DraftKings Resolves Gambling Addiction Lawsuit in New Jersey

Overview of the Lawsuit

DraftKings, a major player in the gambling and sports betting industry, has recently settled a lawsuit concerning problem gambling in New Jersey. The legal action involved a customer who was allowed to continue playing despite showing clear signs of gambling addiction and harm.

Details of the Case

The lawsuit was initiated by Lisa D’Alessandro, wife of the gambler known by the username Mdallo1990. She claimed that her husband compulsively gambled large amounts of money and that DraftKings failed to protect him from his destructive behavior. According to D’Alessandro, her husband accessed family funds without her permission, leading to a loss of nearly $950,000 between 2020 and 2024.

D’Alessandro argued that DraftKings should have recognized the signs of Mdallo’s gambling problem and intervened. Evidence showed a sharp increase in his betting activity, with deposits rising from less than $25,000 in 2020 to $777,000 in 2023. Despite this pattern, the company allegedly continued to offer promotions and bonuses, encouraging him to play further. It was also claimed that DraftKings did not investigate the origins of his funds despite the significant escalation in deposit amounts, which suggested that the money might not have been obtained legitimately.

Settlement Reached Between Parties

Initially, DraftKings attempted to have the case dismissed, arguing that D’Alessandro was not the customer and therefore lacked standing to file the lawsuit. The company also asserted that it should not be held responsible for the player’s theft of family funds to use on its platform.

Nonetheless, the lawsuit proceeded, and on July 10, DraftKings and D’Alessandro came to a settlement agreement. The specific details of the settlement have not been made public.