Sports betting operator DraftKings is under water again, facing another federal lawsuit filed by five people from Pennsylvania. The lawsuit claims that the online sports betting company knowingly used manipulative marketing tactics to exploit individuals struggling with gambling addiction.
Vulnerable players targeted: suit
The suit, filed in the US District Court for the Eastern District of Pennsylvania, alleges that the company ignored safe gambling practices, knowingly profiting off vulnerable users. The plaintiffs, represented by Chicago-based civil rights firm Loevy & Loevy, claim that DraftKings often promotes its services using catchy phrases like “no sweat bet” or “risk-free first wager” that hid tough rules in small print, as reported by local media. They claim these deals were not just for fun betting but aimed to target user who may be vulnerable.
One of the plaintiffs, a schoolteacher from Pittsburgh earning $50,000 a year lost $134,000 on the platform. He said after he used up his personal money, he asked his friends and family to help him keep gambling. Another plaintiff, who tried to voluntarily close his DraftKings account due to addiction concerns, says he was later allowed back. He eventually lost over $350,000 and stated that his gambling led to serious mental health issues including anxiety and post-traumatic stress disorder (PTSD).
The suit claims that the online sports betting company did not protect vulnerable users. This breaks both ethical rules and Pennsylvanian law requiring transparent and fair treatment of consumers. The complaint says some plaintiffs were able to gamble despite enrolling in the state’s self-exclusion program—designed to protect vulnerable people who have gambling problems. The plaintiffs are seeking a jury trial and aim to turn the case into a class action, potentially allowing thousands of affected users to join.
Another suit ongoing
The latest lawsuit comes amid DraftKings facing another patent infringement suit filed in New Jersey federal court concerning its micro-betting offerings. The lawsuit was brought by Micro-Gaming Ventures, LLC, a Texas-based entity. Filed on Friday, 9 May 2025, in the US District Court for the District of New Jersey, the complaint alleges that DraftKings’ sportsbook platform infringes on five specific patents. These patents reportedly relate to technology underpinning micro-betting and location-based wagering functionalities.
Recently, DraftKings announced a 20 percent increase in its revenue in the first quarter of the year, driven by more active users and rising betting volume. But not everything was cause for celebration. The famous college tournament, March Madness, surprised— not because of underdogs, but because of the lack of them. That caused the company to lose margin and, on top of that, revise its projections for the year.
