In April 2025, the Chicago-based law firm Loevy + Loevy filed a class-action lawsuit on behalf of five individual Pennsylvania plaintiffs against DraftKings.
The lawsuit alleges DraftKings caused addiction harm. The company is a dominant player in the Pennsylvania online gambling market, which was worth $2.48 billion in the 2024-25 fiscal year.
The suit was filed in the U.S. District Court for the Eastern District of Pennsylvania. It alleges that the online sportsbook and casino “deceives users and misleads them” into betting and losing large amounts of money, in violation of state and federal laws.
Pennsylvania joins a growing list of jurisdictions—including Illinois, Kentucky, New Jersey, and New York—where Loevy is suing DraftKings over its allegedly deceptive practices and disregard for problem gambling in many users.
“DraftKings is earning enormous amounts of revenue by misleading and addicting its users,” the complaint contends. “DraftKings’ business model has long involved pushing the boundaries of the law, misleading consumers, and luring naïve gamblers into developing addictions.”
Studies on sports betting addiction statistics show that 30-40% of online bettors experience problems with their play.
DraftKings Self-Exclusion Violations Alleged
Among the many allegations in the DraftKings Pennsylvania lawsuit, the complaint contends that DraftKings knowingly and intentionally targets individuals with addictions.
The lawsuit claims that DraftKings targets users who are on state self-exclusion lists for addicted gamblers and users who had previously directly asked the company to suspend or close their accounts to help them stop gambling.
“DraftKings not only allows these players to gamble but actively solicits them to gamble larger and larger sums of money despite knowing they are struggling to control their gambling addictions,” the law firm said.
At the core of the lawsuit are specific DraftKings promotions that the plaintiffs allege hide features that are designed to inculcate problem gambling habits in new users.
These include DraftKings’ so-called bonus bets, which “lead new customers to believe they can place a bet without risking losing their money,” and the company’s widely publicized deposit match offers for online casino games.
In reality, the complaint alleges, these matching funds are contingent upon complicated “playthrough requirements.” The fine print can require players to bet 20-30 times the combined deposit and match amounts within a seven-day window.
“These deceitful promotions are designed to turn casual gamblers into serious addicts,” said attorney Isaac Green, one of the lawyers behind the case.
DraftKings VIP Hosts Cause Harm, Lawsuit Says
The DraftKings Pennsylvania lawsuit also alleges that, rather than cutting a user off when they begin showing signs of a gambling problem, DraftKings pairs them with personalized “VIP Hosts.”
“Acting as if they were friends, [the VIP hosts] milk them for every dollar they have,” the law firm said.
VIP hosts deploy a specific playbook of tactics, according to the allegations in the lawsuit, such as contacting their assigned users when they have not logged on for a few days. The hosts also reach out after a “sizable” loss, “luring them back” with promotions.
All together, the Pennsylvania lawsuit charges DraftKings with violating several state laws.
DraftKings allegedly violated sections of the Pennsylvania Unfair Trade Practices and Consumer Protection Law that protect consumers against deceptive practices and false advertising.
DraftKings has a license from the state of Pennsylvania to offer online gambling.
The lawsuit seeks injunctive relief and damages related to DraftKings’ “widespread and ongoing deception of its customers.”
“DraftKings attracts new users and keeps existing users coming back by advertising an all-upside gambling experience,” the complaint says. “In reality, DraftKings has created an all-upside opportunity only for itself.”
DraftKings didn’t put out a public statement related to the Pennsylvania lawsuit.
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