New Jersey woman Lisa D’Alessandro has filed legal proceedings against DraftKings after seeing her estranged husband lose nearly one million in family funds through gambling addiction on its platform, DraftKings. D’Alessandro claims DraftKings helped foster his gambling habit and drive their family’s finances towards ruin.
Her DraftKings username “Mdallo1990,” was said to have bet over $15 million between 2020-2024 on this platform – sources including credit cards and savings accounts set up specifically for their two children, gifts from birthdays, Christmas, baptisms etc.
Escalating Gambling Habits
As early as 2015, Mdallo1990’s gambling expenses didn’t surpass $3,775. By 2023 however, these had skyrocketed to over seventy percent of his annual income and consumed most of DraftKings’ share of his bankroll – including being encouraged by this platform to place increasingly larger bets until their finances had been depleted completely. The lawsuit alleges this caused irreparable harm to Mdallo1990 and his family financially.
D’Alessandro alleges that DraftKings employed user data to target high-value gamblers like her husband by enrolling him into its “VIP Private Group.” DraftKings then offered numerous inducements like free bets, loss coverages and lavish gifts in return for his excessive gambling habits.
Negligence and Lack of Oversight
DraftKings was attacked for failing to conduct proper due diligence by filing this suit, alleging that through daily communication with Mdallo1990 they should have identified signs of his problem gambling and followed anti-money laundering laws that mandate high rollers verify their source of funds; according to this argument DraftKings should have employed rigorous checks which would have stopped large sums flowing in from untrustworthy sources.
Reflecting on Duty of Care
This legal battle mirrors one filed by another gambler against BetMGM in New Jersey alleging negligence for drawing in problem gamblers with continuous incentives; in that case, however, despite allegations of negligence in recruiting problem gamblers through continuous offers of incentives from BetMGM casinos in that case as well, the court ultimately found no obligations under either New Jersey Casino Control Act nor common law duty of care that require casinos to prevent problem gamblers from gambling.
DraftKings’ ongoing legal action raises important issues regarding their responsibility to combat problem gambling and how much accountability should rest with their operators for safeguarding customer welfare.
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