DraftKings Sued by Wife of Gambler who ‘Plundered Kids’ Savings’
The separated spouse of a New Jersey father who squandered almost $1 million of the family's money betting at DraftKings seeks retribution.
In a legal case lodged in New Jersey state court, Lisa D’Alessandro accuses her husband of stealing from her and their two kids to fund his gambling habit. She additionally claims that DraftKings "fostered" his addiction and pushed it to escalate uncontrollably.
The spouse, identified solely in court records by his DraftKings username, "Mdallo1990," wagered nearly $15 million on the site from 2020 until January 2024. Mdallo1990 stole credit cards and the savings accounts of children, which had been filled with money received as gifts during Christmas, birthdays, and their baptisms.
Issue Grows Exponentially
During his initial year at DraftKings, Mdallo1990 never wagered more than $3,775 in any single month. By 2023, that had surged to $125,000 a month, exceeding 70 percent of his yearly earnings, the complaint indicates.
The plaintiff alleges that Mdallo1990 "actively contributed" to worsening her husband's gambling issue, urging him to bet "significantly larger sums" until he lost everything, according to the lawsuit.
The lawsuit claims that DraftKings extracts user information to pinpoint the most potentially profitable customers. Based on this, the sportsbook focused on Mdello1990 and extended an invitation for him to join its “VIP Private Group.”
According to the complaint, a group of VIP hosts was designated to the bettor to “squeeze as much money” from him as possible.
The plaintiff asserts that these hosts enticed Mdallo1990 with perks like free wagers and credits to offset his losses, along with "gifts and trophies" for wagering beyond his financial limits.
By 2022, he attained “Onyx Elite level status” and was rewarded for his performance with a complimentary vacation and a “collection of premium Apple products,” along with other merchandise, according to the lawsuit.
‘Negligence in Due Diligence’
According to the lawsuit, Mdallo's VIP hosts from the 1990s should have been aware he was a married father and a problem gambler since they communicated with him nearly every day. Additionally, DraftKings employees are instructed to identify indicators of problematic gambling but did not perform their responsibilities regarding the player, according to the lawsuit.
According to anti-money laundering regulations, DraftKings employees must request high rollers to confirm the origins of their funds; however, the plaintiff alleges they did not adhere to this policy concerning Mdallo1990.
The VIP agents neglected to ask for bank or tax statements from their protégé because they “understood that [he] could not keep depositing such large amounts of money on its site if they insisted on verification.” This is due to the fact that they “were aware that the origin of the funds bet by Mdallo1990 was not legitimate,” according to the lawsuit.
Responsibility of Care?
The situation resembles a federal lawsuit filed by troubled gambler Sam A. Antar last year against BetMGM, also in New Jersey.
Antar, sentenced to three years in prison in 2022 after admitting to stealing $794,000 for gambling, filed a lawsuit against BetMGM for negligence and unjust enrichment for providing him ongoing "incentives to gamble."
The judge in that case determined that New Jersey’s Casino Control Act “does not mandate casinos to prevent or halt the encouragement of gambling from individuals displaying problem gambling behavior.” She also concluded that "the casino had no common law duty of care owed to the plaintiff."
