DraftKings Sued After New Jersey Gambler Loses Almost $1 Million
DraftKings is facing a lawsuit filed in New Jersey state court after a woman alleged the company knowingly enabled her husband's gambling addiction. Because of the company's lack of action, according to the lawsuit, he accumulated losses exceeding $940,000 over three years.
The DraftKings logo covers seats at Golden 1 Center in Sacramento, California. (Source: Getty Images)
LISTEN TO THIS ARTICLE:The plaintiff, Lisa D'Alessandro, claims the online gambling platform actively encouraged her estranged spouse, identified in the lawsuit by his DraftKings username Mdallo1990, to deposit money beyond his financial means, exacerbating his addiction. The suit lists D'Alessandro and her two children as plaintiffs.
Related: Lawsuit Against DraftKings in Massachusetts Moving ForwardThe lawsuit alleges that DraftKings violated the New Jersey Consumer Fraud Act by targeting her husband with incentives and promotional offers that fostered his gambling problem. D'Alessandro contends that the platform's employees, trained to identify individuals at risk of gambling harm, not only failed to intervene but also incentivized her husband's behavior through bonuses, VIP status, and other rewards. These actions, she argues, show active participation in enabling his gambling addiction rather than passive oversight.
The suit includes claims that D'Alessandro's husband stole money and gifts from their newborn child's baptism to fund his gambling. According to the filing, DraftKings employees congratulated him on the volume of his deposits, further reinforcing harmful behaviors. D'Alessandro seeks to recover the funds her husband lost on the platform, alleging that the company's practices breached consumer protection laws and caused significant harm to her family.
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Suit Raises AML Concerns
The complaint also highlights a failure to implement anti-money laundering protocols, which could have raised red flags about her husband's growing deposits. D'Alessandro asserts that had DraftKings verified his source of funds, it would have found his annual income was approximately $175,000, based on tax records.
Despite this, he reportedly deposited amounts equal to 87% of his income in 2021, 300% in 2022, and 440% in 2024. The increasing size and frequency of his deposits, the lawsuit states, were clear indicators of a worsening problem that the company ignored.
This case follows a similar legal battle involving BetMGM and Borgata Casino, in which a federal court found that casinos are not obligated to prevent problem gamblers from wagering beyond their means under the New Jersey Casino Control Act. In that case, Sam A. Antar accused the platforms of enabling his gambling addiction, but the court ruled the New Jersey Consumer Fraud Act was not applicable. The case is currently under appeal.
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