Connecticut Authorities Charge 20 in Alleged DraftKings Fraud Scheme Exceeding $190,000

Connecticut law enforcement has announced charges against at least 20 state residents implicated in a sophisticated operation targeting the prominent online sports betting and casino platform, DraftKings. The alleged fraud, which occurred between August 4 and September 15, 2024, is estimated to have cost the operator more than $190,000.

The elaborate scheme involved the use of fraudulent Visa cards and compromised credit card details. Perpetrators allegedly deposited funds using these illicit payment methods, wagered the money in casino games, and then withdrew any resulting winnings to legitimate personal accounts. DraftKings' internal monitoring systems, triggered by an unusual volume of bank chargebacks associated with these fake Visa transactions, first alerted the company to the illicit activity. Subsequent investigations, leveraging geolocation data and internal account analysis, traced the operations to accounts linked to cities including Danbury, Newtown, Meriden, New Britain, and Hartford.

Official documents from the state Department of Consumer Protection’s Gaming Division detailed the modus operandi: "Accounts typically deposited with newly added Visa cards, which were later determined to be fraudulent, followed by wagering through the funds in casino game play, and withdrawal to a different payment method found to be in the name of the suspect operating the account."

Among those facing charges is Elizabeth Rodriguez of Danbury, identified as the 20th defendant, who was charged on February 10, 2026. Another key arrest involved Kelly Contreras of Waterbury, apprehended on December 29, 2025. Contreras is alleged to have deposited approximately $5,800 into a DraftKings account in August 2024, subsequently requesting a withdrawal to a JPMorgan Chase bank account registered in her name. During questioning, Contreras reportedly informed investigators that an acquaintance, identified as Manuel Pichardo, had approached her with an offer to generate money using her DraftKings account, instructing her on fund transfers after account creation and initial deposits.

Authorities are actively searching for Manuel Pichardo, alongside another individual of interest, Luis Rodriguez, as the investigation continues to unfold. This incident highlights the ongoing challenges faced by licensed gaming operators in combating fraudulent activities, even as DraftKings simultaneously expands its legitimate market presence, recently launching its sportsbook in Puerto Rico and securing a license in Arkansas.