DraftKings Employees Caught up in Extortion Scandal

Article by : Erik Gibbs Jul 1, 2024

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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.

They claim there is no evidence to support the assertion that their employees were involved in providing Doe’s information or changing his email address without authorization. DraftKings is moving to dismiss the complaint, arguing that the claims are implausible and baseless.

They further contend that they cannot be held liable for employees acting outside the scope of their employment and that the plaintiff has failed to show that DraftKings had knowledge of or assisted in the altercation. Additionally, DraftKings argues that the plaintiff’s negligence claims lack causation or breach.

An interesting legal point in this case is that Doe filed the lawsuit anonymously without court approval, which DraftKings argues prejudices their defense. They contend that Doe should not be allowed to continue using a pseudonym as it interferes with the discovery process.

The background to this case begins in January 2022, following the legalization of sports betting in New York, when Doe was recruited by a DraftKings VIP host. DraftKings then had access to Doe’s personal, banking, and financial data.

Spanky started extorting Doe in February 2023, demanding hundreds of thousands of dollars. The two had only communicated twice by phone. Spanky, who has a criminal history, including a 2012 FBI indictment for illegal sports betting, claimed he had connections with high-level DraftKings staff, which allowed him access to Doe’s information.

After Doe informed DraftKings of Spanky’s threats, additional security measures were placed on his account. Despite these assurances, Doe’s data was allegedly obtained by Spanky’s associate, Oscar Jones. Shortly afterward, Doe was physically assaulted and threatened on a subway platform.

Following the altercation, Doe reported the incident to the NYPD and other law enforcement agencies. Although a DraftKings VIP host acknowledged the security breach, it was classified as an internal matter.

Since the incident, Doe has been living in constant fear, feeling unsafe even in his own home. Surveillance video reportedly shows the masked man waiting outside Doe’s apartment before the attack.

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.