Pennsylvania men lost hundreds of thousands gambling on DraftKings. Now they're suing.
The federal lawsuit claims that, instead of trying to help people in the throes of compulsive gambling, DraftKings targets and exploits these individuals. The company also extends promotional deals that offer "no sweat" bets or deposit matches, while hiding convoluted conditions in the fine print, according to the lawsuit.
More: Pennsylvania gaming revenues hit record high in 2024 for one main reason
DraftKings 'uses these tactics to identify and cultivate the people it wants on its platform: those who are most susceptible to these sorts of promotions and most likely to lose a lot of money betting,' the complaint filed in late April contends. 'In other words, marks.'
The suit notes that online sportsbooks such as DraftKings have exploded in popularity since the U.S. Supreme Court's 2018 decision opening the door to this betting. DraftKings is Pennsylvania's second-highest grossing sports betting platform through a partnership with Hollywood Casino at the Meadows, according to state data. It also owns an online casino.
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DraftKings as of May 20 had not filed a court response to the complaint, and its spokespeople did not immediately answer a request for comment.
One of the plaintiffs, a Pittsburgh teacher who earned about $50,000 a year, borrowed money from his loved ones to keep gambling after he'd drained his own bank account. In total, he lost $134,000 on DraftKings, the lawsuit states.
After recognizing his gambling had become a problem, an Allentown man asked DraftKings to shut down his account permanently. Instead, the man was able to access it again and lost more than $350,000 on DraftKings as a result, the suit alleges.
The lawsuit said this man's 'life was ruined gambling on DraftKings,' reporting that he'd lost friends and a job and suffers from post-traumatic stress disorder and anxiety.
Another plaintiff continued to gamble on the app even after adding himself to a state self-exclusion list, which should have locked him out of gaming sites, according to the complaint.
A Chicago-based civil rights law firm filed the lawsuit on behalf of the five men. The office, Loevy + Loevy, has also sued DraftKings in Illinois, Kentucky, New Jersey and New York.
More: Inside the high-stakes, high-risk world of sports betting and how it's gripping young men
If you or someone you know is struggling with gambling, call or text 1-800-GAMBLER, operated by the National Council on Problem Gambling.
Bethany Rodgers is a USA TODAY Network Pennsylvania investigative journalist.
This article originally appeared on Erie Times-News: PA men sue DraftKings, alleging deceptive promotions
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