DraftKings Sues Philadelphia Over Consumer Protection Investigation Into Sportsbook, Casino Operations
The operator says Philadelphia exceeded its authority by adopting the ordinance and that the measure conflicts with Pennsylvania's consumer protection and gaming laws.
DraftKings has sued the City of Philadelphia, seeking to block a city consumer protection ordinance and a related investigation into the operator’s gaming activities. The lawsuit asks the court to declare the Philadelphia Consumer Protection Ordinance (PCPO) invalid and prohibit the city from pursuing its investigation or any future enforcement action against the operator.
DraftKings Says State Law Preempts Philadelphia’s Investigation
The lawsuit, filed July 16 in the U.S. District Court for the Eastern District of Pennsylvania, stems from a Philadelphia investigation under PCPO and an April 24, 2026, subpoena issued to DraftKings.
According to the complaint, the subpoena stated that the city was investigating whether the operator had violated the ordinance. It further warned that information obtained could be used in an enforcement action.
DraftKings claims that city attorneys confirmed during a July 9 meeting with the company that Philadelphia was likely to bring a civil enforcement action against the operator “for alleged substantive violations of the ordinance.”
The company argues that PCPO conflicts with Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (UTPCPL). DraftKings says UTPCPL already establishes a comprehensive statewide consumer protection framework.
DraftKings further states that UTPCPL grants enforcement authority to the state attorney general and district attorneys, not municipalities. The complaint contends that Philadelphia’s ordinance improperly creates a parallel enforcement regime with different penalties, remedies and procedures.
DraftKings also argues that the city ordinance exceeds Philadelphia’s authority under the First Class City Home Rule Act. That law generally prevents the city from passing laws that conflict with state law.
Finally, DraftKings argues that Pennsylvania’s Race Horse Development and Gaming Act gives the Pennsylvania Gaming Control Board (PGCB) “general and sole regulatory authority” over licensed gaming activities. That includes the company’s online sports betting and casino gaming operations.
The complaint says that only the PGCB can regulate areas such as promotions, advertising, VIP programs and responsible gaming practices. DraftKings says Philadelphia cannot use its consumer protection ordinance to investigate or penalize those activities.
The lawsuit seeks a declaration that the ordinance is preempted by state law. It also seeks an injunction preventing Philadelphia from applying the ordinance against DraftKings.
Philadelphia Adopted the Consumer Protection Ordinance in 2024
Philadelphia enacted the Consumer Protection Ordinance in June 2024.
According to the complaint, the city acknowledged at the time that the ordinance “specifically targets deceptive business practices, including misleading financing plans, false advertising of product conditions, and other activities which are deemed illegal under existing Pennsylvania consumer protection laws.”
However, the city said a local enforcement mechanism was necessary because of the “absence of a specialized local mechanism within the mayor’s chain of command.”
The ordinance largely mirrors Pennsylvania’s consumer protection statute by prohibiting unfair methods of competition and unfair or deceptive acts or practices in trade or commerce. However, it also authorizes Philadelphia to bring enforcement actions in its own name and to seek remedies, including monetary recovery, restitution, attorneys’ fees, and civil penalties.
The complaint also notes that Philadelphia later amended the ordinance to apply retroactively to conduct that would also constitute a violation of UTPCPL.
Subpoena Targeted Marketing, User Data and VIP Programs
According to the complaint, the city’s subpoena sought documents and information related to:
- Philadelphia user revenue and wagering metrics
- Sser data collection and targeting practices
- Advertising and marketing campaigns
- Promotional offers and disclosures
- VIP programs for high-value customers.
DraftKings alleges that the subpoena requested information beyond Philadelphia-specific activity. Instead, the company says the subpoena seeks information about its broader statewide gaming operations, which it argues fall under the exclusive oversight of the PGCB.
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