A former DraftKings customer filed a lawsuit against the company late last week over its data-sharing practices.
Jeffrey Wan claims that the American gambling giant shared customers’ video-viewing habits without their permission.
A legal document filed in the U.S. District Court for the Southern District of New York reads, “Plaintiff Wan never consented, agreed, nor permitted Defendant to disclose Plaintiff’s personally identifiable information (PII) and viewing information to Facebook or other third parties and certainly did not do so for purposes violative of the Video Privacy Protection Act (VPPA).”
Enacted in 1988, the VPPA prohibits video service providers from disclosing information linked to PII without customer consent.
How did DraftKings allegedly collect the data?
Wan’s legal team alleges that the gaming operator used Facebook business tools, including the Facebook pixel code and Conversions API (CAPI), to access customers' PII. These tools track user interactions and website activity. The lawyers say DraftKings collected data on the videos bettors watched and the games they showed the most interest in.
“The Facebook pixel that Defendant installed and used tracked, recorded, and sent Facebook its customers’ granular Website and Apps activity, including the names of specific video games and other audio visual content that customers requested and/or viewed each time through Defendant’s Website and Apps. The information is not merely metadata,” the legal team noted.
DraftKings operates both an online sportsbook and casino, the latter of which is available in five states: Connecticut, Michigan, New Jersey, Pennsylvania, and West Virginia.
Caught up in legal battles
This lawsuit is just the latest in a pile that have been filed against the betting giant. Earlier this month, another DraftKings customer and his family sued the company, claiming VIP hosts on the site fueled his gambling addiction. They allegedly targeted him with incentives and bonuses, including free bets and loss credits.
Meanwhile, Senators Mike Lee and Peter Welch are looking to investigate both DraftKings and FanDuel for “Possible Anticompetitive Conduct.”
Lee took to social media platform X:
We can’t allow online gambling companies like @FanDuel & @DraftKings to violate antitrust laws, especially as more Americans grapple with the effects of this industry on our society.
— Mike Lee (@SenMikeLee) December 6, 2024
Glad to join @SenPeterWelch requesting that @linakhanFTC investigate and protect consumers. pic.twitter.com/Jh6EaHjKk3
Lee wrote, “Their market power is being challenged by a number of innovative companies. Yet rather than competing with these new entrants on the merits, public reports have alleged that FanDuel and DraftKings, together and through their trade association the Sports Betting Alliance, have undertaken a coordinated effort to pressure crucial business partners not to do business with these new players.”
In the summer, the National Football League Players Association (NFLPA) and the Major League Baseball Players Association (MLBPA) both filed name, image, and likeness (NIL) lawsuits against DraftKings. Last month, DraftKings filed a motion to dismiss the NFLPA lawsuit.
Still, the company continues to thrive in the U.S. sports betting market. For the third quarter of 2024, DraftKings reported $742 million in revenue, marking a 36.7% year-over-year increase.
“DraftKings delivered strong performance in the third quarter with the return of NFL and college football,” said DraftKings’ CEO and co-founder Jason Robins. “Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”
