DraftKings Lawsuit: Every Case, and Whether Anyone Gets Paid
Questions about this case?
AI Legal Assistant · free · answers in seconds · general information, not legal advice
As of September 30, 2026 there is no DraftKings settlement for sports bettors or casino players — no fund, no claim form. What is driving the news: a New York Times report of September 19, 2026 on how DraftKings aimed its promotions, a growing set of gambling-addiction lawsuits, class actions over “risk-free” and “No Sweat” bets, and new suits over DraftKings Predictions. The one real payout, the $10 million NFT settlement, closed its claims in 2025, and its checks are on hold.
Editorially Reviewed — Content reviewed for accuracy using published legal research, government data, and verified court records. See our methodology
Reviewed by Leonard Goldberg, Editor · Last updated
What the Lawsuits Say DraftKings Did
Several different fights are going on at once. They are not one lawsuit.
Promotions. Class actions in Massachusetts, New Jersey, Illinois and Pennsylvania allege that “risk-free” and “No Sweat” bets, the new-customer offer of up to 1,000 in site credits, and casino deposit matches were unfair or misleading.
Addiction. Individual and class suits allege the app is designed to encourage continuous, compulsive betting, and that targeted promotions, push notifications, data-driven personalization and VIP hosts were aimed at people showing problem-gambling behavior.
Legality. Suits in California, the District of Columbia and South Carolina, and two federal class actions in Massachusetts over DraftKings Predictions, allege that particular products are illegal gambling in the states they name, and try to recover losses.
NFTs. Buyers alleged DraftKings sold NFTs as unregistered securities. That case settled.
In its SEC filings DraftKings says it intends to vigorously defend the pending cases.
Case Details
Promotion cases: Scanlon (Massachusetts Superior Court, Business Litigation Session, filed December 8, 2023), Youngs (U.S. District Court for New Jersey, filed January 7, 2025), the Beyer case (filed in Cook County, now in the Northern District of Illinois) and the second Macek case (Eastern District of Pennsylvania).
Addiction cases: the first Macek case (Eastern District of Pennsylvania, now on appeal), Farley (Southern District of New York, filed April 27, 2026, also naming FanDuel entities) and, as of August 7, 2026, fourteen individual product-liability suits in Massachusetts, Illinois, New Jersey and Pennsylvania state courts.
Legality cases: Zhen v. DraftKings (Northern District of California), Chan and Gordon (District of Massachusetts, DraftKings Predictions) and Hughes (Charleston County, South Carolina). A District of Columbia suit against DraftKings and other sportsbooks was dismissed on March 26, 2026 and is on appeal.
NFT settlement: Dufoe v. DraftKings, No. 1:23-cv-10524 (D. Mass.), before Judge Denise J. Casper.
Cities: Baltimore sued DraftKings and FanDuel on April 3, 2025. DraftKings itself sued Philadelphia on July 17, 2026, challenging the city's April subpoena about its advertising; the city moved to dismiss on September 15, 2026.
Status on September 30, 2026: No Settlement for Bettors
Massachusetts: on February 18, 2026 the judge denied DraftKings summary judgment on the consumer-protection (Chapter 93A) claim in Scanlon, so it continues.
New Jersey: fraud claims over the “risk free” promotion survived on November 19, 2025.
Illinois: the motion to dismiss was denied on November 25, 2025; the case is in discovery.
Pennsylvania: the promotion case survived on June 17, 2026. The addiction class case was dismissed on March 23, 2026 and is on appeal.
New York: the De Leon case was dismissed on December 11, 2025.
One certified class: a federal court in Indiana certified a class on December 9, 2025 of bettors whose winning bets on the October 24, 2023 Lakers vs. Nuggets game DraftKings cancelled as an “obvious error.” Both sides' summary-judgment motions were pending.
NFT settlement: approved July 30, 2025. According to the settlement website, a motion filed on September 24, 2026 must be resolved before distribution checks go out.
Follow this case
There's no claim deadline yet. We'll email you if a settlement opens a claim period.
Are You Part of Any of These Cases?
It depends on which product you used, and where.
NFT buyers: the class covers anyone who bought, sold, held or otherwise transacted in NFTs in a DraftKings account from August 11, 2021 through judgment. The claim deadline was July 21, 2025 and has passed. If you filed, there is nothing to do now; the administrator is A.B. Data, (877) 883-9186.
“Risk-free”, “No Sweat” and deposit-match customers: the complaints propose national and state classes of people who opted into these offers and lost a bet, or deposited for the up-to-1,000 site-credit match. DraftKings' August 7, 2026 report shows none of these classes certified. There is no sign-up; if one is certified or settles, class members get notice.
People harmed by gambling: addiction claims are mostly individual lawsuits filed through a lawyer. A proposed addiction class in Pennsylvania was dismissed and is on appeal; another, Farley in New York, is at an early stage.
Lakers vs. Nuggets bettors: class notice went out after a January 20, 2026 court order.
Is There Any Money?
One ruling points the other way. On July 29, 2026 a federal judge in California dismissed with prejudice every claim for money in Zhen v. DraftKings, holding that California public policy bars recovery of gambling losses without express statutory authorization. Only claims for a court order remain. That ruling covers that case and California law, not every state.
For NFT buyers: $10 million in total, minus attorney fees of up to $3,333,333 and costs, split among valid claims by recognized loss. Nothing has been paid yet.
If you played Playstudios' social-casino apps such as myVEGAS, a separate settlement is open: see the Playstudios myVEGAS settlement.
DraftKings Lawsuit Timeline
- 1
November 2022 — Accounts Hijacked
Attackers use passwords leaked elsewhere to log into DraftKings accounts. 67,995 people were reported to the Maine attorney general; about $300,000 was withdrawn, and DraftKings said it restored those amounts.
- 2
December 8, 2023 — First Promotion Class Action
Scanlon is filed in Massachusetts over the up-to-1,000 site-credit offer. Similar suits follow in New Jersey, Illinois, New York and Pennsylvania in 2025.
- 3
July 30, 2025 — $10 Million NFT Settlement Approved
Judge Denise J. Casper grants final approval in Dufoe v. DraftKings. The claim deadline, July 21, 2025, has already passed.
- 4
December 19, 2025 — DraftKings Predictions Launches
DraftKings enters prediction markets under federal CFTC oversight. By August 3, 2026, three suits claim its sports contracts are illegal gambling in certain states.
- 5
March 24 – July 29, 2026 — Addiction Suits and a California Ruling
Fourteen individual product-liability suits are filed from March 24 on. On July 29, 2026 a California federal judge rules that gamblers there cannot recover their losses in Zhen.
- 6
September 2026 — Scrutiny Grows
September 16: a Pennsylvania bettor's VIP-manager suit is in federal court. September 19: the New York Times report. September 24: Massachusetts regulators announce an AI review, and a motion puts NFT checks on hold.
Three Things to Watch For
A famous brand, a paused payout and a lot of addiction advertising is the mix scammers look for:
“Your NFT settlement check is ready — pay a fee”
Checks are on hold until the court resolves the September 24, 2026 motion. The real administrator is A.B. Data. No legitimate administrator charges a release fee or asks for your crypto wallet's recovery phrase.
“Get your DraftKings losses refunded”
No DraftKings fund repays gambling losses. A page promising a refund is advertising for lawyers, not a claims process. Do not send bank statements or your account login to anyone to “start a claim.”
“Verify your account for the data-breach settlement”
We found no DraftKings data-breach settlement, and DraftKings' SEC filings list no lawsuit over the attack. The 2022 attack worked because of reused passwords, and a login link in a text or email is how the next batch gets stolen. Open the app yourself and use a unique password.
DraftKings Lawsuit — Questions People Actually Ask
Is there a DraftKings class action settlement I can file for?
Not for betting or casino play. As of September 30, 2026 no promotion or addiction case has settled. The only settlement is the $10 million NFT deal, and its claim deadline was July 21, 2025. For deals that are open right now, see our open class action settlements list.
What is the DraftKings lawsuit about “No Sweat” bets?
Several class actions allege that “risk-free” and “No Sweat” bets and the up-to-1,000 site-credit offer were misleading. The New Jersey court let fraud claims over the “risk free” promotion proceed on November 19, 2025; Pennsylvania's promotion case survived on June 17, 2026. None has been certified or settled. Baltimore's city lawsuit makes similar claims about “bonus bets” and “no-sweat bets.”
Can I sue DraftKings for gambling addiction?
People are trying. At least fourteen individual product-liability suits were filed from March 24, 2026. In Illinois, the judge refused on February 26, 2026 to let DraftKings appeal early on whether an app can be a “product.” But a Pennsylvania court dismissed an addiction class case on March 23, 2026, now on appeal. The same design theory drives the social media addiction lawsuits. If gambling is causing harm now, the National Problem Gambling Helpline, 1-800-MY-RESET, is run by the National Council on Problem Gambling and connects you with help in your state.
When will the DraftKings NFT settlement pay?
Not yet. The settlement was approved on July 30, 2025, but according to the settlement website a motion filed on September 24, 2026 must be resolved before checks are sent. Only people who filed by July 21, 2025 will be paid. Questions go to the administrator at (877) 883-9186.
Was my DraftKings account part of a data breach?
In November 2022 attackers logged into accounts using passwords stolen from other sites. The exposed details could include name, address, phone, email, balance and the last four digits of a payment card, not Social Security numbers. DraftKings' SEC filings describe the attack but list no lawsuit or settlement over it, and we found no claim form.
Why are people suing over DraftKings Predictions?
Three suits filed between July 28 and August 3, 2026 claim that sports event contracts on DraftKings Predictions are illegal gambling in states such as California, Texas and South Carolina, and seek to recover money spent. These are private suits, not state enforcement actions. DraftKings says the product runs under CFTC oversight; as of DraftKings' August 7, 2026 report, no court had ruled on these claims.
What did the New York Times report, and is it a lawsuit?
It is a news report, not a lawsuit. Per coverage of the September 19, 2026 article, DraftKings built an “elasticity” model in 2023 that scored casino customers by how much they were expected to lose per promotional dollar. DraftKings said its promotions target sustained, engaged use, “not toward customers based on their losses.” On September 24, 2026 the Massachusetts Gaming Commission announced a review of how operators use AI, starting with DraftKings.
Is there a DraftKings shareholder lawsuit?
Not an open one in its filings. The securities class action over SBTech-related disclosures was dismissed with prejudice on January 10, 2023, and the shareholder suit over NFTs was dismissed with prejudice by an order of March 3, 2026 with no appeal. DraftKings' quarterly report of August 7, 2026 lists no pending securities class action.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.