Louisiana Lawsuit Accuses DraftKings and FanDuel of Algorithmically Targeting Problem Gamblers

A proposed class-action lawsuit filed October 22, 2026 in Civil District Court for the Parish of Orleans accuses DraftKings and FanDuel of designing their mobile sports-betting apps to identify and exploit problem gamblers. The case, Payton et al. v. DK Crown Holdings Inc. d/b/a DraftKings Inc. et al., also names Louisiana casinos Bally's Baton Rouge and Amelia Belle as defendants, with lead plaintiffs Adrian Payton, Toi Smith, and Yolanda Perkins seeking to recover their deposits.

The complaint leans on the Louisiana Products Liability Act, arguing the apps themselves are defectively designed products rather than just services, and says DraftKings and FanDuel "use creative, algorithmically-crafted inducements to keep people in the game." It alleges the companies use troves of user betting data to identify and target users who show signs of gambling disorders, pointing to features like slot-machine-style micro-wagering, bonus bets timed to a bettor's financial distress, and limit-override screens with no cooling-off period.

Plaintiffs are seeking a refund of net deposits, compensatory damages for financial and emotional harm, reimbursement for treatment of diagnosed gambling disorders, and a jury trial. No class has been certified, and as of this writing neither DraftKings nor FanDuel has filed a public response to the allegations.

Neither DraftKings nor FanDuel is a sweepstakes casino, and neither is an operator we cover on this site - but the design questions at the center of this suit, whether algorithmic personalization is being used to keep losing, vulnerable bettors spending, are the same kind of questions regulators and plaintiffs' lawyers have increasingly aimed at sweepstakes operators' own VIP and loyalty programs this year.