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A proposed Louisiana class action targets FanDuel, DraftKings and two casino licensees over allegations that the betting apps induce and exploit addictive behavior.
The plaintiffs seek refunds of net deposits and damages, but the allegations are not court findings, and class certification remains unresolved.
Three New Orleans residents—Adrian Payton, Toi Smith and Yolanda Perkins—brought the lawsuit, according to an AOL report. Each reportedly wagered more than $20,000 on one or both platforms; those wagering amounts are not identified as net losses.
Lawsuit Targets App Design and Data Tracking
The complaint alleges that FanDuel and DraftKings use a predatory data-tracking system to target vulnerable or compulsive gamblers. The plaintiffs argue that the apps are unreasonably dangerous products with defective designs, rather than neutral platforms for placing bets.
“Thus, DraftKings’ and FanDuel’s business model requires them to find ways to keep customers betting even as they lose money and to recruit new bettors to their platforms,” the lawsuit states.
The suit also names Amelia Belle Casino and Bally’s Baton Rouge, the licensed casino partners of the operators.
The proposed class covers Louisiana residents who created accounts, deposited funds and used the mobile sports wagering apps under the regulatory authority of those casino licensees.
Plaintiffs Seek Deposit Refunds and Gambling-Harm Damages
The plaintiffs seek a refund of all net capital deposited into the FanDuel and DraftKings platforms. They also request compensatory damages for severe mental anguish and emotional distress, disruption to family and domestic relationships, and mental health care costs for clinically diagnosed gambling disorders.
Louisiana launched online sports betting in January 2022, following a parish-by-parish referendum in 2020 and legislation passed in 2021.
The lawsuit says FanDuel and DraftKings together held 75% of Louisiana’s mobile betting market in 2023—44% for FanDuel and 31% for DraftKings. Those figures are attributed to the lawsuit, not independently verified market data.
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Source: As reported by AOL.com.
