DraftKings, along with its New Jersey partner Resorts Atlantic City, has settled a civil lawsuit filed by Lisa D’Alessandro, who accused the sportsbook of contributing to her husband’s gambling addiction and the resulting loss of nearly $1 million in family assets. Filed in Essex County Superior Court, the suit alleged that the operator enabled compulsive betting behavior, ultimately harming D’Alessandro and her two minor children. A stipulation of dismissal with prejudice was entered on July 10, formally concluding the legal matter.

Court documents confirmed that the case was resolved amicably, although the financial terms of the settlement remain sealed. This marks the second such settlement involving DraftKings within a week and the second recent legal win for attorney Matthew Litt, who also represented D’Alessandro.

Allegations of targeted incentives and VIP perks:

The lawsuit claimed that D’Alessandro’s estranged husband, referred to as “Mdallo1990,” wagered over $942,000 between 2020 and 2024. According to the complaint, these funds were taken from family accounts, including money set aside for their children’s baptisms. The filing alleged DraftKings actively fostered his addiction by placing him in an exclusive VIP program and offering enticements such as Apple electronics, travel deals, and branded merchandise.

“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 original filing stated.

The plaintiffs further claimed that the operator failed to conduct source of funds checks, despite the rapid growth in deposits—from $24,486 in 2020 to nearly $777,000 in 2023—while the account recorded over 14,000 wagers during that period. They asserted that DraftKings staff, trained to recognize problem gambling, neglected to intervene and instead promoted further engagement.

D’Alessandro also included her children as plaintiffs, stating that the gambling losses affected the entire family, with the father allegedly stealing money and gifts meant for significant family events.

Legal arguments and previous case precedents:

In March, DraftKings sought to have the lawsuit dismissed. The company’s legal team argued that D’Alessandro and her children did not qualify as “consumers” under the New Jersey Consumer Fraud Act, which they said invalidated the legal standing of the case. They also emphasized that the Casino Control Act governs gambling-related disputes, rendering the consumer fraud claim irrelevant.

In their dismissal motion, DraftKings pointed to the case of Sam Antar vs. MGM Resorts as legal precedent. Antar had previously sued MGM alleging that he was allowed to gamble despite being on a self-exclusion list. However, courts ruled against him, stating that operators were under no legal obligation to prevent self-identified problem gamblers from wagering. That decision was upheld by the Third Circuit Court of Appeals and continues to influence similar litigation.

This settlement follows another recent agreement involving Dr. Kavita Fischer, who also sued DraftKings over similar allegations. According to SBC Americas, Fischer, a psychologist, disclosed that she lost more than $150,000 over four months while gambling on the platform. Litt represented her in that case as well, though the settlement details remain private.

Litt is also representing Amit Patel, a former Jacksonville Jaguars employee, in an ongoing suit against FanDuel. Despite pleading guilty to embezzling nearly $20 million from the NFL team to fund gambling activity, Patel claims the operator encouraged his addiction. The lawsuit alleges that FanDuel “actively and intentionally targeted and preyed on plaintiff with incentives, credits, and gifts” in a way that worsened his dependency.

FanDuel recently submitted a filing in that case referencing the Antar decision, echoing DraftKings’ defense in the D’Alessandro matter. As of now, no further updates have been made in the Patel litigation since April.