DraftKings Sued by Wife of Gambler who ‘Plundered Kids’ Savings’

• Gambling News
• 08 December 2024

The separated spouse of a New Jersey father who squandered almost $1 million of their family's money betting on DraftKings seeks retribution. 

In a legal action initiated in New Jersey state court, Lisa D’Alessandro alleges that her husband took money from her and their two kids to fund his gambling. She further claims that DraftKings "fostered" his addiction and pushed it to become unmanageable. 

The spouse, identified solely in court papers by his DraftKings username, “Mdallo1990,” wagered close to $15 million on the site from 2020 to January 2024. Mdallo1990 stole credit cards and the children's savings accounts, which had been contributed to through gifts given during Christmas, birthdays, and their baptisms. 

Issue Grows Larger 

During his initial year at DraftKings, Mdallo1990 never wagered over $3,775 in any given month. By 2023, it had surged to $125,000 monthly, exceeding 70 percent of his yearly earnings, the complaint indicates. 

The lawsuit states that the plaintiff asserts Mdallo1990 “actively engaged” in worsening her husband's gambling issue, urging him to bet “significantly larger sums” until he was left with nothing. 

The lawsuit claims that DraftKings collects user data to pinpoint the most potentially profitable customers. Based on this, the sportsbook focused on Mdello1990 and extended an invitation for him to become part of its “VIP Private Group.” 

According to the complaint, a group of VIP hosts was designated to the gambler to “squeeze as much money” from him as possible. 

According to the plaintiff, these hosts offered Mdallo1990 various incentives like complimentary bets and credits to offset his losses, along with “gifts and trophies” for wagering beyond his financial capacity. 

As of 2022, he attained “Onyx Elite level status” and was compensated for his performance with a complimentary vacation and a “collection of premium Apple products,” along with other items, according to the lawsuit. 

‘Negligence in Due Diligence’ 

According to the lawsuit, the VIP hosts at Mdallo1990 should have recognized that he was a problem gambler with a family, as they interacted with him nearly every day. Additionally, the lawsuit claims that DraftKings employees are educated to identify indicators of problematic gambling but did not perform their responsibilities regarding the player. 

According to anti-money laundering regulations, DraftKings employees must request high rollers to confirm their fund sources, but the plaintiff alleges that they did not adhere to this policy concerning Mdallo1990. 

The VIP agents did not insist on receiving bank or tax statements from their mentee as they “understood that [he] could not keep depositing such substantial amounts of money on its platform if they asked for verification.” This is due to the fact that they “were aware that the funds bet by Mdallo1990 were not legitimate,” the lawsuit asserts. 

Responsibility of Care? 

The situation resembles a federal lawsuit filed last year by troubled gambler Sam A. Antar against BetMGM, also located in New Jersey. 

Antar, sentenced to three years in prison in 2022 for admitting to stealing $794,000 for gambling, filed a lawsuit against BetMGM for negligence and unjust enrichment for providing him ongoing "incentives to gamble." 

The judge in that case decided that New Jersey’s Casino Control Act “does not obligate casinos to prevent or halt inducing gambling from individuals displaying problem gambling behavior.” She also concluded that “the casino had no common law duty of care owed to the plaintiff.”