US gambling company DraftKings and its partner, Resorts Atlantic City, have reached a confidential settlement in a civil lawsuit accusing them of enabling and exploiting a compulsive gambler.
As per the lawsuit, the compulsive gambler, identified only as Mdallo1990, allegedly stole nearly $1 million from his family to fund his addiction. The civil case was filed by Lisa D’Alessandro on behalf of herself and her two children, alleging that DraftKings encouraged high-stakes betting despite clear signs of gambling addiction.
Mdallo1990 reportedly diverted nearly $1 million from family accounts, including the savings set aside for his children, while placing over 14,000 bets. The complaint claimed that DraftKings failed to conduct source-of-funds checks, even as deposits surged.
Instead, the allegation states that DraftKings even incentivized his uncontrolled spending of illegally gained money with gifts, VIP perks, and bonuses. DraftKings, of course, moved to dismiss the case earlier this year, arguing that the plaintiffs lacked legal standing.
The lawsuit was officially dismissed on July 10, following the settlement between DraftKings and the plaintiff. The terms of the settlement, however, remain undisclosed.