DraftKings Settles After NJ Mom Says Dad Lost $1 Million Family Savings

• DraftKings settled the case with gambler’s ex-wife confidentially
• Lawsuit alleged gambling addiction enabled by VIP host failings
• Legal debate centered on duty of care and jurisdiction

DraftKings has settled with the ex-wife of a New Jersey dad who allegedly lost nearly $1 million of the family’s money gambling with the US sports betting giant.

In her lawsuit filed last December in the New Jersey state court, Lisa D’Alessandro claimed her ex-husband stole from her and their two children to support his habit and that DraftKings “nurtured” the addiction, encouraging it to spiral out of control.

He secretly drained credit cards and the children’s saving accounts, which had been funded by gifts received at Christmas, birthdays, and their baptisms, according to the lawsuit.

Undisclosed Settlement

On July 10, Essex County Superior Court Judge Stephen Petrillo dismissed the case with prejudice in response to a stipulation and order of dismissal, indicating that the case ended because of a mutual settlement agreement between the parties.

The amount of the settlement wasn’t disclosed. D’Allesandro had asked for the full return of the $942,232.32 her husband had lost gambling, which she argued belonged to her and her two children.

DraftKings argued that the plaintiffs lacked standing under New Jersey’s Consumer Fraud Act because they weren’t direct consumers of its services, and asserted that the Casino Control Act exclusively governs matters related to problem gambling.

The company also denied liability for negligence and conversion, claiming the losses were solely the result of Mdallo1990’s independent actions in stealing and gambling the funds.

VIP Staff Failure?

D’Allesandro contended that DraftKings’ VIP hosts should have recognized that Mdallo1990 was a problem gambler with a family, given their frequent interactions with him. According to the lawsuit, although DraftKings staff are trained to identify indicators of problem gambling, they failed to exercise appropriate diligence in this case.

Furthermore, D’Allesandro argued that under anti-money laundering regulations, DraftKings personnel are obligated to verify the source of funds for high-stakes players. They allegedly neglected to follow this policy with Mdallo1990.

People can go to the bar and drink till they’re blue in the face, but at some point, a bartender has to stop serving them,” D’Allesandro said in an interview with The Guardian in December. There was “nothing here [in the US] currently, when it comes to online betting apps, even when they are visibly addicted,” she added.

D’Allesandro filed for divorce the day after her husband confessed to losing the money gambling.