FanDuel sued in Louisiana over predatory gambling app design

FanDuel faces predatory design claim as Louisiana suit seeks full deposit refunds

A class action filed in Louisiana federal court accuses FanDuel and DraftKings of deliberately engineering their apps to exploit compulsive gamblers, with three New Orleans residents — Adrian Payton, Toi Smith, and Yolanda Perkins — named as lead plaintiffs. Each wagered more than $20,000 on one or both platforms.

The complaint alleges the companies operate a predatory data-tracking system that identifies vulnerable users and targets them with promotions, AI-driven interfaces, and product designs calculated to sustain losing behavior. The plaintiffs characterize the apps as unreasonably dangerous products, not neutral gambling platforms.

The requested remedy is unusually broad: full refunds of net deposits across all Louisiana accounts, calculated as total deposits minus withdrawn winnings.

The filing lands while DraftKings is already operating in Louisiana on a four-month license extension, after the Louisiana Gaming Control Board declined to grant a full license pending review of how the company deploys AI in its products. FanDuel is separately managing a shareholder lawsuit brought by co-founder Nigel Eccles and more than 100 co-plaintiffs.