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State of Play’s TL;DR
- A suit filed in the Civil District Court of Orleans Parish claims apps from FanDuel and DraftKings should be treated as products under the Louisiana Products Liability Act.
- The complaint seeks refunds of net deposits, damages, medical costs, and attorney’s fees, and the plaintiffs asked for a jury trial.
Three New Orleans bettors are asking a Louisiana state court to hold FanDuel and DraftKings responsible for how their sportsbook apps are built. The proposed class action leans on a product-liability law.
The plaintiffs claim the apps were designed to induce and exploit addictive behavior, RG.org reported.
The filing lands in a state where mobile sportsbooks went live in January 2022, after a 2020 referendum approved sports betting parish by parish.
Suit accuses sportsbooks of targeting vulnerable bettors
According to Gaming America, the complaint points to slot-style micro-wagering, bonus bets timed to periods of money trouble, and screens that let customers override limits with no cooling-off period.
It also alleges the companies use customer data to identify vulnerable bettors and target marketing to them. The complaint says an internet gaming company owned by FanDuel’s parent collects at least 186 attributes on each bettor.
Adrian Payton, 43, says he bet $88,716.27 using debit and credit cards. Yolanda Perkins is described as having bet about $32,000 through FanDuel and another $37,000 through DraftKings. Toi Smith, 29, says she began using both apps at 21, according to Gaming America and RG.org.
Jennifer Hoekstra, counsel for the plaintiffs, said in a prepared statement to WBRZ:
“Louisiana law protects consumers from dangerously designed products, and we are asking a Louisiana court to apply it here.”
What the plaintiffs want
The proposed class action would cover Louisiana residents who set up accounts with either sportsbook app and deposited money. The plaintiffs seek refunds of all net funds deposited, calculated by subtracting withdrawn winnings from total deposits.
They also seek compensation for financial losses and emotional distress, medical costs, and attorney’s fees, according to Gaming America.
The damages sought include mental anguish, disruption of family relationships, and mental health treatment costs for clinically diagnosed gambling disorders. RG.org added that the plaintiffs seek return of commissions and transaction fees.
Based on reporting by Gaming America, RG.org, and Gambling News.
