It’s official: after obtaining a temporary direct mobile sports wagering license in early 2025, DraftKings is now preparing to launch its sportsbooks in Missouri.Starting...
DraftKings resolves lawsuit over stolen family funds
DraftKings settled a civil lawsuit that accused them of worsening the player’s gambling addiction, who lost nearly $1 million taken from family funds.
The lawsuit was filed by Lisa D’Alessandro, the estranged wife of a high-spending gambler, on behalf of herself and her two minor children. The lawsuit claimed that DraftKings, along with its New Jersey licensing partner, Resorts Atlantic City, enabled and manipulated her husband’s addiction to the disadvantage of his family.
D’Alessandro insisted that the companies encouraged the high-stakes play of “Mdallo1990,” despite clear signs of compulsive gambling. The plaintiffs claimed he stole $942,232.32 from family accounts between 2020 and 2024 to gamble.
The case was dismissed with prejudice on July 10 after the parties settled. County Superior Court Judge Stephen Petrillo filed a stipulation and the order of dismissal. The terms of the settlement remain confidential.
The original complaint said:
“Defendants actively participated in the addiction of Mdallo1990 by targeting him with incentives, bonuses, and other gifts to create, nurture, expedite, and/or exacerbate his addiction.”
The complaint also highlighted how the bettor’s deposits grew from $24,486.84 in 2020 to $776,587.44 in 2023, when he placed over 14,000 bets.
The plaintiffs alleged that DraftKings failed to conduct source of funds checks despite the steep rise in wagering and said the money included stolen savings set aside for their children’s baptisms.
The plaintiffs further alleged:
“Defendants knew that the source of the money wagered by Mdallo1990 was illegitimate.”
According to the complaint, DraftKings assigned the player to a private VIP group with dedicated hosts who offered perks including Apple products, travel packages, and branded gifts.
The defendants had moved to dismiss the case in March, arguing the claims were legally baseless.
The defendants also rejected the negligence and conversion claims, arguing:
“Even assuming Mdallo1990 stole $942,232.32 from Plaintiffs and lost all of it betting on sports, Plaintiffs’ loss was caused by Mdallo1990’s choices to steal Plaintiffs’ money and use it to place bets.”
In their motion, the defendants said the plaintiffs lacked standing under New Jersey’s Consumer Fraud Act because they were not consumers of DraftKings’ services, and argued that the Casino Control Act provided the exclusive legal framework for issues related to problem gambling.
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