DraftKings Gambling Lawsuit Alleges Illegal Scheme Fueled Addiction

Lawsuit claims DraftKings employees illegally placed bets for man in an out-of-state casino, contributing to approximately $600,000 in gambling losses.

A Massachusetts man has filed a lawsuit alleging DraftKing employees disregarded state gambling laws by offering to personally take his sports wagers to an out-of-state casino and place them for him.

The complaint (PDF) was brought by Samuel Cannarozzi in Massachusetts Superior Court on October 15, naming DraftKings Inc., RMH NH LLC, doing business as The Brook, and Rach Mesquite Casino Inc. as defendants.

Cannarozzi claims he “lost everything he owned” as a result of DraftKings violating state and federal gambling laws, as well as its own policies, in an effort to exploit someone it knew was a gambling addict.

Sportsbook Gambling Risks

DraftKings is one of several online sports betting apps that have risen to prominence after a 2018 Supreme Court ruling that allowed each state to decide for itself whether sports betting could be legalized. Most states, the District of Columbia and Puerto Rico, have already agreed to allow sports gambling in their jurisdictions.

As a result, apps like DraftKings and FanDuel allow consumers to place wagers from home and on live events, instead of having to travel to a casino. These apps then send promotions, like “free bets” bonus rewards and VIP programs, which critics say are targeted toward those who appear to be susceptible to gambling addiction.

A number of consumers, especially young men, have filed DraftKings gambling lawsuits and FanDuel gambling lawsuits in federal and state courts across the country. Claims maintain that the sportsbook operators intentionally use algorithms to analyze and target potential gambling addicts to encourage them to make larger and more frequent wagers, despite the obvious financial harm it causes.

DraftKings Illegal Gambling Allegations

According to the complaint, DraftKings encouraged Cannarozzi to continue placing large wagers through its VIP program, offering personalized promotions, special treatment and direct access to company representatives who allegedly had a financial interest in keeping him gambling.

One representative, identified as Tucker, reportedly told Cannarozzi he had been selected for VIP status because his recent wagering activity “looked strong.” However, Cannarozzi alleges that the program was designed to encourage heavy gamblers to continue betting, rather than reward customers for their success.

At one point, Cannarozzi attempted to limit his gambling by requiring himself to travel to The Brook casino in New Hampshire whenever he wanted to place a wager. The trip involved a 90-minute drive from his Massachusetts home, creating an inconvenience he hoped would help control his betting habits.

However, the lawsuit claims DraftKings representatives offered to eliminate that obstacle entirely.

Another employee, identified as Michael Walsh, allegedly explained that he and a worker at The Brook lived in Massachusetts and regularly traveled to the New Hampshire casino. Rather than making the drive himself, Cannarozzi was told he could submit wagers by phone or text, and the employees would place the bets on his behalf.

The arrangement allegedly allowed Cannarozzi to gamble from his Massachusetts home despite state restrictions on placing those wagers. Casino employees would then send photographs of the betting tickets, while any winnings could either be applied toward future bets or delivered to him during an in-person meeting.

According to the complaint, the arrangement continued for nearly two years, with Cannarozzi exchanging approximately 400 text messages with Walsh and another DraftKings employee between November 2023 and October 2025.

The lawsuit alleges the employees went to considerable lengths to accommodate his gambling activity. Some wagers were reportedly placed through other customers’ high-roller accounts to obtain promotional benefits, while employees allegedly offered to remain at the casino after normal operating hours to accommodate bets on West Coast sporting events.

Cannarozzi claims the employees received tips ranging from $200 to $350 for their assistance and were aware that the arrangements violated state gambling laws.

During that same period, Cannarozzi says he accumulated approximately $600,000 in gambling losses, which he attributes to the unlawful betting arrangements and DraftKings’ efforts to encourage continued wagering.

“As a result Cannarozzi lost everything he owns, All of these losses were enabled by the unlawful conduct of DraftKings and The Brook.”

— Samuel Cannarozzi v. DraftKings Inc. et al.

The lawsuit raises claims of breach of contract, breach of fiduciary duty, intentional and negligent infliction of emotional distress, and violations of Massachusetts gaming laws. Cannarozzi seeks compensatory and punitive damages.

Gambling Addiction Lawsuits

Cannarozzi’s claim is one of an increasing number of gambling addiction lawsuits filed against sports betting operations nationwide, which individuals say are using high technology to exploit signs of gambling addiction, ruining lives and livelihoods for the sake of profits.

DraftKings gambling addiction attorneys are reviewing potential claims for those who experienced significant financial losses or psychological damage due to addictive gambling behaviors, allegedly fueled by DraftKings and other sportsbook promotions and rewards. Companies that may be involved in these claims include:

Individuals who experienced serious gambling-related 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.

To stay up to date on this litigation, sign up to receive sports betting addiction lawsuit updates sent directly to your inbox.