TLDR
- DraftKings, Crown PA Gaming, and Golden Nugget Online Gaming filed a lawsuit against Philadelphia
- The suit challenges the city’s Consumer Protection Ordinance (PCPO) passed in 2024
- Philadelphia issued a subpoena in April 2026 demanding company records
- DraftKings says the ordinance conflicts with state gambling and consumer laws
- The company wants a court to block the city from enforcing the ordinance
DraftKings has taken legal action against the City of Philadelphia. The sportsbook company wants a federal court to stop the city from investigating its gambling operations.
Two other gambling companies joined the lawsuit. Crown PA Gaming LLC and Golden Nugget Online Gaming are listed alongside DraftKings in the complaint.
The dispute centers on a city law called the Consumer Protection Ordinance, or PCPO. Philadelphia passed this law in June 2024.
City officials said the ordinance was meant to stop deceptive business practices. This includes things like misleading financing plans and false advertising.
What Sparked the Lawsuit
The conflict grew after Philadelphia sent DraftKings a subpoena on April 24, 2026. The subpoena asked for a wide range of company records.
City officials requested data on user revenue, advertising campaigns, and promotional offers. They also asked about VIP programs and how the company collects customer data.
The subpoena stated its goal was to find out if DraftKings violated the PCPO. It also warned that any information gathered could be used in a future enforcement action.
DraftKings argues the city has no right to demand this information. The company says Pennsylvania law already covers this area and gives that authority to the state, not the city.
DraftKings’ Legal Argument
DraftKings says the PCPO copies and expands a state law called the Unfair Trade Practices and Consumer Protection Law, or UTPCPL. That state law already defines what counts as an illegal business practice.
The state law also limits who can enforce it. Only the Attorney General and district attorneys have that power under state rules.
DraftKings claims the city ordinance changes these rules. It argues the PCPO lets Philadelphia enforce its own version of the law, using its own penalties and its own process.
The company also points to Pennsylvania’s Gaming Act. This law gives the Pennsylvania Gaming Control Board full authority over sports betting and online casino activity in the state.
DraftKings operates under licenses from that state gaming board. The company is already inspected and regulated by state offices built specifically for gambling oversight.
Because of this, DraftKings argues the city has no legal ground to investigate its advertising or customer data practices. The company says this area belongs to state regulators alone.
The lawsuit also cites Pennsylvania’s Home Rule Act. This law stops Philadelphia from passing rules that conflict with or go further than state law.
DraftKings argues the PCPO breaks this rule. The company says the city overstepped its authority when it created the ordinance in 2024.
What DraftKings Wants From the Court
DraftKings is asking the court to declare the PCPO invalid. The company wants this ruling to apply both broadly and specifically to its own gambling business.
The company is also asking for an injunction. This would legally stop Philadelphia from investigating or taking enforcement action against DraftKings under the ordinance.
As of the filing, the case is pending in federal court. No ruling has been issued yet on whether the city’s ordinance can move forward against the sportsbook operator.
