Class-Action Filed in Michigan Federal Court

Lawsuit Targets DraftKings, Alleges Illegal Gambling Offering

The lawsuit alleges a widespread lack of compliance by one of America’s leading sportsbooks and gaming platforms insofar as gambling laws are concerned.

Details of the Complaint Against DraftKings

A new class-action lawsuit was filed with the US District Court for the Eastern District of Michigan on December 30, targeting DraftKings over what the plaintiff, one Michael Koester, alleges are systemic breaches of gambling laws across the country. This accusation comes only a few days after DraftKings and Mindway AI partnered to strengthen consumer protection safeguards.

Alleged Failure to Enforce Cooling-Off Periods

According to the complaint, filed by the Michigan native, DraftKings has not enforced a rule that would require customers to go through a mandatory “cooling-off” period, but rather allows them to place bets and gamble right away.

Koester specifically argued that because DraftKings never imposed these restrictions in his own case, he was allowed to raise his gambling limits on multiple occasions, eventually hitting $25,000. The offenses are said to have happened between 2022 and 2023. The lawsuit further argued:

“But for this immediate ability to increase gaming limits, Plaintiff would have been able to delay the gambling impulse and avoid falling into a destructive gambling cycle which caused him significant harm.”

This, the lawsuit argues, is a breach of existing customer protection safeguards designed to prevent people from developing reckless gambling behavior and addiction.

Alleged Breaches Across Multiple States

The lawsuit alleges such breaches at home, but has also named other states where such potential offenses occurred.

Among the states targeted by the complaint are places such as Colorado, Connecticut, Iowa, Louisiana, and New York. Each of these states is alleged to have seen DraftKings fail to strictly impose the 24-hour cooling-off period.

DraftKings Faces Growing Legal Scrutiny

Lawsuits against America’s biggest betting companies are not entirely new. Recently, a similar lawsuit was filed against DraftKings by an Iowa gambler who is disputing a $14-million payout with the sportsbook.