DraftKings Sued for Allegedly Exploiting Gambling Addictions

Five men from Pennsylvania have filed a federal class action lawsuit against DraftKings, claiming the online sportsbook took advantage of their gambling addictions through manipulative promotions and weak responsible gaming measures. The suit, filed in April 2025, accuses the company of using deceptive tactics to push compulsive gamblers deeper into financial and emotional distress.

Good to know

• Plaintiffs allege losses as high as $350,000 each.
• DraftKings is accused of bypassing state self-exclusion safeguards.
• The lawsuit comes during record online gambling activity in Pennsylvania.

According to the complaint, DraftKings used enticing promotions like “no sweat” bets and deposit matches to hook users but buried restrictive terms in hard-to-read fine print. Plaintiffs say these offers were not designed for casual play but targeted high-risk users already struggling with compulsive gambling.

One plaintiff, a public school teacher from Pittsburgh, reported losing $134,000—nearly triple his $50,000 annual salary—after being drawn in by promotional bets and feeling unable to stop. The lawsuit says he eventually had to borrow money from friends and family to cope with the financial damage.

Another plaintiff from Allentown says he tried to self-exclude from DraftKings but was later allowed to reactivate his account. After returning, he allegedly lost over $350,000, leading to a cascade of personal crises including job loss, mental health diagnoses, and the collapse of personal relationships.

The lawsuit accuses DraftKings of actively encouraging risky betting behavior instead of stepping in when red flags became apparent. In one instance, a plaintiff said he was able to keep wagering even though he had enrolled in Pennsylvania’s official self-exclusion list, which should have barred him from all legal betting sites in the state.

“At the height of their distress, rather than stepping in or freezing access, DraftKings pushed them further,” the lawsuit alleges, framing the sportsbook’s actions as driven more by revenue than by concern for users’ well-being.

The case arrives as online gaming hits new records in Pennsylvania. In 2024, overall gaming revenue soared, with a significant share of growth coming from online casinos and sportsbooks. DraftKings ranked as the second-largest online sportsbook in the state, according to data from the Pennsylvania Gaming Control Board.

DraftKings has not released any public comment on the lawsuit at the time of writing.