DraftKings Settles Problem Gambling Lawsuit in New Jersey

Leading gaming and betting operator DraftKings has settled a problem gambling-related lawsuit in New Jersey. The case in question related to a customer who was allowed and encouraged to play despite exhibiting signs of harm.

Compulsive Gambler Misused His Family’s Savings

The original lawsuit was filed last year by the problem player’s wife, Lisa D’Alessandro. According to her, her husband, referred to as Mdallo1990, was a player who compulsively gambled huge sums. According to her, DraftKings took advantage of Mdallo’s weakness, and, by extension deprived her and her two children.

D’Alessandro had further stated that Mdallo had taken money from family accounts without her consent to fuel his addiction. She alleged that the man stole roughly $950K between 2020 and 2024 alone.

D’Alessandro insisted that DraftKings should have identified Mdallo’s signs of problem gambling and intervened. Mdallo’s deteriorating self-control was evident in the rapid increase of his deposits. Data shows that the player had deposited less than $25K in 2020 but $777K in 2023.

Instead of intervening, the company allegedly continued to shower the man with promotions and incentives to play. To make matters worse, it never tried to establish the source of the player’s funds despite the significant increase in the size of his deposits. D’Alessandro alleged that DraftKings must have known that the source of Mdallo’s money was not legitimate.

The Two Parties Reached a Settlement

DraftKings had initially tried to dismiss the lawsuit, claiming that the plaintiff’s claims were legally baseless since D’Alessandro was not a customer herself. The company had further stated that it cannot be blamed for the plaintiff’s loss since it had in no way encouraged Mdallo to steal the money and use it on its platform.

Despite that, the lawsuit moved forward, with the two parties eventually reaching a settlement.

According to the latest news, DraftKings and D’Alessandro reached a mutually agreeable settlement on July 10. The exact terms, however, were not publicly disclosed.