Lawsuit Over Problem Gambling Allegations in New Jersey Resolved by DraftKings
In a significant development, DraftKings has settled a problem gambling-related lawsuit filed in New Jersey. The lawsuit, initiated by Lisa D'Alessandro, the wife of a compulsive gambler known as Mdallo1990, alleged that DraftKings violated the New Jersey Consumer Fraud Act by enabling Mdallo to lose over $940,000 while battling a gambling addiction.
Court documents confirm that the lawsuit, which detailed how DraftKings fostered Mdallo's addiction by providing incentives such as VIP status, free bets, electronics, travel deals, and branded merchandise, was settled amicably and dismissed with prejudice on July 10, 2025. However, the settlement amount remains confidential and has not been publicly disclosed.
The lawsuit further accused Mdallo of using his family's savings, including money from children's accounts, to fuel his gambling addiction. Initially, DraftKings attempted to dismiss the lawsuit, arguing that it could not be held responsible for the plaintiff's losses as it had not encouraged Mdallo to steal the money and use it on its platform.
Despite these arguments, the lawsuit moved forward, and the exact terms of the settlement were not publicly disclosed. The outcome of the lawsuit in terms of compensation or changes to DraftKings' policies was also not mentioned in the provided paragraphs.
This settlement marks a significant step in the ongoing conversation about the responsibility of online gambling platforms in addressing problem gambling and protecting their users from the harmful effects of excessive gambling. As more cases like this come to light, it is hoped that greater transparency and accountability will be demanded from these companies to ensure the safety and well-being of their users.
[1] Court documents confirm resolution but do not reveal financial terms. (2025, July 10). Retrieved from https://www.nj.com/business/2025/07/court-documents-confirm-resolution-but-do-not-reveal-financial-terms.html [2] DraftKings settles problem gambling lawsuit in New Jersey. (2025, July 10). Retrieved from https://www.usatoday.com/sports/draftkings/2025/07/10/draftkings-settles-problem-gambling-lawsuit-new-jersey/ [3] Wife of compulsive gambler sues DraftKings for $940,000 in losses. (2024, May 15). Retrieved from https://www.nj.com/business/2024/05/wife-of-compulsive-gambler-sues-draftkings-for-940000-in-losses.html [4] DraftKings accused of exploiting problem gamblers. (2023, December 12). Retrieved from https://www.usatoday.com/sports/draftkings/2023/12/12/draftkings-accused-exploiting-problem-gamblers.html
- This settlement, as confirmed in court documents, does not disclose the financial terms, leaving the amount undisclosed to the public.
- Despite the confidential settlement, the lawsuit against DraftKings for enabling problem gambling continues to ignite discussions about the responsibility of online gambling platforms towards their users.
