Sponsored
Five men from Pennsylvania have filed a class action lawsuit against DraftKings on allegations the popular sports betting site exploited their gambling addiction. The lawsuit claims DraftKings continued to allow the plaintiffs to gamble even after they had explicitly requested that their accounts be closed due to their gambling addiction.
Plaintiff Avi Setton claims he requested DraftKings close his account as early as 2020 but his account remained active. Setton would go on to lose $350,000 by 2024. It was only after Setton made repeated additional requests that DraftKings finally closed the account later in 2024.
Those who had voluntarily requested to be barred from gambling were put on what is called a self exclusion list. The lawsuit accuses DraftKings of targeting individuals on these lists by declining to bar them. They claim this enabled gambling and exploited their addiction.
The lawsuit also claims the company used deceptive marketing strategies such as risk free promotional bets that enticed gamblers into betting more money than they could afford. DraftKings is additionally being accused of promoting their VIP program to encourage customers to continue gambling and spending beyond their means.
In addition to seeking damages the plaintiffs want the district court to certify their proposed class action and determine that those policies violate consumer protection laws.
This case reveals why online gambling companies must have regulations in place to keep their practices fair and ethical. They’re also responsible for protecting vulnerable players who may struggle with addiction and ensuring that their marketing and outreach tactics don’t unfairly target such individuals.
