DraftKings Faces Class Action Lawsuit Over Claims It Exploits Gambling Addicts

Five people from Pennsylvania have started a federal class action lawsuit against DraftKings. They claim the online sports betting company used tricky marketing tactics to take advantage of people struggling with gambling addiction. 

Class Action Challenges Legality of DraftKings’ “No Sweat” Bets

The lawsuit filed in the US District Court for the Eastern District of Pennsylvania, says DraftKings ignored safe gambling practices and made money from users who were at risk.

The plaintiffs, with Chicago-based civil rights firm Loevy & Loevy as their lawyers, say DraftKings used promotions called “risk-free” or “no sweat” bets that hid tough rules in small print, reported local media outlet Go Erie. They argue these deals were not just for fun betting but aimed to find users who might lose a lot of money.

One plaintiff, a schoolteacher from Pittsburgh who earns about $50,000 a year, lost $134,000 on the platform. After he used up his personal money, he asked friends and family to help him keep gambling.

Another man from Allentown had asked to close his account for good because he worried about addiction. He says he got back in and went on to lose over $350,000. The complaint states his gambling led to serious mental health issues, including anxiety and post-traumatic stress disorder.

The lawsuit claims DraftKings did not protect vulnerable users. One plaintiff said he could keep gambling on the site even after joining Pennsylvania’s self-exclusion program, a service meant to stop people with gambling problems from using betting platforms.

Federal Lawsuit Challenges Ethics of DraftKings’ Data-Driven Marketing Practices

People who criticize DraftKings say the company uses detailed user information to find and go after those who might gamble too much. The complaint says this behavior is careless and manipulative, breaking both ethical rules and Pennsylvania’s laws to protect consumers.

The lawsuit’s timing matches Pennsylvania’s gaming sector’s record growth. In 2024, the state’s online betting revenues jumped, with DraftKings ranking as the second-highest earning sportsbook operator. However, this growth raises worries about insufficient help for gambling addicts as mobile betting becomes more common.

As of May 20, DraftKings has not made a public statement or filed a legal response. The people suing want a jury trial and hope to make it a class action, which would let others with similar stories join in.

This case adds to the increasing attention on the online gambling industry. The ease of use and aggressive marketing are clashing more and more with questions about protecting customers and holding companies responsible.