DraftKings sues Philadelphia to block consumer probe

DraftKings filed a lawsuit on July 16 in the U.S. District Court for the Eastern District of Pennsylvania seeking to block Philadelphia’s Consumer Protection Ordinance and halt a city investigation into its sportsbook and online casino operations.

The suit follows a subpoena Philadelphia issued on April 24, 2026 as part of an inquiry under the 2024 ordinance. The subpoena sought records including Philadelphia user revenue and wagering metrics, data collection and targeting practices, advertising and marketing materials, promotional offers and disclosures, and details of VIP programs. The subpoena warned information could be used in an enforcement action, the filing states.

DraftKings argues the ordinance conflicts with Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, which the company describes as a statewide consumer protection framework that assigns enforcement authority to the state attorney general and district attorneys rather than to municipalities. The complaint contends the city ordinance creates a parallel enforcement regime with different penalties, remedies and procedures.

The company also invokes the First Class City Home Rule Act, saying Philadelphia exceeded its authority by passing a law that conflicts with state statutes.

DraftKings further points to the Race Horse Development and Gaming Act, saying the Pennsylvania Gaming Control Board has “general and sole regulatory authority” over licensed gaming activities, including online sports betting and casino gaming. The complaint argues areas covered by the subpoena such as promotions, advertising, VIP programs and responsible gaming practices fall under the board’s oversight and cannot be regulated or penalized by a city consumer protection law.

The complaint requests a declaration that the ordinance is preempted by state law and an injunction preventing Philadelphia from applying the ordinance to DraftKings or pursuing the current investigation.

According to the filing, city attorneys told DraftKings at a July 9 meeting that Philadelphia was likely to bring a civil enforcement action for alleged substantive violations of the ordinance. DraftKings contends the subpoena sought information beyond Philadelphia-specific activity and instead targeted broader statewide operations.

Philadelphia enacted the Consumer Protection Ordinance in June 2024. The filing notes the city acknowledged 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,” and stated a local enforcement mechanism was necessary because of the absence of a specialized local mechanism within the mayor’s chain of command.

The ordinance mirrors the state consumer protection statute in prohibiting unfair or deceptive acts in trade or commerce, but it authorizes the city to bring enforcement actions and seek monetary recovery, restitution, attorneys’ fees and civil penalties. The filing says Philadelphia later amended the ordinance to apply retroactively to conduct that would violate state law.

The litigation sets out a dispute over whether municipal consumer protection rules may be applied to regulated gaming operators. The court will decide whether to grant DraftKings’ request to bar the city from enforcing the ordinance against the company.