DraftKings has taken legal action in Philadelphia, filing a lawsuit on Thursday aimed at preventing the enforcement of a consumer protection ordinance and a subpoena issued earlier this year. The lawsuit, lodged in the U.S. District Court for the Eastern District of Pennsylvania, challenges the validity of the Philadelphia Consumer Protection Ordinance (PCPO).
DraftKings contends that the PCPO, which was enacted in 2024, contradicts and is preempted by Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (UTPCPL). The company asserts that the PCPO not only exceeds the city’s authority but is also independently unenforceable regarding DraftKings’ licensed gaming operations as outlined under the Pennsylvania Race Horse Development and Gaming Act.
Prior to initiating the lawsuit, DraftKings engaged in discussions with Philadelphia officials on July 9 to address the PCPO. During that meeting, city representatives reiterated their plans to enforce the ordinance against DraftKings.
Signed into law by Mayor Cherelle Parker, the PCPO targets misleading business practices, which encompass deceptive financing plans and false advertising of product conditions. Following the issuance of a subpoena to DraftKings, the city aims to investigate whether the gaming operator has breached the ordinance and to decide on potential enforcement measures.
The subpoena, distributed in April 2026, seeks detailed information about DraftKings' business practices, particularly focusing on its VIP program and procedures related to problem gambling.
In its lawsuit, DraftKings claims that the PCPO undermines the UTPCPL by replicating its key prohibitions against unfair or deceptive practices, while also introducing a municipal enforcement structure managed by the City Law Department. Furthermore, DraftKings argues that Philadelphia's reference to the PCPO in connection with their operations encroaches on the state’s comprehensive gaming regulatory framework, which is overseen by the Pennsylvania Gaming Control Board.
DraftKings is requesting a declaratory judgment to establish that the PCPO is not applicable to its gaming activities and is also seeking injunctive relief to stop Philadelphia from moving forward with civil enforcement actions under the ordinance.
SBC Americas reached out to DraftKings for a comment regarding the lawsuit but has not yet received a response.
In addition to this lawsuit, DraftKings is currently involved in a separate class action in Philadelphia concerning the company’s deposit bonus offers for users. Filed in April 2025, the class action initially included five customers and questions the terms of a $1,000 deposit bonus, which the plaintiffs claim are overly complex and difficult to navigate. They also argue that users must place substantial wagers to fully utilize the promotion’s value. A federal judge recently denied a motion by DraftKings to dismiss the claims presented in the class action.
