DraftKings filed a federal lawsuit against the City of Philadelphia, seeking to halt enforcement of a local consumer-protection ordinance and to block a related subpoena investigating its sportsbook and casino operations. The company argues that Pennsylvania’s statewide gaming framework preempts Philadelphia’s ordinance, which the city used to open an investigation into DraftKings’ marketing practices, including how it promotes bets, bonuses, and other offers. DraftKings contends that only state regulators and state-level consumer-protection laws should govern licensed gambling operators, and that allowing cities to impose additional rules would create conflicts and extra burdens. The lawsuit asks the court to block both the subpoena and the city’s enforcement of the ordinance, effectively challenging Philadelphia’s legal authority in the case. Shares of DraftKings slipped 0.7% in premarket trading and are down almost 10% over the last week.
DraftKings IncDraftKings faces a federal lawsuit from Philadelphia over a consumer-protection ordinance and subpoena, creating legal and regulatory uncertainty.