Late last week, former DraftKings customer Jeffrey Wan filed a lawsuit against the company over their data-sharing practices. He claims that the industry leader shared his video-viewing habits without his permission. The Video Privacy Protection Act (VPPA) was enacted in 1988. It prohibits video service providers from disclosing information that can be linked to someone’s personally identifiable information (PII). The legal document filed last week said Mr. Wan never consented to releasing his information.
What did DraftKings do to collect data allegedly?
According to Wan’s legal team, DraftKings used Facebook business tools, including the Facebook pixel code to access his information. These tools tracked Mr. Wan’s user interactions and website activity. His lawyers claim that DraftKings collected data and used that to target games Wan had more interest in.
The Facebook pixel code was then installed and used to track the customer’s granular activity. That included specific names of video games and other audio-visual content. Wan’s lawyers claimed that the information was not merely “metadata.” In America, DraftKings operates both online and retail locations in five states. That includes Connecticut, New Jersey, Michigan, Pennsylvania, and West Virginia.
Did DraftKings have any other legal trouble in 2024?
Despite being one of the industry giants, DraftKings still finds itself in legal trouble. The lawsuit filed by Jeffrey Wan is just the latest that the company is dealing with. Earlier this month, another former DraftKings customer and his family sued the company. They claimed that the VIP hosts fueled his gambling addiction. Allegedly, the man was targeted with incentives and bonuses that included free bets and loss credits.
Senators Mike Lee and Peter Welch want to investigate DraftKings and FanDuel for “Possible Anticompetitive Conduct.” Lee claims that DraftKings and Fanduel are using the power of their trade association, the Sports Betting Alliance. They allegedly have undertaken a coordinated effort to pressure crucial business partners to not do business with new players.
Just this summer, the NFLPA and MLBPA filed name, image, and likeness lawsuits against DraftKings. In November, DraftKings filed a motion to dismiss the lawsuit. Despite some of the trouble DraftKings has run into, the company is still one of the top sportsbooks in the United States. In Q3 of 2024, DraftKings reported $742 million in revenue.
