DraftKings Lawsuit Seeks Discovery Into Gambling Algorithms, Bonuses and VIP Rewards

An Illinois man seeks access to data on the DraftKings algorithms he says were used to drive him into gambling addiction and nearly taking his own life.

The DraftKings lawsuit was filed by Dane Miller in late June, alleging the online sportsbook uses sophisticated data collection and analysis to identify customers whose behavioral traits suggest they are more likely to gamble frequently and place larger bets. According to the complaint, many of those same traits can also indicate a heightened risk of developing a gambling addiction.

Miller maintains that DraftKings could use this information to warn customers about potentially dangerous betting habits and help prevent gambling addiction. Instead, the lawsuit alleges the company uses the data to encourage increasingly risky wagers and maximize customer losses, leaving some individuals facing severe financial hardship, damaged relationships and serious mental health problems.

Sportsbook Gambling Addiction

A 2018 Supreme Court decision gave states the authority to legalize sports betting, which is now permitted in 39 states, Washington, D.C., and Puerto Rico.

As a result, online sports betting operators, or sportsbooks like DraftKings, FanDuel and BetMGM, quickly became popular. Many of these platforms allow live betting while sports events are in progress, not just on the outcome of games, but on scores, particular plays or player performance as well.

Along with this rise in prominence has come growing concerns over sports betting addiction. Critics argue that the apps use aggressive and deceptive promotional marketing, as well as AI-powered algorithms that psychologically profile customers.

https://www.aboutlawsuits.com/sports-betting-addiction-lawsuit/draftkings-lawsuit-discovery-gambling-algorithms-bonuses-vip-rewards/