Lawsuit alleges DraftKings targets gambling addicts
In a story first reported by The Wall Street Journal, DraftKings has come under fire for allegedly running an invite-only VIP program designed to target gambling addicts. In a lawsuit, Pennsylvania psychiatrist Dr. Kavita Fischer argues that DraftKings “breached its duty of care” by encouraging her to gamble despite repeated signs and communications on her part indicating her gambling addiction.
gambling increased rapidly due to “incentives, gifts, bonuses, and awards”
According to the complaint, company data of her transactions “showed exponential growth in the deposits, frequency, and in amounts and frequencies which only an addicted gambler could deposit and gamble.” Fischer claims that her activity surged once she was upgraded to the VIP program on December 8, 2022, after which she made 446 deposits totaling more than $208,000 from January 1 to April 2 and lost over $153,000. The lawsuit asserts that Fischer’s gambling increased rapidly due to “incentives, gifts, bonuses, and awards” given to her by a personal VIP “host.”
Personal responsibility vs. DraftKings’ responsibility
While some would argue Fischer shouldered the responsibility for her own gambling actions, Fischer comes with receipts to prove that DraftKings knew her mounting losses and increasing addiction were causing “severe financial damage and emotional distress” to herself.
One example from the complaint includes Fischer emailing her VIP host in early January to state that she “should probably use (her) rational brain and switch to a table game or quit gambling completely” while also asking for “some VIP love based on (her) donations to DK this year.” The lawsuit alleges that the company’s response to her cry for help was to send her additional casino credits the same day.
The lawsuit alleges an additional incident occurred on March 21, when she asked DraftKings for a loan to cover her mortage. In the email, she wrote: “Probably means I need to quit gambling soon also.”
Troubling responses by DraftKings
Fischer’s VIP host responded in an email, saying: “I want to check in with you, are you still playing within your means/budget? We take responsible gambling very seriously here, and never want someone to be playing outside there (sic) comfort zone. Ensuring everyone is engaging in safe and responsible play is my number one priority.”
targeted and preyed on Plaintiff with incentives, credits, and gifts”
While the email in isolation indicates DraftKings took Fischer’s increasingly problematic gambling habit seriously, Fischer asserts that she next received six emails over the course of the next week “containing enticements to continue and raise her deposits and gambling.” The lawsuit alleges that the company “intentionally targeted and preyed on Plaintiff with incentives, credits, and gifts to create, nurture, expedite, and/or exacerbate her addiction despite and/or because of their knowledge of her addiction.”
Fischer is asking for compensatory and punitive damages, plus interest and legal costs.
DraftKings also faces separate legal action, first in a class action in New Jersey arguing that the company utilizes advertising practices to convert problematic gamblers into addicts. A second potential class action in New York alleges the company uses misleading advertising to attract new players.