DraftKings Faces Class Action Lawsuit Over Sale of Consumer Data

Case comes as a number of other DraftKings lawsuits are already moving forward, involving allegations the online sportsbook employs aggressive promotions and game-like features that prey on vulnerable gamblers.

A proposed class action lawsuit alleges that DraftKings secretly collects and shares personal information from visitors to its website with third-party data brokers, allowing the companies to identify users, track their online activity and build consumer profiles without their knowledge or consent.

The complaint (PDF) was filed by California resident Dana Hughes in the U.S. District Court for the Central District of California on June 22, raising further concerns about the marketing practices of the popular online sportsbook, which already faces lawsuits that allege it preys on users with known gambling addictions as part of an effort to increase profits. 

Hughes claims that DraftKings is also violating California privacy laws by deploying tracking technology that captures identifying information from website visitors.

Online Gambling Risks

Online sportsbooks like DraftKings, Fanduel, BetMGM and others have exploded in popularity in recent years, after the U.S. Supreme court cleared the way for individual states to legalize gambling apps.

Following aggressive advertising and the employment of complex algorithms designed to encourage increased gambling activities, the sportsbook operators have faced growing legal scrutiny and claims alleging they specifically target users with signs of gambling addiction problems to increase profits.

These concerns have led to a series of DraftKings lawsuits, FanDuel lawsuits and similar claims against other betting platforms, including BetMGM and Caesars. Many of the cases allege these companies are actually causing gambling addictions to develop through the use of promotional offers, so-called “risk-free” bets and game-like app features that encourage frequent betting.

DraftKings Data Privacy Allegations

According to Hughes’ complaint, DraftKings embedded tracking software supplied by data brokers NextRoll, The Trade Desk and Comscore into its website, enabling those companies to collect browser and device information from visitors as soon as they accessed the site.

The lawsuit alleges the software used a technique known as “browser fingerprinting,” which compiles dozens of technical details about a visitor’s device, browser settings, location and other characteristics to create a unique identifier. That information can then be matched with existing consumer databases to identify users, monitor their browsing activity across unrelated websites and deliver targeted advertising.

Hughes claims she visited the DraftKings website on December 28, 2025, when her identifying information was allegedly transmitted to multiple third-party data brokers without her authorization.

The complaint contends DraftKings profited from the arrangement by allowing the companies to collect consumer data that could be used to create advertising profiles and deliver personalized marketing.

“Defendant has installed and deployed data broker software on the Website to secretly collect data about visitors, their devices, locations and views of webpages to identify who they are, target them with unwanted marketing and track their internet browsing on an ongoing basis.”

— Dana Hughes v. DraftKings Inc.

Hughes maintains that DraftKings never obtains users’ consent before allowing their information to be collected or shared.

The proposed DraftKings class action seeks to represent California residents who visited the website and were allegedly subjected to the tracking technology. Hughes claims the data collection violates California’s Trap and Trace Law, which generally prohibits the installation or use of devices that capture identifying routing or signaling information from electronic communications without legal authorization. The complaint also raises a common law claim for intrusion upon seclusion, alleging the tracking constituted an unlawful invasion of users’ privacy.

The lawsuit seeks statutory damages of $5,000 per violation under the California Invasion of Privacy Act, along with punitive damages, restitution, disgorgement of profits and an injunction prohibiting DraftKings from continuing the challenged practices.

Sports Betting Privacy Concerns

The lawsuit adds another legal challenge for DraftKings as online sports betting companies continue to face increasing scrutiny over their collection and use of consumer information.

According to multiple DraftKings and FanDuel gambling addiction lawsuits filed nationwide, many online sportsbooks use sophisticated data analytics and behavioral algorithms to monitor users’ betting habits and deliver personalized promotions intended to encourage more frequent wagering and larger bets.

In light of these concerns, sports betting addiction lawyers are currently reviewing claims by individuals who experienced substantial financial losses allegedly linked to the marketing practices, promotional incentives and engagement features used by major online sportsbooks.

Lawsuits are being investigated involving a number of online wagering platforms, including:

Individuals who believe they may have developed a gambling addiction or suffered significant financial harm after using one of these platforms can request a free case evaluation to determine whether they may be eligible to pursue a sports betting lawsuit. Attorneys handling these cases work on a contingency fee basis, meaning there are no upfront legal fees and compensation is owed only if a recovery is obtained.

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