A group of five Pennsylvania residents has filed a federal class action lawsuit against major online sports betting operator DraftKings, accusing the company of exploiting individuals with gambling addictions through misleading marketing strategies.
Legal Challenge Targets “No Sweat” Bet Promotions
Filed in the U.S. District Court for the Eastern District of Pennsylvania, the lawsuit alleges that DraftKings neglected responsible gambling standards and profited from vulnerable users. The plaintiffs, represented by civil rights law firm Loevy & Loevy based in Chicago, argue that DraftKings’ promotional offers—particularly so-called “risk-free” or “no sweat” bets—were designed to target high-risk individuals rather than casual bettors. These promotions allegedly included complex terms hidden in fine print, making them far from risk-free in practice.
According to the complaint, one plaintiff—a Pittsburgh schoolteacher with an annual income of around $50,000—lost $134,000 on DraftKings’ platform. After exhausting his personal funds, he reportedly borrowed money from friends and family to continue gambling. Another plaintiff from Allentown, who had previously asked to permanently close his account due to concerns about addiction, claims he was allowed to rejoin and eventually lost over $350,000. His gambling reportedly led to serious mental health issues, including anxiety and post-traumatic stress disorder.
The lawsuit also highlights that at least one individual was able to continue gambling through DraftKings even after enrolling in Pennsylvania’s self-exclusion program—a system meant to block access to betting platforms for individuals struggling with addiction.
Marketing Practices Under Ethical and Legal Scrutiny
Critics of DraftKings argue the company uses data-driven targeting to identify users with addictive tendencies and market aggressively to them. The lawsuit claims this approach is both unethical and in violation of Pennsylvania consumer protection laws.
The legal action comes as Pennsylvania’s iGaming market is experiencing record growth. In 2024, the state saw a significant rise in online gambling revenue, with DraftKings emerging as the second-largest sportsbook by earnings. However, this financial success has brought increased concern about the industry’s safeguards—or lack thereof—for problem gamblers, especially as mobile betting becomes more widespread and accessible.
As of May 20, DraftKings had not responded publicly or filed any legal rebuttal to the claims. Plaintiffs are seeking a jury trial and aim to establish a broader class action, which would allow others with similar experiences to join the case.
This lawsuit underscores growing concerns over the ethical responsibilities of online gambling companies. It highlights the tension between the rapid expansion of digital betting and the need for stronger consumer protections, particularly for those vulnerable to addiction.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
