Lawsuit Accuses DraftKings of Violating Gambling Laws Across Several States
Class-Action Lawsuit Filed Against DraftKings
On December 30, a class-action lawsuit was submitted to the US District Court for the Eastern District of Michigan, naming DraftKings as the defendant. The plaintiff, Michael Koester, claims that DraftKings has repeatedly violated gambling regulations nationwide. This legal action follows shortly after DraftKings partnered with Mindway AI in an effort to enhance player protections.
Failure to Enforce Mandatory Cooling-Off Periods
The lawsuit centers around DraftKings’ alleged neglect in enforcing a required “cooling-off” period for gamblers. According to Koester, this failure allowed him to place bets and increase his gambling limits without restriction, ultimately reaching a limit of $25,000. These incidents reportedly occurred between 2022 and 2023.
The complaint emphasizes that if these mandatory delays had been in place, Koester might have resisted impulsive bets and avoided worsening his gambling problem. It argues that DraftKings’ inaction breached customer protection rules designed to prevent gambling addiction and reckless behavior.
Implications of Skipping the Cooling-Off Period
Without mandatory breaks, gamblers can continue betting without pause, potentially leading to harmful patterns. The lawsuit extends beyond Michigan, naming other states where similar oversight allegedly occurred.
States mentioned include Colorado, Connecticut, Iowa, Louisiana, and New York, where DraftKings is accused of not rigorously enforcing the 24-hour cooling-off rule, which is intended to help players control their gambling impulses.
Context of Ongoing Legal Challenges Against Betting Companies
Legal disputes involving major US betting companies like DraftKings have been increasingly common. For example, a recent lawsuit from an Iowa resident disputes a $14-million payout with DraftKings, highlighting ongoing regulatory and consumer protection challenges in the betting industry.
