The class-action lawsuit filed in the U.S. District Court for the Eastern District of Pennsylvania alleges DraftKings targets those with gambling addictions, and will solicit them to spend more and more money gambling.
The lawsuit was filed by Chicago-based civil rights firm Loevy + Loevy on behalf of five people from Pennsylvania.
“DraftKings is earning enormous amounts of revenue by misleading and addicting its users,” the lawsuit states. “DraftKings’s business model has long involved pushing the boundaries of the law, misleading consumers, and luring naïve gamblers into developing addictions.”
DraftKings also uses deceitful promotions, such as “Risk-Free Bets,” which appear to have customers think they can place bets without losing money. However, the lawsuit alleges that the fine print terms are used to lure in these new customers to deposit and gamble with their own money.
When a customer shows signs of a gambling problem, DraftKings allegedly would link that user up with “VIP Hosts” who would use different tactics to try and lure users back.
“DraftKings attracts new users and keeps existing users coming back by advertising an all-upside gambling experience,” the lawsuit states. “In reality, DraftKings has created an all-upside opportunity only for itself.”
Similar lawsuits have been filed in other states like New York, Illinois, New Jersey and Kentucky in suing DraftKings over alleged deceptive practices.
A request for comment was left with DraftKings Thursday afternoon, but we have yet to hear back as of this writing.
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