DraftKings filed a lawsuit in Philadelphia on Thursday in an effort to prevent the city from enforcing a consumer protection ordinance and a subpoena filed earlier this year.
According to court documents filed in the U.S. District Court for the Eastern District of Pennsylvania, DraftKings is suing the City of Philadelphia to challenge the “validity and enforceability of the Philadelphia Consumer Protection Ordinance (PCPO).”
DraftKings claims that the PCPO, enacted in 2024, conflicts and is preempted by Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (UTPCPL). The Boston-based gaming giant also claims the PCPO exceeds the city’s authority and is “independently preempted and unenforceable as applied to DraftKings’ licensed gaming activities under the Pennsylvania Race Horse Development and Gaming Act.”
Before filing suit, DraftKings met with the City of Philadelphia on July 9 to discuss the PCPO. During the meeting, the city confirmed its intention to invoke the ordinance against DraftKings
The PCPO was signed by Mayor Cherelle Parker and targets deceptive business practices. The business practices include misleading financing plans and false advertising of product conditions. Philadelphia issued a subpoena to DraftKings under the PCPO to determine whether the operator violated the ordinance and to determine any enforcement action to be taken.
The subpoena, issued in April 2026, aims to gather information related to DraftKings business practices, including its VIP program and problem gambling procedures.
DraftKings cites Pennsylvania regulator in argument
In the complaint, DraftKings argues that the PCPO is “preempted by and conflicts with the UTPCPL because it copies the UTPCPL’s core prohibition on—and nearly all of its enumerated standards for—unfair or deceptive practices, while supplementing and altering the General Assembly’s statewide enforcement regime with a municipal enforcement regime administered by the City Law Department.”
DraftKings also argues that Philadelphia citing the PCPO in relation to the company’s business practices “separately intrudes into Pennsylvania’s comprehensive gaming regulatory framework.” DraftKings bases its argument on the statewide regulatory authority of the Pennsylvania Gaming Control Board over its licensed gaming activities.
In its complaint, DraftKings is seeking a declaratory judgment that the PCPO is invalid and cannot apply to the operator’s gaming activities. The company is also seeking injunctive relief to prevent Philadelphia from pursuing civil enforcement action under the PCPO.
SBC Americas reached out to DraftKings for comment on its suit in Philadelphia but has not yet received a resposne.
DraftKings facing class action in Philadelphia
DraftKings’ legal proceedings in Pennsylvania also include a class action lawsuit filed against the company over the deployment of deposit bonuses to users.
The suit was filed in April 2025 and initially included five DraftKings customers. The legal action focuses on the terms of the operator’s $1,000 deposit bonus. The plaintiffs claim that the promotion has terms that are complex and difficult to understand. The group also asserts users must wager a substantial amount to maximize the value of the promo.
The suit focuses both on DraftKings sports betting and online casino deposit bonuses. In April, a federal judge denied a DraftKings motion to dismiss claims included in the suit.
