Date: December 16, 2024, 04:33h.
Last updated: December 16, 2024, 04:33h.
A lawsuit has been filed against DraftKings by a former client, claiming the company shared customers’ video-viewing habits without permission.
In a class action lawsuit filed in the US District Court for the Southern District of New York, it was alleged that DraftKings used online tracking devices from Facebook to collect data on videos viewed by bettors and the games they showed interest in wagering on.
The legal document stated, “Plaintiff Wan never consented, agreed, nor permitted Defendant to disclose Plaintiff’s personally identifiable information (PII) and viewing information to Facebook or other third parties and certainly did not do so for purposes violative of the Video Privacy Protection Act (VPPA).”
DraftKings, a major online sportsbook operator in the US, clearly states in its privacy policy that it will share customer data with third parties.
“Certain products, services, or other materials displayed on the Website and Applications may integrate with, be integrated into, or be provided in connection with certain third-party services and content. We do not control those services and content and our Terms of Use and this Privacy Policy do not apply to those services and content,” as per the gaming company’s privacy policy.
DraftKings Controlled Data-Sharing, Alleges Wan
It was alleged by Wan’s representatives that DraftKings selectively shared customer data with Facebook, enabling the social media company to access customers’ PII through the use of Facebook business tools.
The tools used included Facebook Pixel and Conversions API, allowing for easy transmission of customer data from DraftKings to Facebook.
“More specifically, the Facebook pixel that Defendant installed and used tracked, recorded, and sent Facebook its customers’ granular Website and Apps activity, including the names of specific video games and other audio visual content that customers requested and/or viewed each time through Defendant’s Website and Apps. The information is not merely metadata,” noted Wan’s legal team in the court filing.
The attorneys asserted that the Facebook tools used by DraftKings were not essential to its business model, and even if they were, they could have been used in a way to protect clients’ viewing habits and information. They further added that when a customer views a video or makes a purchase on DraftKings, a record of that activity is transmitted to Facebook without the client’s knowledge.
“At no point did Plaintiff or the Class Members consent to Defendant’s disclosure of their video viewing history to third parties. As such, Defendant deprived Plaintiff and the Class Members of their privacy rights and control over their personal information,” according to the filing.
DraftKings Litigation Piling Up
The Wan v. DraftKings case is the latest in a series of litigations against the Boston-based gaming company. Recently, a former DraftKings engineer sued the company in a Massachusetts federal court, alleging wrongful termination for requesting parental leave, potentially violating the Family and Medical Leave Act.
Following this suit, a New Jersey woman sued DraftKings, claiming the company contributed to her husband’s gambling problems, leading to losses of nearly $1 million. DraftKings is also facing legal issues with two unions representing professional athletes regarding the use of player images.
In September, DraftKings agreed to pay a $200,000 civil penalty after the Securities and Exchange Commission (SEC) accused CEO Jason Robins of sharing nonpublic financial data on social media.