DraftKings Inc., Crown PA Gaming LLC, and Golden Nugget Online Gaming LLC sued the City of Philadelphia on Thursday over its municipal consumer protection enforcement regime, which they say is preempted by state law.
The Philadelphia Consumer Protection Ordinance was enacted in 2024 and created a separate consumer protection regime beyond the state’s Unfair Trade Practices and Consumer Protection Law. The PCPO specifically targeted deceptive practices including misleading financial plans.
DraftKings said the City invoked the PCPO against it in April, the complaint filed in the US District Court for the Eastern District of Pennsylvania said.
In addition to the Unfair Trade Practices law, Pennsylvania’s Gaming Act authorizes forms of lawful gambling including interacting gaming and sports wagering, and DraftKings’ online sports betting services operate under regulatory approvals and supervision of the Pennsylvania Gaming Control Board, the complaint said.
DraftKings said the PCPO is preempted by the state consumer protection law and the Gaming Act and is therefore unenforceable as applied to its licensed gaming activities.
The company is asking for an injunction blocking the PCPO.
The city didn’t immediately respond to a request for comment.
DraftKings is represented by Stradley Ronon Stevens and Young LLP and Coblentz Patch Duffy & Bass LLP.
The case is DraftKings Inc. v. City of Phila., E.D. Pa., No. 2:26-cv-04953, complaint filed 7/16/26.