DraftKings Sued After Father Gambles Away $1 Million.
A New Jersey father lost nearly $1 million he stole from his wife and two kids due to a gambling addiction, which his family claims was deliberately encouraged by the online sportsbook, DraftKings. The civil lawsuit, filed recently by Lisa D’Alessandro, alleges that her husband used the family’s finances to fuel his addiction, leading to the depletion of their savings and credit cards, as well as funds belonging to their children.
The Gambling Addiction and Family Fallout
According to the lawsuit, Lisa D’Alessandro’s husband, identified only by his DraftKings username “Mdallo1990,” began using the platform in 2020. DraftKings had elevated Mdallo to “Onyx Elite level status,” at which point VIP hosts began to extend various offers to him, including a complimentary vacation and a collection of premium Apple products, alongside more commonplace items such as DraftKings-branded whiskey glasses, as stated in the complaint. At the start, he placed modest bets, totaling just $3,775 a month. By 2023, however, his gambling had escalated to a staggering $125,000 per month.
In her legal complaint, Lisa claims that DraftKings not only failed to intervene but also played a significant role in encouraging her husband’s escalating addiction. She argues that the platform systematically targeted him with personalized incentives, bonuses, and rewards to keep him gambling.
How DraftKings Allegedly Exploited a Problem Gambler
D’Alessandro’s complaint asserts that DraftKings actively sought out users like her husband—those with high betting potential—using data to identify them and recruit them to its “VIP Private Group.” Mdallo1990 was assigned four VIP hosts who regularly interacted with him, even though they were aware of his marital status, parental responsibilities, and gambling issues.
These hosts offered Mdallo1990 various incentives, such as free bets, credit bonuses, gifts, and exclusive experiences, like vacations and premium products, to keep him engaged on the platform. As the lawsuit claims, DraftKings’ actions appeared to be geared toward encouraging higher stakes and increasing the company’s revenue, regardless of the potential harm to its users.
Negligence and Fraud Allegations
The lawsuit alleges that DraftKings failed to conduct the proper due diligence in verifying the source of Mdallo1990’s gambling funds. Despite being aware that he was gambling well beyond his financial capacity, DraftKings reportedly allowed him to continue placing large bets without verifying the legitimacy of his income. The lawsuit also claims that DraftKings neglected to provide information about gambling addiction resources to their most vulnerable users.
The complaint accuses DraftKings of negligence, fraud, and violations of the New Jersey Consumer Fraud Act. It seeks the return of the funds that D’Alessandro claims were misappropriated by her husband, including nearly $1 million of the family’s money.
Online Gambling and Its Increasing Risks
The case highlights growing concerns about the rise of online gambling and its impact on households. With online sports betting now legal in 39 states, experts have warned about the risks of problem gambling, particularly with platforms that incentivize higher stakes and bigger bets. Research indicates that sports betting, specifically, has become one of the fastest-growing sectors of the gambling industry, which some experts believe depletes finances more quickly than other forms of gambling.
D’Alessandro’s attorney, Matthew Litt, expressing the devastation that this situation has caused the family. “You believe you are saving for your future and that of your family, only to discover that it has all vanished.” He added that the family is fighting to recover what they can, and that D’Alessandro’s children, both under the age of 10, are struggling to come to terms with the financial fallout.
Similar Lawsuits Against Online Gambling Platforms
This lawsuit is part of a broader trend of legal actions against online gambling platforms. In October, a former Jacksonville Jaguars employee filed a similar lawsuit against FanDuel, claiming the company enticed him into gambling through lavish rewards, eventually leading him to embezzle millions.
The Consumer Fraud Act is a law designed to protect consumers from deceptive, unfair, or fraudulent business practices. It ensures that companies engage in honest advertising, fair transactions, and transparent sales of goods or services. The act protects individuals from misleading advertisements, false claims, or deceptive conduct by businesses. It targets unethical practices such as price gouging, false advertising, or misrepresentation of products or services. Victims of consumer fraud have the right to seek compensation, often with the possibility of receiving treble (triple) damages. The law is typically enforced by state attorneys general, although consumers themselves may also file lawsuits. Overall, the Consumer Fraud Act aims to promote fairness, transparency, and integrity in business, providing consumers with a legal path to hold companies accountable for dishonest practices.
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