In a distressing turn of events, a New Jersey family is now embroiled in a legal battle with DraftKings. The story begins with a father of two, known by his username Mdallo1990, who managed to gamble away a staggering amount of more than $1 million of his family's hard-earned money over a period of four years. According to a lawsuit filed on Thursday, December 6, in New Jersey Superior Court, this individual allegedly lost $942,232.32 between January 1, 2020, and January 13, 2024, due to his uncontrollable gambling habits.

Details of the Lawsuit

The lawsuit, which has come to light and been obtained by PEOPLE, alleges that the money in question belonged to the gambler's wife, Lisa D'Alessandro, with whom he is separated, and their two innocent children. DraftKings is being accused of negligence, fraud, and violating the New Jersey Consumer Fraud Act. D'Alessandro is seeking the return of all the money she claims Mdallo1990 "stole" from her and the kids.The complaint further alleges that the father "stole money from his spouse" by taking funds from her credit cards and other accounts without her permission or knowledge. He is also said to have stolen money from his kids' savings accounts, which were funded with gifts from baptisms, Christmas presents, and birthday presents.DraftKings is accused of "actively" participating in Mdallo1990's gambling addiction by targeting him with incentives, bonuses, and other gifts. This, according to the complaint, was done to create, nurture, expedite, and/or exacerbate the problem. It is claimed that DraftKings knew Mdallo1990 was "a problem gambler" through the data they actively collected, monitored, and used to entice him to deposit and gamble at exponentially higher amounts and frequencies.Matthew Litt, D'Alessandro's attorney, tells PEOPLE, "This case is the next step in protecting the public from the predatory practices of the online casinos and their VIP hosts. It is not just the compulsive gambler who suffers the catastrophic consequences, but completely innocent families too."When PEOPLE reached out for comment, DraftKings declined to provide any response.The complaint reads that the father allegedly had an annual income of approximately $175,000 in the years 2021, 2022, and 2023. In 2020, he initially started by depositing an average of $2,040.57 per month into DraftKings. However, by 2023, this number had risen significantly to $64,715.62 per month.At one point, DraftKings is accused of assigning Mdallo1990 "to be in a VIP Private Group based on the amount of money its Data showed him to be depositing." Despite the red flags, the VIP hosts are alleged to have ignored them and "did not, in fact, provide information on addicted gambling resources to Mdallo1990."In total, Mdallo1990 is said to have gambled away $15 million, including the nearly $1 million that D'Alessandro claims belongs to her and her kids.In addition to enticing the "problem gambler," DraftKings is accused of failing "to verify the source of funds which Mdallo1990 was using to gamble" despite the frequency and magnitude of his gambling.As Litt told The Independent, "You think you're building a nest egg for yourself and your family, and it turns out it's gone. This was a middle-class family. A lot of it remains on a credit card, and the rest of it is just gone."