A group of five Pennsylvania men filed a federal class action lawsuit against DraftKings, accusing the online sportsbook of taking advantage of their gambling addictions through predatory marketing and lax responsible gaming safeguards.
The suit, filed in late April 2025, accuses DK of intentionally targeting people vulnerable to compulsive gambling with deceptive promotions while ignoring self-exclusion requests and allowing significant financial losses.
Key takeaways
- Five Pennsylvania men allege DraftKings used deceptive tactics to exploit their gambling addictions.
- Plaintiffs claim promotional offers were misleading and ignored self-exclusion, causing massive financial losses.
- The lawsuit highlights concerns about online sportsbooks targeting vulnerable users amid rising gambling addiction cases.
According to the plaintiffs, DraftKings offered attractive promotions in the form of "no sweat" bets and deposit matches but concealed very restrictive and complex conditions in the small print. The complaint holds the promotional offers weren't geared toward fair play or recreational engagement but aimed at enticing high-risk users into compulsive gaming patterns.
One plaintiff, a Pittsburgh school teacher earning about $50,000 a year, lost $134,000 through DK, the lawsuit claims. He had to borrow heavily from friends and family after running through his own money, feeling compelled by an addiction to keep gambling, the suit says.
Another man, who lives in Allentown, tried to self-exclude from the site but DraftKings let him restore access to his account. He reportedly lost $350,000 or more after he returned to the online sports betting site. The lawsuit claims this caused a devastating effect on his personal and professional life, such as a job loss, ruined relationships, and a diagnosis of post-traumatic stress disorder and anxiety.
DraftKings accused of targeting addicts
The lawsuit says that rather than acting in users' best interests when they were in distress, DraftKings systematically disregarded red flags and affirmatively induced risky behavior to generate revenue.
Additionally, one of the plaintiffs claims he was allowed to keep gambling through DK despite having enrolled in the Commonwealth of Pennsylvania's statewide self-exclusion program. That's a regulatory tool to keep problem gamblers from participating in online wagering sites.
The suit was brought when statewide gaming activity was at an all-time high. Though the commonwealth broke new records in overall gaming revenue in 2024, much of the growth came from PA real money online casinos and Pennsylvania sports betting sites. According to statistics from the Pennsylvania Gaming Control Board on Pennsylvania online sports betting, DraftKings was the state's second-highest grossing betting operator.
A recent study found the rise in online betting led to a marked increase in individuals seeking help for gambling addiction. Advocates warned that speed, convenience, relentless advertising, and complex bonus structures make them especially dangerous for at-risk populations.
As of May 20, DraftKings hadn't made a public comment on the lawsuit or submitted an official legal reply. The lawsuit requested class action status, which would let other individuals experiencing similar problems join it.
While the lawsuit hangs over the company, DraftKings started the year strong, with revenue growing 20% in Q1 2025.
