Louisiana Class Action Targets FanDuel, DraftKings And Two Casino Licensees Over App Design
Three New Orleans bettors have filed a proposed class action in Louisiana against FanDuel and DraftKings, alleging the operators designed their mobile sportsbooks to encourage compulsive betting. The suit also names two casino licensees, Amelia Belle Casino and Bally’s Baton Rouge, describing them as the license holders that allow the two apps to operate in the state.
The 27-page complaint, Payton et al. v. DK Crown Holdings Inc. d/b/a DraftKings Inc. et al., was filed on Thursday afternoon in the Civil District Court of Orleans Parish, WBRZ reported. The plaintiffs have asked for a jury trial.
A product liability case
Instead of building the case around gambling losses alone, the plaintiffs argue that sports betting apps should be treated as products under the Louisiana Products Liability Act, and that the way they are built makes them unreasonably dangerous. The complaint singles out what it calls slot-style micro-wagering, bonus bets allegedly timed to periods of money trouble, and screens that let customers override their own limits with no cooling-off period.
It further alleges that the companies mine customer data to find bettors who are vulnerable or show compulsive habits, then aim marketing at them. According to the filing, an internet gaming company owned by FanDuel’s parent collects at least 186 attributes on each bettor, including how likely they are to gamble and how they respond to marketing. These are allegations, and no court has ruled on them.
“Louisiana law protects consumers from dangerously designed products, and we are asking a Louisiana court to apply it here,” said Jennifer Hoekstra, counsel for the plaintiffs. Hoekstra filed more than a dozen similar suits in other states earlier this year.
The three plaintiffs
All three named plaintiffs live in Orleans Parish. Adrian Payton, 43, says FanDuel offered him bonuses and deposit matches and that his live bet prices frequently shifted once a wager had been placed. The complaint puts the bets he covered with debit and credit cards at $88,716.27.
Toi Smith, 29, says she began using both apps at 21 after seeing ads on Instagram and X, now uses them for four or more hours daily and has wagered more than $23,500. The complaint calls Yolanda Perkins a frequent parlay player, with about $32,000 bet through FanDuel and another $37,000 through DraftKings.
The proposed class would include Louisiana residents who set up accounts with either sportsbook app and deposited money. The plaintiffs seek a refund of net deposits, compensation for financial losses and emotional distress, medical costs and attorney’s fees.
Mobile now dominates the Louisiana market
According to the complaint, more than 90% of legal sports bets in Louisiana are now placed by phone, and combined retail and mobile handle in the state passed $4.24 billion in 2025. Louisiana’s mobile sportsbooks went live in January 2022, following a 2020 referendum in which sports betting was approved parish by parish.
The case lands while DraftKings is already under review in the state. Earlier this month the Louisiana Gaming Control Board held off on a routine renewal and instead granted a temporary license through February 19, with a full hearing scheduled for February 18, as regulators look into how the operator treats losing and at-risk bettors. The Board’s questions follow reports on DraftKings’ use of AI tools to market to customers.
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