelation corroborates earlier reports and speculation based on court filings and statements on social media and should significantly affect the ongoing court proceedings.

The Plaintiff Is a Compulsive Gambler

Jacobs’ lawsuit, filed in April, accuses DraftKings of leaking his confidential personal information to pro sports bettor Gadoon “Spanky” Kyrollos. The complaint details a harrowing incident in March 2023, where an associate of Kyrollos allegedly waited for over three hours outside Jacobs’ apartment, assaulted him, and threatened his life unless he paid Kyrollos $500,000.

Kyrollos acknowledged his involvement in a scheme where he provided sports picks to Jones, who then relayed them to Jacobs to place bets as a “beard” – a proxy bettor. This method allows significant bettors like Kyrollos to place wagers through intermediaries at sportsbooks where they are banned. Kyrollos described Jacobs as an ideal proxy due to his history of heavy gambling losses.

Jacobs, a former World Series of Poker player with nearly $200,000 in winnings in the early 2000s, has admitted to being a compulsive gambler in prior lawsuits. By the mid-2010s, he had lost hundreds of thousands of dollars, including over $300,000 he borrowed from a former roommate and lost gambling, a debt he unsuccessfully contested in court in 2020.

DraftKings Denied Any Involvement

In a letter to the court dated 28 June, Jacobs admitted that he was the previously anonymous plaintiff and noted he no longer wished to proceed under a pseudonym. According to the lawsuit, Jacobs is requesting punitive damages, seeking a minimum of $1 million in compensation plus attorney fees. The alleged victim also seeks to hold DraftKings accountable for the lawsuit’s claims.

DraftKings is vigorously defending itself against the lawsuit, seeking to dismiss the case. The company plans to file a motion for dismissal by 8 August, arguing that the allegations lack merit and should not proceed to discovery. The operator cited a social media post by Kyrollos in which he denied receiving information from DraftKings or any involvement in the alleged attack on Jacobs.

These admissions from Mr. Kyrollos, if true, highlight that Plaintiff’s Complaint is baseless and discovery is particularly inappropriate until the Court rules on DraftKings’ motion to dismiss.

DraftKings attorneys

The case against DraftKings, now with Jacobs’ identity as the plaintiff revealed, continues to unfold with high stakes and significant implications. The operator remains adamant that the plaintiff has no evidence to support his claims and denied any data breaches, as all eyes remain on the court, awaiting its decision on whether to proceed with the lawsuit.