A Michigan bettor just sued DraftKings in federal court. He claims the popular app let him rack up over $25,000 in losses by skipping a required 24-hour wait to raise spending caps. This class action targets rules in seven states meant to protect users from rash bets.
Michael Koester filed the suit on December 30, 2025, in Michigan’s Eastern District federal court. He accuses DraftKings of breaking responsible gambling laws by letting users boost deposit and wager limits right away. Koester says this design flaw fueled his big losses from 2022 to 2023.
The complaint paints a clear picture. Koester set strict limits on his account at the end of 2021. But each time he asked to loosen them, the changes kicked in instantly. No pause. No protection.
State laws demand that wait. They aim to stop impulse plays that lead to harm.
Koester’s Story Hits Home
Koester started with DraftKings in late 2021. He put in place spending guardrails to stay safe. Over two years, he bumped those up several times. Each move let him pour in more cash fast.
He lost north of $25,000. The suit ties those hits directly to the missing delays. Koester argues DraftKings knew the rules but built the app to ignore them.
This case stands out. It spotlights how apps handle self-limits. Users set them for control. But if platforms dodge the cooldown, that control slips away.
Seven States Step Up on Safeguards
The lawsuit spans Michigan plus six others. Colorado. Connecticut. Indiana. Iowa. Louisiana. New York. All have near-identical rules.
Here’s a quick look at the core requirements:
| State | Cooling-Off Rule for Limit Increases |
|---|---|
| Michigan | 24 hours before easing any limit |
| Colorado | 24-hour wait to reduce restriction |
| Connecticut | Full day pause on higher bets |
| Indiana | Delay before raising deposit caps |
| Iowa | 24 hours for wager limit changes |
| Louisiana | Mandatory hold on instant hikes |
| New York | Waiting period to loosen controls |
These laws popped up as sports betting spread after 2018. They guard against addiction in a market that saw bets top $150 billion nationwide in 2025.
DraftKings runs big in these spots. New York alone handled $26 billion in wagers last year. DraftKings grabbed over $850 million there.
Betting Boom Fuels Worry Over Addiction
Sports betting exploded across America. Legal in 38 states now. Revenue soared past $10 billion in 2025 alone for operators.
DraftKings leads the pack. It pulled in about $4.7 billion in 2024. Analysts eye $6.2 billion to $6.4 billion for full 2025. Sportsbook makes up most of that. Market share hovers near 37 percent.
But risks grow too. Problem gambling calls spiked 148 percent in legal states by late 2025. A National Council on Problem Gambling survey found 17 percent of sports bettors show risky habits. Young men face the brunt.
Apps like DraftKings offer tools. Self-exclusion. Reality checks. Deposit caps. Yet this suit claims the basics fall short.
Past cases hit DraftKings hard. Cities like Baltimore sued over predatory ads. Bettors blamed VIP perks for addiction. Courts tossed some. Others drag on.
Regulators watch close. States fined books for weak safeguards before. This could push tougher tech fixes.
Users feel it daily. Limits help some stay in check. Skip the wait, and losses mount quick. Families pay the price.
One bettor shared online frustration. Limits drop for winners. But losers get free rein. Fair?
Path Forward for Players and Platforms
DraftKings has not commented on this suit yet. The company often touts its safety steps. But silence leaves questions.
Bettors gain power here. Know your state’s rules. Check app settings often. Set firm limits early.
The industry eyes change. More states may tighten cooldowns. Apps could face redesigns.
This fight matters. It tests if big profits trump player protection in America’s betting gold rush.
Koester’s bold move spotlights real pain. Sports betting thrills millions. But unchecked apps wreck lives. Stronger rules could save futures. Hope rises for balance.
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