DraftKings Employees Caught up in Extortion Scandal

DraftKings staff have been accused of leaking personal information to a sports bettor as part of an extortion plot. A complaint was filed in the New York Supreme Court, Queens County, alleging that DraftKings employees provided a sports bettor, Gadoon “Spanky” Kyrollos, with the personal details of a customer referred to as "John Doe."

This incident culminated in a masked man assaulting and threatening Doe on March 30, 2023, in Long Island City, NYC.

According to the complaint, the masked assailant demanded $500,000 from Doe on behalf of Spanky. It is alleged that DraftKings employees not only provided Doe’s address and personal information but also changed the email address on his sports betting account to facilitate the plot.

DraftKings has been accused of aiding and abetting assault, battery, making death threats, and hacking into Doe's computer.

Doe asserts that his life has been drastically affected by this incident, leading him to seek damages for assault, battery, emotional distress, and negligence. DraftKings has firmly denied these allegations, describing them as inaccurate and baseless.

DraftKings’ Defense

• Denies any involvement or evidence connecting its employees to the alleged actions.

• Claims the plaintiff’s assertions are implausible and unsupported.

• Argues that employees, if involved, acted outside the scope of their employment.

Legal Complications

• DraftKings argues the lawsuit should be dismissed due to lack of causation or breach in the negligence claims.

• The company contends that Doe’s use of a pseudonym without court approval prejudices their defense.

• They insist anonymity interferes with the discovery process and request that Doe reveal his identity.

Case Background

• In January 2022, following the legalization of sports betting in New York, Doe was recruited by a DraftKings VIP host, granting the company access to his personal and financial data.

• Spanky began extorting Doe in February 2023, demanding large sums and claiming insider connections within DraftKings.

• Despite Doe alerting DraftKings to the threats and enhanced security measures being implemented, his information was allegedly accessed by Spanky’s associate, Oscar Jones.

Afterward, Doe was physically assaulted and threatened on a subway platform. The NYPD and other law enforcement agencies were notified, and surveillance reportedly showed the masked man waiting outside Doe’s apartment before the attack.

Since the incident, Doe has been living in constant fear, feeling unsafe even in his own home.

Doe is seeking punitive damages, compensatory damages of at least $1 million, attorney fees, and a judgment holding DraftKings liable for the claims made in the complaint.