DraftKings aims to block Philadelphia consumer protection probe

DraftKings has sued the City of Philadelphia in federal court, seeking to halt an investigation under a 2024 municipal consumer protection ordinance.

US. DraftKings, Crown PA Gaming, and Golden Nugget Online Gaming are named as plaintiffs in a complaint to the US District Court for the Eastern District of Pennsylvania that aims to halt an investigation under a 2024 municipal consumer protection ordinance. The move comes after the City subpoenaed DraftKings in April for records pertaining to VIP programmes, promotional credits and bonuses, sports betting and problem gambling rules.

DraftKings claims the against the Philadelphia Consumer Protection Ordinance (PCPO) is incompatible with the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), which concentrates public enforcement power with the Attorney General and district lawyers. The suit also contends the PCPO exceeds the City’s authority under the First Class City Home Rule Act and is preempted as applied to DraftKings’ licensed gaming activities regulated by the Pennsylvania Gaming Control Board (PGCB) under the Pennsylvania Race Horse Development and Gaming Act.

The company is seeking a declaratory judgment that the PCPO is invalid facially and as applied, plus injunctive relief prohibiting the City from pursuing enforcement under the ordinance against its licensed gaming operations.

A DraftKings spokesperson said: “The city has acted beyond the scope of its authority on matters governed by state law and regulated by the Pennsylvania Gaming Control Board. DraftKings remains committed to operating responsibly and in full compliance with Pennsylvania law, and we look forward to addressing this issue through the legal process.”