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DraftKings sued for violating responsible gaming laws
DraftKings is the target of a class-action lawsuit filed in Michigan for letting players instantly increase betting limits in violation of responsible gaming laws in seven U.S. states.
The lawsuit was filed on December 30, 2025, centering on plaintiff Michael Koester, who accuses DraftKings of permitting him to raise his deposit and betting limits without observing the 24-hour “cooling-off” period required by law.
The complaint states that in 2021, Koester set spending limits on his DraftKings account; however, over the following years, he increased the limits on different occasions and deposited thousands of dollars, with the operator allowing him to instantly make these changes.
The lawsuit additionally argues that DraftKings violated gambling regulations in other states, including Colorado, Connecticut, Indiana, Iowa, Louisiana, and New York, as these states also require 24-hour waiting periods.
Court documents show that DraftKings interprets the regulation differently, as it allows users to raise limits as soon as a prior restriction period expires, enabling immediate increases without any cooling-off period.
Aside from the regulatory violations, the lawsuit claims that accepting bets during those periods amounts to statutory conversion and illegal electronic fund transfers under both state and federal law.
This adds to DraftKings’ legal challenges in Iowa, where the company is being sued for over $14 million in unpaid winnings, and Massachusetts, where it was fined $450,000 by the Gaming Commission.
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