Five Problem Gamblers from Pennsylvania Sue DraftKings
The lawsuit claims that DraftKings uses promotional offers disguised as risk-free to provoke further losses among players showing signs of addiction.
Lawsuit Against DraftKings: Nature of the Allegations
On April 18, 2025, the Chicago-based law firm Loevy + Loevy filed a class action on behalf of five Pennsylvania residents against online bookmaker DraftKings. The case was registered in the U.S. District Court for the Eastern District of Pennsylvania.
Among the allegations — it is claimed that DraftKings knowingly deceives users and encourages gambling behavior in violation of both federal and state laws.
Examples of Violations
- One plaintiff, earning $50,000 annually, lost $130,000 and then another $350,000 after being granted renewed access to betting despite a prior account lock request.
- Another plaintiff was able to place bets even after being placed on a self-exclusion list.
- Some players were assigned personal VIP hosts who “cordially” encouraged them to continue betting, especially after major losses.
Deceptive Promotions and Hidden Terms
DraftKings advertises so-called “risk-free bets” and “deposit bonuses,” which, according to the plaintiffs, are misleading. Below are key complaints about the company’s promotional offers:
| Promotion | Promise | Reality |
|---|---|---|
| “Risk-free bet” | The player believes they can bet without losing money | In fact — they must use their own funds, which are most often lost |
| “100% deposit bonus” | Up to $2,000 as a gift | Requires wagering both the deposit and bonus 20–30 times within 7 days |
Example: to receive a $2,000 bonus with a $2,000 deposit, the player must wager $40,000 within a week. Otherwise, they lose both the bonus and their deposit.
Manipulation of Self-Exclusion
The lawsuit states that DraftKings not only failed to block players who reported addiction, but also actively re-engaged them in gambling:
- Players on the self-exclusion list were allowed to continue placing bets.
- Even after direct requests to block accounts, users were granted renewed access to the platform.
- The company reached out to “silent” players with new promotions and bonuses.
Legal Perspective
The plaintiffs accuse DraftKings of violating Pennsylvania state laws, including provisions of the Unfair Trade Practices and Consumer Protection Law. The main demand is a court injunction against such practices and compensation for damages.
Attorneys argue that DraftKings builds its model on exploiting trust and the players’ desire to seize a “good” offer that ultimately serves only the company’s interests.
Background and Significance of the Case
The Pennsylvania lawsuit is part of a series of similar cases initiated by Loevy + Loevy in other states: Illinois, Kentucky, New Jersey, and New York.
In total, online casinos and sportsbooks in Pennsylvania earned over $2.68 billion in 2024, with DraftKings being one of the market’s largest players.
The company has refrained from public comment for now but has already submitted an official response to the court.