A Pennsylvania psychiatrist and DraftKings Online Casino have settled a lawsuit out of court.
According to court documents filed in United States District Court for the Southern District of New York, DraftKings and Dr. Kavita Fischer reached a settlement earlier this month.
The case was “voluntarily dismissed with prejudice,” according to a court filing dated July 8, 2025.
In June, a court filing indicated that the parties had “made substantial progress toward finalizing the terms of a settlement.”
Fischer filed a complaint against DraftKings in February 2025, one year after a shocking article in The Wall Street Journal detailed her experience using DraftKings. Fischer courageously shared her story with the newspaper.
The venue for the case was New York federal court because DraftKings has an office for marketing and business development operations in New York City, according to the complaint.
DraftKings Pennsylvania VIP Status
The mother of two lost more than $150,000 on DraftKings over just four months. Altogether, she had lost $190,000 on the platform.
She reportedly also used the now-defunct PointsBet gambling site, winning and losing $500,000 on the platform. She did not file a lawsuit against Fanatics Betting and Gaming, which acquired PointsBet in 2024.
Fischer’s losses were part of the more than $2 billion Pennsylvania online casinos win from players annually. Gambling addiction has skyrocketed, with Pennsylvania self-exclusion exploding in recent years.
Her horrifying story went viral and became one of the more prominent online gambling addiction stories in recent years.
Terms of the settlement weren’t disclosed in court filings. Fischer’s attorney, Matthew Litt, didn’t respond to Gambling Harm’s request for comment.
It is uncommon for a former user of an online gambling platform to find success with litigation related to addiction. The U.S. legal system can be frigid toward people with problem gambling.
Passive vs. Active Exploitation
Fischer’s case hinged on the treatment she received as a so-called “VIP” player.
“[T]his suit does not allege liability on the basis that DraftKings passively permitted an addicted gambler to use its platform,” the complaint said.
“Rather, this suit alleges intentional tortious acts because Defendant actively and 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.”
She was seeking compensatory and punitive damages against DraftKings.
Former VIP gamblers have little luck winning court cases against the U.S. betting industry. Unlike a country such as Sweden, people harmed by betting sites can’t recover losses.
Related: PA Woman Who Lost $300K On DraftKings Pleads Guilty In Public Funds Theft
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