DraftKings (DKNG) filed a federal lawsuit against the City of Philadelphia to block a new local consumer-protection ordinance. The company also seeks to halt a city investigation into its marketing and operational practices.
The investigation involves a subpoena for documents related to promotions, bonuses, and customer offers. DraftKings argues that Pennsylvania's statewide gaming laws preempt local ordinances like Philadelphia's.
The legal challenge follows growing scrutiny over sports-betting marketing and its impact on consumers prone to gambling problems. Shares of DraftKings saw a slight decline in premarket trading after the news.