DraftKings, FanDuel Lawsuit Alleges VIP Managers Fueled More Than $130K in Gambling Losses

Lawsuit claims targeted promotions and personal gambling assistants manipulated a Pennsylvania man into making larger and more frequent bets.

A newly filed lawsuit claims that gamblers assigned VIP managers by sports betting apps like DraftKings and FanDuel may feel like they are getting special treatment, but are really starting the process of being set up for crippling addiction and financial loss.

Reynaldo Rivera brought the complaint (PDF) in the U.S. District Court for the Eastern District of Pennsylvania on September 16, naming DraftKings Inc., Crown PA Gaming, Inc., Flutter Entertainment PLC, FanDuel Group Parent LLC, Betfair Interactive US LLC, FanDuel PA LLC and FanDuel Inc. as the defendants.

Rivera alleges DraftKings and FanDuel used targeted promotions, personalized gambling incentives and dedicated account representatives to encourage continued betting, ultimately causing him substantial financial losses.

Online Sports Betting Risks

In 2018, the U.S. Supreme Court issued an opinion that allowed each state and territory to decide for itself whether sports betting was legal within its borders. This led to the rapid rise in popularity of online sports betting apps, also known as sportsbooks, that allow wagers on game outcomes, individual player statistics and on aspects of games during live events.

That popularity has led to concerns over the effects of the online gambling industry and sports betting addiction, which has struck hard at young adults and college-age men.

Some say sites like DraftKings, FanDuel and BetMGM further exacerbate the problems through sportsbook marketing practices that include personalized promotions, targeted advertisements and live betting features which may encourage consumers to place wagers more frequently.

Critics also argue that when the apps’ algorithms detect behavior suggesting someone may be vulnerable to gambling addiction, the developers pounce, giving them special deals and assigning “VIP Managers” who offer more perks in order to convince the gambler to make more frequent, and larger, wagers.

As a result, a number of DraftKings lawsuits and FanDuel lawsuits have been filed in courts nationwide by gamblers who say the online sportsbooks knowingly use deceptive, predatory or unlawful tactics that intentionally encourage gambling addiction.

Sportsbook VIP Manager Allegations

According to the lawsuit, Rivera began using DraftKings and FanDuel once they became legal in Pennsylvania in 2020. He started using the app to play casino-style games, which led to his eventual addiction.

Rivera states that since he began using DraftKings, he has wagered more than $1.6 million, with net losses of about $97,000 as of April 2026. He placed another $841,000 in wagers on FanDuel during the same period, resulting in net losses of about $40,000.

During that time, Rivera says he was deluged with promotions, free casino credits, and other deals that subtly encouraged him to bet larger and larger amounts. This also included the assignment of a VIP Manager, who works like a personal assistant for use of the sportsbooks.

However, Rivera says their real purpose is to entice gamblers with even more special promotions and perks designed to increase their wagering, even if it is clearly causing the gambler financial and mental harm.

“Plaintiff Reynaldo Rivera attempted to quit using Defendants’ addicting apps by attempting placing himself on the self-exclusion list, but Plaintiff was unable to cope with the interactions and outreach from the Defendants and returned to Defendants’ apps.”

– Reynaldo Rivera v. DraftKings Inc. et al.

Rivera’s gambling addiction has allegedly consumed his life, causing financial problems as well as problems in his personal relationships, affecting his ability to maintain a social life.

The complaint presents claims of defective design, failure to warn, negligent design, negligent failure to warn, negligence, intentional misrepresentation, unjust enrichment, and violations of Pennsylvania Unfair Trade Practices and Consumer Protection Laws. It seeks damages for gambling losses, physical harm, gambling addiction disorder and other mental health problems.

Sportsbook Addiction Lawsuits

Rivera’s lawsuit contains nearly identical allegations as many other gamblers who have filed sportsbook addiction lawsuits in recent months, indicating that DraftKings and FanDuel contributed to compulsive wagering, mounting debt and other financial problems for them and others.

Plaintiffs point to the collection of extensive information on their betting patterns and behaviors, even noting sites are aware of time lags when they hesitate to place a wager, and then use that data to exploit their habits, assigning VIP Managers to give them targeted incentives and promotions aimed at deepening their addiction.

Sports betting addiction attorneys are reviewing potential claims for individuals who experienced significant financial losses or psychological injuries after developing problematic gambling behaviors allegedly fueled by sportsbook promotions and rewards. Companies that may be involved in these claims include:

Those who have experienced serious gambling-related financial losses can request a free and confidential case evaluation to determine whether they may be eligible to pursue a sports betting addiction lawsuit. These claims are handled on a contingency fee basis, meaning there are no upfront legal fees or expenses.

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