Class Action Filed Against FanDuel and DraftKings in Louisiana

A class action lawsuit has been filed in Louisiana against two online sports betting companies, FanDuel and DraftKings. The suit claims the companies designed and marketed their apps to encourage gambling addiction and profit from it. According to the complaint, the companies use an aggressive data tracking system to identify vulnerable users or those with gambling habits.

The plaintiffs are Adrian Payton, Toi Smith and Yolanda Perkins, all of whom live in New Orleans. Each says they wagered more than 20,000 dollars on one or both platforms. The lawsuit was filed on behalf of anyone who opened an account, deposited money and used the apps in the state. The complaint argues that these apps are not ordinary betting platforms but products that are defectively and dangerously designed from the start.

It is too early to say how the case will turn out. However, the companies are also dealing with other lawsuits across the United States. This month, FanDuel suffered a legal defeat in a shareholder lawsuit brought by over 100 plaintiffs, which also named co-founder Nigel Eccles. DraftKings, meanwhile, is facing a licensing issue in Louisiana. The state Gaming Control Board has not approved the company's full license and has extended its current license by four months. The board is reviewing how the company uses artificial intelligence in its products.

According to the complaint, customers who continue playing despite losses can eventually leave the platforms, which means the companies lose revenue. The plaintiffs therefore claim that the companies keep customers playing through targeted promotions, artificial intelligence, and interfaces that are easy to start using but hard to stop. The claims include a refund of the net money deposited into accounts, damages for emotional distress, harm to family relationships, and treatment costs.

Mobile sports betting officially launched in Louisiana in January 2022. The lawsuit states that in 2023, FanDuel and DraftKings together held 75 percent of the state's market. FanDuel's share is listed at 44 percent and DraftKings' share at 31 percent.