DraftKings Facing Lawsuit Over VIP Schemes

American Gambling Company DraftKings Facing Lawsuits in Several States for Allegedly Misleading Promos and Predatory Practices

 

MANHATTAN, NEW YORK (February 18, 2025) – DraftKings has become ensnared in a class action lawsuit in New York over accusations that the gambling company has engaged in deceitful practices.

According to the legal claim filed in the U.S. District Court for the Eastern District of New York, the company has been misleading consumers into making larger bets and on a more regular basis.

Claims have also been made that the company is using deceitful language, including phrases such as “risk-free bet” or “no sweat bet” as part of promotions that they offer.

Moreover, attorneys have argued that the promotions and practices of DraftKings are putting problem gamblers at risk. This is allegedly accomplished by pairing at-risk gamblers with VIP hosts.

The job of these hosts is to cultivate relationships with the most highly engaged customers. In addition to the lawsuit in New York, DraftKings is facing lawsuits in Illinois, Kentucky, and New Jersey.

Liability for Lost Income from Sports Gambling

Gambling addictions are unfortunately quite common across New York in the United States. According to one article by Rutgers, “The National Council on Problem Gambling (NCPG) estimates that approximately 5 million Americans meet the criteria for compulsive gambling. However, only around 8 percent of these individuals will ever seek help for their problem.” There are a number of signs associated with problematic gambling.

• People with the gambling addiction will generally try to hide it from their family, friends, and coworkers.
• People with a gambling addiction often try to chase losses and claim they will stop after they win big.
• People with gambling addiction often borrow money and gamble in order to resolve financial issues.
• People with gambling addiction often find it extremely difficult to stop gambling and may experience psychological withdrawal symptoms.

Depending on the facts of any case, a sports betting company could face liability for deceptive or illegal business practices. There are several laws and regulations in New York designed to protect consumers from deceptive practices related to sports gambling. Pursuant to New York’s General Business Law § 349-350, companies cannot use advertisements or promotions that contain false, deceptive, or misleading claims. It is important that certain steps are taken if you’ve been harmed by DraftKings practices.

• Financial records related to the transactions should be sought.
• Copies of advertisements and emails should be collected.
• An experienced New York trial attorney should be contacted.

It can be hard to know what to do if you suffer from a gambling addition. There are medical and psychological resources available. In addition to these resources, people who’ve been harmed by the deceptive practices of DraftKings or other gambling companies may be able to pursue damages through a civil claim. A New York attorney can examine all of the unique facts of your case and let you know if you have a claim that can be pursued.

Getting Legal Help After Being Harmed By DraftKings

We at Gersowitz Libo & Korek, P.C. extend our best wishes to all of the people who have been impacted by the practices of DraftKings. There needs to be a thorough investigation into all of the allegations of wrongdoing. It is deeply wrong for any company to prey upon vulnerable people and drain them out of their money.

Have you or someone you cared about been harmed by the business practices of DraftKings? You may have legal recourse. Our team of attorneys is committed to helping people impacted by unethical and illegal business practices. Whether you just have legal questions or need any type of assistance, we are here for you. You can reach out to us anytime at (516) 908-9792.