Appeal Challenges Dismissal of DraftKings Lawsuit Over Gambling Addiction

Judge ruled that Pennsylvania puts no duty on sportsbooks or casinos to protect consumers from gambling addiction, which may have widespread impact on a growing number of DraftKings lawsuits now being pursued.

A group of men pursuing a gambling addiction lawsuit against DraftKings and other online sportsbooks have filed an appeal in the Third Circuit, seeking to restore their case after it was dismissed late last month by a U.S. District Court Judge.

The DraftKings lawsuit was originally filed in July 2025 by Kenneth Macek, Matthew Harner, Avi Setton, Lionel Alicea and Robert Walker, who are all residents of Pennsylvania. They allege the site targeted them with advanced algorithms that intentionally analyzed consumers for potential gambling problems, and then exploited them, resulting in gambling addiction and huge financial and personal losses.

The plaintiffs sought class action status for Pennsylvania users and individuals nationwide who participated in DraftKings or Golden Nugget casino promotions, including deposit match offers and “risk-free” or “no sweat” bets. They alleged these promotions were misleading. The proposed class also included users who developed gambling addictions while using the platforms.

Similar gambling addiction lawsuits have been brought against other platforms as well, such as FanDuel and BetMGM. Each of the complaints raise similar allegations, arguing that instead of offering support or safeguards, these online gambling sites target inexperienced users with personalized promotions, loyalty perks and psychological triggers that normalize betting larger and larger amounts over time. The plaintiffs allege this has led to an explosion of gambling addiction nationwide.

Pennsylvania DraftKings Lawsuit

Last month, U.S. District Judge Joseph Leeson, Jr., in the Eastern District of Pennsylvania, granted a motion to dismiss the case filed by defendants. The gambling sites argued that they had no “duty of care to players who may be at risk of developing a gambling addiction,” noting that no such duty has been recognized by Pennsylvania courts.

The judge predicted that the Pennsylvania Supreme Court was very unlikely to impose such a duty on casinos or sportsbooks to protect gamblers from their own actions, and that his court could not expand on those existing duties outside the boundaries of established state law.

“No Pennsylvania state court, nor any federal court applying Pennsylvania law, has found that casinos (or online sportsbooks) owe a duty of care to compulsive gamblers. However, in analyzing the casino-gambler relationship, a case from this District reasoned that, under Pennsylvania law, a casino did not owe a duty of care for the emotional wellbeing of a gambler.”

– U.S. District Judge Joseph Leeson, Jr.

The plaintiffs immediately filed a notice of appeal (PDF) with the U.S. Court of Appeals for the Third Circuit on April 17, seeking to have the ruling overturned. However, they have yet to file an actual appeal brief, which would outline the basis for why the judgment should be changed, and how they believe Judge Leeson erred in his decision.

While the ruling will not have any direct impact on other lawsuits against DraftKings, FanDuel and other online sportsbooks, the questions of law raised in this complaint are likely to be repeated throughout cases brought in various different states nationwide in the coming months.

Gambling Addiction Lawsuits

Most sports betting addiction lawsuits have been filed by individuals who say the platforms targeted them once they were identified as potentially vulnerable to addiction. The sites then flooded them with personalized promotions, loyalty rewards and other psychological tactics designed to normalize betting and downplaying the financial risks.

Gambling addiction lawyers anticipate hundreds of such claims, or more, will be filed in the coming weeks and months, and say investigations into potential cases are ongoing nationwide. 

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained.

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