The separated spouse of a New Jersey father who squandered almost $1 million of their family's funds betting at DraftKings is seeking retribution. 

In a legal complaint lodged in the New Jersey state court, Lisa D’Alessandro alleges that her husband took money from her and their two kids to fund his gambling habits. She also claims that DraftKings "fostered" his addiction and prompted it to escalate uncontrollably. 

The husband, identified solely in court papers by his DraftKings username, “Mdallo1990,” wagered almost $15 million on the site from 2020 until January 2024. Mdallo1990 stole credit card information and the savings accounts of children, which were funded by gifts received during Christmas, birthdays, and baptism celebrations. 

Issue Accumulates 

During his initial year at DraftKings, Mdallo1990 never bet more than $3,775 in any given month. By 2023, this had surged to $125,000 monthly, accounting for over 70 percent of his yearly earnings, the complaint claims. 

The plaintiff asserts that Mdallo1990 "actively contributed" to worsening her husband's gambling issue, urging him to bet "significantly larger sums" until they had depleted all resources, according to the lawsuit. 

The lawsuit claims that DraftKings extracts user information to pinpoint the most financially promising clients. 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 assigned to the bettor to "extract as much money" from him as possible. 

According to the plaintiff, these hosts enticed Mdallo1990 with offers like complimentary bets and credits to offset his losses, along with “gifts and trophies” for wagering beyond his financial capacity. 

By 2022, he achieved "Onyx Elite level status," and his performance was rewarded with a complimentary vacation and a "collection of premium Apple products," along with additional merchandise, according to the lawsuit. 

'Failure in Due Diligence' 

According to the lawsuit, Mdallo1990’s VIP hosts were likely aware of his issues with gambling, as well as his marriage and children, since they interacted with him nearly every day. Furthermore, the staff at DraftKings are educated to identify indicators of problem gambling, yet did not fulfill 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, but the plaintiff alleges they did not adhere to this protocol concerning Mdallo1990. 

The VIP agents did not request bank or tax statements from their protégé since they “realized that [he] couldn’t keep depositing such large amounts of money on its site if they sought a verification.” The lawsuit alleges that they "were aware that Mdallo1990's betting funds were obtained illegally." 

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 in 2022 to three years in prison after admitting to stealing $794,000 for gambling, filed a lawsuit against BetMGM for negligence and unjust enrichment for providing him with ongoing “incentives to gamble.” 

The judge in that instance determined that New Jersey’s Casino Control Act “does not obligate casinos to prevent or halt encouraging gambling from individuals displaying problem gambling behavior.” She likewise concluded that “the casino had no common law duty of care to the plaintiff.”