DraftKings Lawsuit Seeks Discovery Into Gambling Algorithms, Bonuses and VIP Rewards

Sportsbook wants the judge to dismiss the lawsuit, claiming DraftKings is not a product subject to Illinois liability laws.

An Illinois man seeks access to data on the DraftKings algorithms he says were used to drive him into gambling addiction and nearly taking his own life.

The DraftKings lawsuit was filed by Dane Miller in late June, alleging the online sportsbook uses sophisticated data collection and analysis to identify customers whose behavioral traits suggest they are more likely to gamble frequently and place larger bets. According to the complaint, many of those same traits can also indicate a heightened risk of developing a gambling addiction.

Miller maintains that DraftKings could use this information to warn customers about potentially dangerous betting habits and help prevent gambling addiction. Instead, the lawsuit alleges the company uses the data to encourage increasingly risky wagers and maximize customer losses, leaving some individuals facing severe financial hardship, damaged relationships and serious mental health problems.

Sportsbook Gambling Addiction

A 2018 Supreme Court decision gave states the authority to legalize sports betting, which is now permitted in 39 states, Washington, D.C., and Puerto Rico.

As a result, online sports betting operators, or sportsbooks like DraftKings, FanDuel and BetMGM, quickly became popular. Many of these platforms allow live betting while sports events are in progress, not just on the outcome of games, but on scores, particular plays or player performance as well.

Along with this rise in prominence has come growing concerns over sports betting addiction. Critics argue that the apps use aggressive and deceptive promotional marketing, as well as AI-powered algorithms that psychologically profile customers.

Young men like Miller are believed to be particularly susceptible to these tactics, with many on their own for the first time and inexperienced in managing their finances. Younger adults in general are also more at ease with making on-the-spot online transactions when compared to their older peers.

Many of those who claim to have developed gambling addictions have filed DraftKings lawsuits, as well as similar FanDuel lawsuits and other sportsbook lawsuits. Each claimant alleges the sports betting apps intentionally designed their products to encourage self-destructive habits in consumers.

DraftKings Compulsive Gambling Allegations

Miller claims he has wagered in excess of $2 million since opening an account in October 2020 on DraftKings, leading him to lose his job, relationship and savings, until he was hospitalized for suicidal ideation. The lawsuit argues that DraftKings meant that as a feature, not a bug.

According to Miller, DraftKings intentionally employs algorithms for the specific purpose of psychoanalyzing customers and then using that data to target them with the specific types of promotions that will stoke compulsive gambling habits. Bettors are allegedly hit with push notifications, e-mails, free bets and more without mercy.

Miller was even given “VIP” status, which meant there were agents specifically assigned to him to get him to bet more frequent and riskier bets. Some critics have alleged that sportsbooks like DraftKings specifically target gamblers they see as spending and losing the most, while not making any offers or notifications of special offers to those who have been winning more than losing.

DraftKings Lawsuit Discovery Request

Miller’s lawsuit was assigned to U.S. District Judge Manish S. Shah in the Northern District of Illinois. On October 9, Miller, DraftKings Inc. and Casino Queen Inc. filed a joint initial status report (PDF) to bring the judge up to speed on the DraftKings lawsuit.

In the report, Miller’s attorneys indicated they would seek access to much of DraftKing’s algorithmic data, which could reveal key information on how the company collects and uses such data.

“Plaintiff anticipates discovery related to the design, marketing and promotion of Defendants’ product, including but not limited to the algorithms, specifications for any machine learning platforms, data inputs and outputs, standard operating procedures, bonus distribution, promotions, VIP/concierge programming, and software development kits.”

– Joint Initial Status Report

However, defendants filed a motion to dismiss (PDF) Miller’s complaint on October 2, arguing that a decision on discovery should be put on hold until that motion is resolved. They have challenged the lawsuit on multiple grounds, such as whether the company’s activities are subject to Illinois products liability law and whether the DraftKings lawsuit was filed in a timely manner.

In addition, Miller also filed a motion for reassignment (PDF) on October 5, seeking to have the case transferred to U.S. District Judge Robert W. Gettleman, who is currently overseeing another DraftKings lawsuit, which he has ordered into mediation.

Counsel from both sides recommended Miller’s response opposing the motion to dismiss be due by November 13, with DraftKings’ reply due by December 7, 2026.

Sportsbook Addiction Lawsuits

Miller’s case will likely be closely watched as more consumers who feel they were exploited by DraftKings, FanDuel and other sites continue to file gambling addiction lawsuits. All say they have found themselves in financial and personal ruin due to the use of data-driven psychological algorithms for which they had no defense.

Sportsbook addiction lawsuits continue to be investigated nationwide for those who developed compulsive betting habits while using any of the various sportsbooks and platforms listed below:

To find out whether you qualify for a sportsbook 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 in your case.

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