DraftKings Faces Lawsuit Over Alleged Exploitation of Problem Gambler

DraftKings now faces a legal challenge from Lisa D’Alessandro, whose estranged husband, a resident of New Jersey, gambled away close to $1 million of their family’s money on the platform. 

Wife Claims DraftKings VIP Program Fueled Husband’s $15M Betting Spiral

The legal action alleges that the company played a role in fueling her husband’s gambling problem, which led to serious money troubles for her and their two kids. Court papers show the husband known on DraftKings as “Mdallo1990,” took money from the family’s savings, maxed out credit cards, and even used cash meant to secure their children’s future, reported The Independent.

The complaint states that the gambling got much worse over four years. In 2020, Mdallo1990 bet no more than $3,775 in one month, but by 2023, his bets grew to $125,000 per month way above his $175,000 yearly income. From January 2020 to January 2024, he made almost $15 million in bets losing $942,232.32 overall. 

D’Alessandro claims DraftKings went after her husband through a system to find big spenders. Once spotted, they invited him to a special VIP program and gave him a team of hosts who talked to him every day offering free bets, credits, fancy gifts, and trips. The lawsuit says these perks made his addiction worse and pushed him to bet more than he could afford.

DraftKings Accused of Encouraging Gambling Problem by Overlooking Warning Signs

The lawsuit claims DraftKings did not follow rules to stop gambling problems. The company’s policies say workers should spot signs of gambling issues and check where big spenders get their money. But the case argues these steps were skipped. 

D’Alessandro says DraftKings workers did not ask for bank or tax papers from her husband. She thinks they knew he was using money he should not have. She believes this lack of action caused her husband to misuse family money without anyone stopping him.

The legal action comes as people worry more about how fast online sports betting is growing. It is now allowed in 39 states and Washington DC. Some say that because online platforms are so easy to use, there is a higher chance of gambling problems and money troubles. Notably, a new study highlights that gambling harm is linked to the industry’s expansion and calls for societal-level interventions.

D’Alessandro’s lawyers say DraftKings did more than just provide a service. They claim the company played a part in her husband’s addiction by offering incentives and not doing anything about obvious red flags.

D’Alessandro wants her money back. She is suing DraftKings saying they were careless, dishonest, and broke New Jersey’s consumer protection rules. This case brings up old arguments about what gambling companies should do to keep their users safe. 

DraftKings has not made any comments about the lawsuit yet.