A Scranton man is among five Pennsylvania residents suing gambling company DraftKings, alleging the company engages in deceptive practices and exploits gambling addictions.
The class-action lawsuit, filed in April in federal court in the Eastern District of Pennsylvania, alleges DraftKings targets users that are on self-exclusion lists for addicted gamblers, or users that have asked the company to suspend or close their accounts to prevent them from gambling.
Scranton resident Lionel Alicea, one of the five people suing the company, has developed a “serious gambling addiction” since creating his account in June 2024, according to court filings. He lost $39,000 in two months on DraftKings, according to the complaint.
Alicea also created an account on Golden Nugget, a separately branded online casino operated by DraftKings, in May 2024. He lost $19,000 on Golden Nugget, according to the complaint.
A DraftKings spokesperson said Monday that the company would not be commenting on the lawsuit at this time.
Chicago-based civil rights firm Loevy + Loevy, which filed the lawsuit, claims DraftKings knowingly targets those with gambling addictions. The law firm said in a news release that DraftKings’ promotions are deceptive and hide features designed to foster problem gambling habits in new users
Attorneys wrote that one promotion, called “Casino Deposit Match Promotion,” promises to match 100% of a customers’ deposit, up to $2,000. In reality it requires players to bet 20 to 30 times the combined deposit and match amounts within a seven-day window, according to the lawsuit.
“Thus, someone depositing $2,000 to get a $2,000 match would be required to bet a further $40,000 within seven days. And if they do not gamble that much, they lose all the money in their account associated with the promotion, including their initial deposit,” the release reads in part.
They claimed the promotions are deceitful and meant to turn gamblers into addicts.
The lawsuit alleges that a user will be paired with a “VIP Host,” who acts as if they were friends with the user. The hosts deploy tactics, such as contacting the users after they have not logged in after a few days or after a large loss, according to the release. They lure them back with offers and promotions, according to the lawsuit.
The lawsuit is asking for for relief and damages.
The other people suing DraftKings are Matthew Harner, of Reading; Avi Setton, of Allentown; Robert Walker, of Folcroft; and Kenneth Macek, of Pittsburgh.
The Times-Tribune staff contributed to this report.