A federal judge has ruled that a lawsuit against DraftKings, involving an alleged extortion plot tied to a prominent sports betting influencer, can move forward.
The judge partially denied DraftKings’ motion to dismiss, allowing key claims of aiding and abetting assault and negligent supervision to proceed.
The case, brought by former VIP customer Steven Jacobs, alleges that DraftKings employees leaked his personal information to third parties, resulting in threats, harassment, and a physical attack. Jacobs, a high-stakes bettor, claims he was targeted by professional gambler Gadoon “Spanky” Kyrollos, who allegedly extorted him for money held in his DraftKings account.
Natasha C Merle, the judge, mentioned:
While plaintiff has not alleged exactly how Spanky or the masked man obtained his personal information, plaintiff has alleged that he put defendant on notice of potential criminal activity to gain access to plaintiff’s information, which then allegedly came to fruition.
The court finds the inference that DraftKings knew of this potential and failed to act to safeguard that information reasonable based on these allegations. Accordingly, plaintiff has sufficiently pled claims against DraftKings for aiding and abetting assault and battery.
Jacobs alleges that DraftKings staff, including VIP hosts, played a role in exposing his sensitive information, allowing Spanky and his associates to locate him. He further claims that in March 2023, he was assaulted by an unidentified man on a subway platform, who warned him about unpaid debts.
In October 2023, Jacobs discovered that his DraftKings account had been hacked, allegedly with the help of company insiders.
DraftKings sought to have the lawsuit dismissed, arguing that any misconduct by its employees would have been outside the scope of their official duties.
