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Law360: DraftKings Tries To Put Out Privacy Fire As Bettors Squirm

November 23, 2022

DraftKings vowed to “make their customers whole” following a series of unauthorized withdrawals from the accounts of its users totaling US$300,000. The online sportsbook appears to be clear of any legal liability, but the case law on the specific circumstances of the incident is uncommon, according to attorneys. “It’s a somewhat unresolved area whether the company has more obligations than just notifying once they learned that someone has obtained these credentials improperly and accessed the account,” O’Melveny & Myers LLP special counsel Scott W. Pink said. “I don't think there’s any clear case law on that question specifically.” Pink added that arguments “could be made on both sides. [A user] could say DraftKings could have done more to prevent this from happening, and DraftKings can say, ‘What else can we do? You are responsible for your own password and code.’”

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