DraftKings Faces Class Action Lawsuit Over Alleged Account Closures and Fund Withholding
DraftKings is under fire following a class action lawsuit filed in Massachusetts. The suit, brought by Eric Avila, accuses the company of illegally deactivating user accounts and withholding balances, potentially affecting thousands of customers.
The Allegations
Eric Avila, a Texas resident, claims DraftKings deactivated his account in August 2024 while it held a balance of $100. According to the company, Avila violated the terms of service by operating multiple accounts—a charge Avila denies. The lawsuit alleges that DraftKings failed to provide evidence supporting these claims, leaving Avila unable to access his account or withdraw his funds.
The suit also highlights a “catch-22” situation, where users are locked out of their accounts and simultaneously blocked from accessing their remaining balances. Avila argues this practice enables DraftKings to withhold substantial funds from users unfairly.
The lawsuit accuses DraftKings of:
- Breach of contract, for preventing users from withdrawing funds at will.
- Violation of Texas consumer protection laws, for allegedly deceptive practices.
Avila aims to form a class to represent other users who have experienced similar issues, potentially involving thousands of affected accounts.
Broader Legal Troubles
The Avila case isn’t the only legal battle DraftKings is facing. The company is involved in at least two other prominent lawsuits:
Lisa D’Alessandro’s Class Action Lawsuit: Filed in connection to DraftKings’ VIP program, this case alleges that the company exploited her husband’s gambling addiction by encouraging excessive betting. The lawsuit claims DraftKings’ tactics led to the family’s financial ruin, with her husband reportedly losing nearly $1 million on the platform.
Data Privacy Violations: Another lawsuit, filed in the Southern District of New York, accuses DraftKings of sharing user data with Facebook without consent. The suit alleges that sensitive details about users’ gambling habits and viewing behaviors were disclosed, violating federal privacy laws, including the Video Privacy Protection Act.
Recommended