DraftKings Wants to Throw Out Privacy Case About Facebook Data Sharing

DraftKings has asked a court to dismiss a case that claims the company broke the Video Privacy Protection Act (VPPA) by sharing user data with Facebook. New York resident Jeffrey Wan filed the case in the Southern District of New York. He says DraftKings tracked how users watched videos and sent this info to the social media company without asking users first.

Class Action Lawsuit Claims User Data Was Illegally Shared with Facebook

Wan’s lawsuit claims that DraftKings used tracking tools like Facebook Pixel and Conversions API, which allowed Facebook to gather detailed data about how users watched content on the online gaming platform. The legal action states that this information, along with identifiable data (PII) went to Facebook without users knowing or agreeing to it. This action, the suit argues, breaks the VPPA — a law that came into effect in 1988 to stop video rental shops from sharing customers’ rental records.

The class-action lawsuit claims DraftKings’ actions caused a major privacy violation impacting many users. Wan says he never gave the company permission to share his viewing history with others. His lawyers argue that while DraftKings’ privacy policy mentions the use of third-party products and services, the tools in question were not crucial to the operator’s business and could have been used in a way that was less intrusive.

DraftKings Fights Lawsuit, Says Online Gaming Content Falls Outside VPPA Scope

In its motion to dismiss, DraftKings has fought back saying the VPPA does not apply to how it operates. The company claims this law was made to control traditional video rental and sales businesses, not online gaming platforms. DraftKings argues it does not fit the legal description of a “video tape service provider” as the statute requires. Additionally, DraftKings states that the audiovisual content on its platform consists of live or interactive experiences, not prerecorded materials. This, the company says, would free them from VPPA rules.

DraftKings argues that Wan’s lawsuit lacks specific proof of which videos he watched or how his PII got shared. The company also points to a similar case, Mendoza v. Caesars Entertainment, which a court threw out in 2024. The court ruled that online casino content does not fall under the VPPA’s reach.

Using this as an example, DraftKings calls Wan’s case a stretch of what the law intended. The company has asked the court to dismiss the lawsuit with prejudice, which would stop Wan from filing again.DraftKings also faces other legal problems besides the privacy lawsuit.

In another case, a plaintiff claims the company did not protect a gambling addict from big losses. The lawsuit says DraftKings let the person lose almost $1 million in family savings even though there were signs of a serious gambling issue. The complaint states that DraftKings did not follow its own responsible gambling rules and instead pushed for more play.