DraftKings and Resorts Atlantic City have settled a state civil lawsuit that accused them of exacerbating the gambling addiction of a customer.
DraftKings and its New Jersey licensing partner Resorts Atlantic City have settled a state civil lawsuit that accused them of exacerbating the gambling addiction of a customer who lost nearly $1m in family funds, including money taken from his wife and children.
The lawsuit was filed by Lisa D’Alessandro, the estranged wife of a high-spending gambler, on behalf of herself and her two minor children. It claimed the companies enabled and exploited the customer’s addiction to the detriment of his family.
In a detailed complaint, the plaintiffs alleged that the companies monitored and encouraged the high-stakes play of her estranged husband, identified only as “Mdallo1990”, despite clear signs of compulsive gambling.
They claimed he stole $942,232.32 from family accounts between 2020 and 2024 to fund betting activity.
The case was dismissed with prejudice on 10 July after the parties reached a settlement.
A stipulation and order of dismissal was filed with Essex County Superior Court Judge Stephen Petrillo. The terms of the settlement remain confidential.
The original complaint said: “Defendants actively participated in the addiction of Mdallo1990 by targeting him with incentives, bonuses, and other gifts to create, nurture, expedite, and/or exacerbate his addiction.”
Family allege DraftKings failed to conduct SoF checks
It outlined how the bettor’s deposits escalated from $24,486.84 in 2020 to $776,587.44 in 2023, during which time he placed over 14,000 bets.
The plaintiffs alleged that DraftKings failed to conduct source of funds checks despite the steep rise in wagering and said the money included stolen savings set aside for their children’s baptisms.
According to the complaint, DraftKings assigned the player to a private VIP group with dedicated hosts who offered perks including Apple products, travel packages, and branded gifts.
The plaintiffs further alleged: “Defendants knew that the source of the money wagered by Mdallo1990 was illegitimate.”
The defendants had moved to dismiss the case in March, arguing the claims were legally baseless.
In their motion, they said the plaintiffs lacked standing under New Jersey’s Consumer Fraud Act because they were not consumers of DraftKings’ services, and argued that the Casino Control Act provided the exclusive legal framework for issues related to problem gambling.
They also rejected the negligence and conversion claims, arguing: “Even assuming Mdallo1990 stole $942,232.32 from Plaintiffs and lost all of it betting on sports, Plaintiffs’ loss was caused by Mdallo1990’s choices to steal Plaintiffs’ money and use it to place bets.”