DraftKings To Pay $325K In Class Action Settlement

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DraftKings Problem Gambling Class Action Settlement Overview:

• Why: The class action lawsuits allege that DraftKings violated gambling laws that enabled problem gamblers.
• Who: DraftKings settled multidistrict litigation against users of its platform and their spouses.
• Where: The lawsuit was filed in Massachusetts federal court.

DraftKings has agreed to a deal that includes donating $325,000 to responsible-gaming charities and will make changes to its processes to help protect individuals who have gambling problems.

The settlement marks the early end of multidistrict litigation (MDL) that alleged the online sports betting company violated gambling laws in several states. The class action lawsuit was first filed in 2015 and included DraftKings rival FanDuel, accused of the same violations. Several similar cases were consolidated in Massachusetts federal court in 2016.

FanDuel’s participation ended in July 2021 when it settled on $375,000 in donations to problem gambling organizations. 

DraftKings Settles With Donations, Policy Changes

DraftKings, which “denies all allegations of wrongdoing, liability or damages,” will donate the $325,000 to one or more national responsible-gaming organizations, which must be approved by the MDL’s class counsel. The donations must be made within 18 months after the settlement is approved. 

In addition to its donations, DraftKings will allow spouses and other legally authorized individuals to prevent problem gamblers from using the online gambling platform or set limits on how such gamblers can use the platform. DraftKings is allowed to request one or more pieces of proof from a gambler’s spouse, such as proof of financial dependency, joint obligations for a credit card used for betting or unpaid child support. 

These changes apply for at least two years in Georgia, Illinois, Indiana, Kentucky, Massachusetts, New Jersey, New Mexico, Ohio, South Carolina, South Dakota, Tennessee and Washington, D.C. 

The MDL class counsel can receive up to $140,000 in attorney fees per the proposed settlement. The six named plaintiffs, seeking to be named class representatives, may each receive a service award payment of up to $1,250. 

Have you or a loved one also faced issues with DraftKings or FanDuel? What do you think of the DraftKings settlement? Share your thoughts in the comments section below.

The plaintiffs are represented by proposed class counsel Taylor C. Bartlett of Heninger Garrison Davis LLC.

The DraftKings Problem Gambling Class Action Settlement is In Re: Daily Fantasy Sports Litigation, Case No. 1:16-md-02677-GAO, in the US District Court for the District of Massachusetts.

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