DraftKings and FanDuel face class-action lawsuit in Louisiana

A proposed class-action lawsuit has been filed against DraftKings and FanDuel in the Civil District Court for the Parish of Orleans, Louisiana, on October 22, demanding a jury trial.

The initial plaintiffs in the lawsuit are three Louisiana residents: Adrian Payton, Toi Smith, and Yolanda Perkins. Bally’s Baton Rouge and Amelia Belle are named as additional defendants in the lawsuit as those casinos respectively anchor the online sportsbooks for market access in Louisiana.

Allegations of AI-backed targeting

The lawsuit alleges that DraftKings and FanDuel use AI-backed personalization to keep losing bettors wagering and deliberately target and exploit problem gamblers. The lawsuit alleges that the online sportsbooks ignore or bypass self-exclusion and responsible gaming tools in violation of Louisiana’s Sports Wagering Act.

The lawsuit alleges that DraftKings and FanDuel are violating the Louisiana Products Liability Act (LPLA) by not having adequate warnings about their products’ highly addictive nature. According to the complaint, the operators do not have “conspicuous, medically accurate warnings detailing the addictive potential of the interfaces.”

Plaintiffs seek deposit recovery

The lawsuit seeks the recovery of all plaintiff deposits on the online sportsbooks.

DraftKings’ user agreement mandates that customers “indemnify, protect, defend and hold harmless DraftKings … from and against any and all third party claims, liabilities, losses, damages, injuries, demands, actions, causes of action, suits,” and associated legal costs.

Neither DraftKings nor FanDuel has filed a response to the Louisiana complaint as of the article’s publication.