Betting company settles lawsuit after gambler’s wife sued over $1million loss
DraftKings, a leading US-based sports betting platform, has reached a confidential settlement in a lawsuit filed by Lisa D’Alessandro, the wife of a compulsive gambler who lost nearly $1 million through the site over a four-year period.
The case, which drew national attention in the United States, alleged that DraftKings enabled and encouraged problem gambling by offering VIP treatment and incentives to the bettor, identified in court only by his username, Mdallo1990.
According to court filings, the man placed over 14,000 sports bets between 2020 and 2024, incurring losses totalling nearly $950,000.
Lisa D’Alessandro claimed that her husband stole money from their family accounts, including their children's savings, to fund his gambling habit — all without her knowledge. She discovered the devastating financial damage in November 2023, prompting her to file a lawsuit against the betting company.
The suit argued that DraftKings should have intervened much earlier, pointing to the rapid escalation in the man’s betting patterns — from under $25,000 in deposits in 2020 to a staggering $777,000 in 2023. “That should have set alarm bells ringing,” the lawsuit stated.
DraftKings had previously attempted to dismiss the case, arguing that it had not encouraged the man to steal funds and that the lawsuit was not filed by a registered customer. However, the court allowed the matter to proceed, leading to a negotiated resolution. The terms of the settlement remain undisclosed.
Despite its denials of wrongdoing, the company acknowledged that Mdallo1990 had been designated as a VIP, receiving perks such as free bets, electronics, travel offers, and branded merchandise — benefits critics say may have worsened his addiction.
This is not the only legal trouble DraftKings has faced in recent months.
In June, the company agreed to pay $3 million in a Connecticut settlement after the state's Department of Consumer Protection (DCP) found that around 7,000 users had been misled by unclear online casino bonus terms.
A spokesperson for the company said at the time: “DraftKings is committed to operating in compliance with all regulatory requirements. We value our relationship with the Connecticut Department of Consumer Protection and will continue to work collaboratively with them.”
DraftKings is also currently being sued in Baltimore, where city officials allege that both it and rival sportsbook FanDuel have misled vulnerable residents with deceptive promotions and bonus schemes.
Baltimore Mayor Brandon Scott did not mince words. “These companies are engaging in shady practices, and the people of our city are literally paying the price,” he said. “DraftKings and FanDuel have specifically targeted our most vulnerable residents — including those struggling with gambling disorders — and have caused significant harm as a result.”
In response to mounting scrutiny, DraftKings has rolled out new responsible gambling features, including the “My Budget Builder”, a tool that allows users to set personalised spending limits and receive warning alerts.
The company also launched a $10 million national advertising campaign during March Madness, promoting safe betting habits in collaboration with major sporting leagues such as the NFL and NBA.
Still, the D’Alessandro case underscores growing concerns about the human cost of digital sports betting — particularly when problem gamblers fall through the cracks of corporate safeguards.
