DraftKings, Crown PA Gaming and Golden Nugget Online Gaming filed a federal lawsuit on 16 July to stop Philadelphia’s investigation into their sportsbook and online casino operations. The dispute centres on a city subpoena that sought records on wagering revenue, customer targeting, promotions, VIP programmes and responsible-gambling practices.
Next.io first reported that the case was filed in the Eastern District of Pennsylvania. The filing seeks declaratory and injunctive relief, and it also asks for legal costs.
The lawsuit challenges Philadelphia’s Consumer Protection Ordinance, enacted in June 2024 under Mayor Cherelle Parker. The ordinance allows the city to pursue businesses accused of unfair or deceptive conduct affecting city residents and to seek restitution, legal costs and civil penalties.
DraftKings argues that Pennsylvania already has a statewide consumer-protection system. Under the state’s Unfair Trade Practices and Consumer Protection Law, public enforcement belongs to the attorney general and district attorneys, while the company says municipalities were left out of that structure.
The company also relies on the Home Rule Act, which bars cities from exercising powers contrary to acts of the General Assembly that apply across the Commonwealth. On DraftKings’ account, Philadelphia cannot build a parallel enforcement regime with different penalties and enforcement rules.
A second line of attack is the gaming statute. DraftKings says its state gaming licence places its operations under the Pennsylvania Gaming Control Board’s sole oversight, especially on promotions, wagering data and responsible gambling.
The filing points to a 2007 Pennsylvania Supreme Court case, Pennsylvania Gaming Control Board v. City Council of Philadelphia, in which the court blocked a referendum that would have undone casino locations approved by state regulators. Later rulings have continued to treat gaming as a matter of statewide concern.
Even so, the suit is not an automatic win. The ordinance applies across industries and does not expressly regulate betting odds, licences or game operation, so Philadelphia could argue that it is policing deception rather than gaming itself. Pennsylvania courts also require a clear conflict, or evidence that lawmakers occupied the whole field, before they strike down a local law on pre-emption grounds.
A similar lawsuit brought by the City of Baltimore against DraftKings and FanDuel is still pending in Maryland state court. After the sportsbooks’ bid to move that case to federal court was denied, they appealed.
