Article Posted on: December 8, 2024, 06:24h.
Last updated on: December 8, 2024, 06:24h.
The spouse of a New Jersey father who lost almost $1 million of the family’s funds gambling at DraftKings seeks justice.
In a lawsuit filed in the New Jersey state court, Lisa D’Alessandro alleges her partner stole from her and their two kids to fuel his gambling habit. She also asserts that DraftKings enabled his addiction and allowed it to escalate.
Her partner, identified in court papers only by his DraftKings username, “Mdallo1990,” bet nearly $15 million on the platform from 2020 to January 2024. Mdallo1990 used credit cards and the children’s savings accounts, which were gifts from holidays, birthdays, and baptisms.
Escalating Problem
In his first year on DraftKings, Mdallo1990 never bet more than $3,775 in a single month. By 2023, it had surged to $125,000 per month, over 70% of his yearly income, according to the complaint.
The plaintiff asserts Mdallo1990 “actively contributed” to worsening her husband’s gambling issue, pushing him to bet “significantly higher amounts” until nothing remained, the lawsuit explains.
The lawsuit claims DraftKings analyzes user data to pinpoint the most profitable clients, attracting Mdello1990 and inviting him to join its “VIP Private Group.”
A team of VIP hosts was designated to the bettor to maximize extracting money from him, as per the complaint.
These hosts tempted Mdallo1990 with perks like free bets and credits to cover his losses, along with “gifts and trophies” for betting beyond his financial means, the plaintiff states.
By 2022, he reached the “Onyx Elite level status,” receiving rewards such as a complimentary vacation and a selection of premium Apple products, among other items, as per the lawsuit.
‘Failure of Due Diligence’
Mdallo1990’s VIP hosts should have recognized he was a problem gambler who was married with children since they conversed with him nearly every day, the lawsuit alleges. Further, DraftKings staff are trained to spot signs of problem gambling but failed to conduct proper due diligence on the player, according to the suit.
As per the plaintiff, DraftKings staff are also obligated under anti-money laundering guidelines to inquire about the origins of funds from high rollers but neglected to do so in Mdallo1990’s case.
The VIP agents refrained from requesting bank or tax statements from their client because they were aware that he would not be able to continue depositing large sums of money if verification was required. They knew that Mdallo1990’s wagered money came from illegitimate sources, the lawsuit alleges.
Care Obligation?
This case is reminiscent of a federal lawsuit filed by problem gambler Sam A. Antar last year against BetMGM, also in New Jersey.
Antar, who was sentenced to three years in prison in 2022 after admitting to stealing $794,000 for gambling, sued BetMGM for negligence and unjust enrichment by offering him continued incentives to gamble.
The judge in that case decided that New Jersey’s Casino Control Act does not mandate casinos to prevent or cease inducing gambling in individuals displaying signs of problem gambling behavior. She also determined that “the casino owed plaintiff no negligence common law duty of care.”