Gambling Addiction Lawsuit Filed Against Sports Betting Platform DraftKings

DraftKings lawsuit alleges that the platform asked the plaintiff if she needed help for her gambling addiction, but continued offering incentives to encourage more betting while waiting for her response.

Sports betting platform DraftKings is facing a lawsuit claiming the company has designed its VIP program to capitalize on customers’ gambling addictions.

The complaint (PDF) was filed in the U.S. District Court for the Southern District of New York on February 12 by Kavita Fischer, a psychiatrist who alleges that DraftKings, Inc. knew she had a gambling problem, but intentionally exacerbated her addictive behaviors.

Gambling addiction can involve symptoms such as constantly thinking about gambling, increasing bet amounts, chasing losses, and feeling irritable when trying to cut back. Over time, it can lead to financial ruin, legal troubles, job loss, strained relationships and even suicidal thoughts.

With the legalization of sportsbook betting in many states, gambling addiction has become a more pervasive problem, and lawsuits now suggest that the business model at Draft Kings capitalizes on addictive behaviors to keep their customers interested and playing.

As a result, multiple DraftKings gambling addiction lawsuits have been filed by individuals and families, mirroring allegations raised in a number of social media addiction lawsuits over the past year, claiming that popular internet platforms are employing deceptive algorythms and addictive designs, which are directly causing harm for consumers.

In her lawsuit, Fischer claims that she deposited $208,130.50 into her DraftKings account between January 1, 2023 and April 29, 2023. During that approximate four month period, she allegedly lost $153,412.51.

DraftKings also knew that during that period, Fischer placed approximately 60,327 bets. Moreover, Fischer was a member of DraftKing’s VIP platform, which provided her with a dedicated “VIP host”, who Fischer asked at one point for a company loan to help cover her mortgage.

However, despite reaching out to Fischer to inquire about her gambling addiction, the lawsuit alleges that Fischer’s VIP host continued enticing her with emails designed to encourage her to gamble.

“The emails sent by DraftKings to Dr. Fischer were calculated to entice problem gamblers, including Dr. Fischer, to deposit money in frequencies and amounts which initiated, sustained and/or exacerbated the problem gambler’s addiction,” her complaint states. “DraftKings knew that the emails sent to Dr. Fischer were, in fact, initiating, sustaining and/or exacerbating her gambling addiction.”

Fischer’s lawsuit names DraftKings, Inc. as the sole defendant, alleging negligence and intentional infliction of emotional distress. She is seeking compensatory damages and punitive damages.

Other individuals and families have filed lawsuits against DraftKings in recent years. A separate complaint (PDF) filed in the Superior Court of New Jersey on December 5, 2024, alleges that in only four years, a New Jersey man placed $15 million in bets on the DraftKings platform, which was money he stole from his wife and children.

Gambling Addictions May Require Public Health Investment

As these types of gambling addiction incidents continue to grow amid the adoption of sports betting, a new study published in the journal JAMA Internal Medicine on February 17, indicates that gambling addictions could wind up requiring a significant public health investment in the United States.

The study was conducted by a team of researchers from the University of California, San Diego, La Jolla, who looked at the differences between descriptions of gambling addiction and sports wagering before and after sportsbook gambling was legalized across a majority of U.S. states.

The research team, led by Atharva Yeola, discovered that overall wagers increased from $4.9 billion in 2017, when only one state had legalized sportsbook gambling, to $121.1 billion in 2023, when it had become legal in 38 states.

In addition, there were 23% more online searches across the U.S. looking for help for gambling addiction following Murphy v. National Collegiate Athletic Association, which was a court case that legalized sportsbook betting.

As a result, Yeola came to the conclusion that access to sportsbook betting highlights a need for the U.S. to look more closely, and potentially address its citizens’ gambling addictions.