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- Michigan resident Michael Koester has filed a lawsuit against DraftKings alleging the company did not enforce mandatory self-imposed deposit limit restrictions, leading to destructive gambling behavior.
- The case highlights ongoing concerns about responsible gambling measures and player protections across multiple states, including Michigan and others like Colorado and New York.
Michael Koester, a resident of Michigan, has filed a lawsuit that accuses DraftKings of violating state laws that require a 24-hour cooling-off period before users can increase their self-imposed gambling limits.
Koester submitted evidence, including screenshots, showing that he was able to bypass these limits multiple times between 2022 and 2023, leading to losses exceeding $25,000. DraftKings operates a sportsbook in the state and a Michigan online casino.
The complaint extends beyond Michigan to states such as Colorado, Connecticut, Indiana, Iowa, Louisiana, and New York. Koester argues that other platforms, such as FanDuel and BetMGM, correctly implement these protections, contrasting them with DraftKings’ failure to enforce the mandatory delay designed to help prevent problem gambling.
Koester suing on behalf of others along with personal losses
This lawsuit presents significant implications, spotlighting the gap in responsible gambling enforcement on popular platforms.
Koester is suing not only for his personal losses but also on behalf of other users who may have been affected, with the aggregate amount exceeding $5 million.
The suit demands repayment as well as treble damages, punitive damages, and legal fees.
DraftKings is concurrently defending multiple lawsuits relating to its promotion practices and accessibility issues, reflecting growing regulatory scrutiny and consumer protection challenges facing major operators in the online gambling industry.
Based on reporting by Adam Roarty for CasinoBeats.
