DraftKings Hit with Lawsuit Over Alleged Misleading Bonus Advertising

DraftKings is facing serious allegations in a New York district court, where a class action lawsuit has been filed accusing the sports betting giant of misleading marketing practices surrounding its deposit bonus promotions. The case, filed by Nerye Aminov, accuses the company of violating New York General Business Law, as well as committing fraudulent inducement, intentional misrepresentation, and unjust enrichment.

The lawsuit, initially lodged in the New York Supreme Court of Queens County, was later moved to the U.S. District Court for the Eastern District of New York at DraftKings’ request.

Disputed Deposit Bonus Promotion

Central to the lawsuit are allegations that DraftKings employed deceptive tactics to entice new s through its deposit bonus offer. Aminov argues that DraftKings’ promotion of a “$1,000 Deposit Bonus” was misleading, as the bonus was not immediately credited to his after making his first deposit. Instead, the operator allegedly pays out bonuses incrementally, a detail that Aminov claims was not clearly disclosed.

Aminov asserts that these practices disproportionately impact s in New York, who he claims are unlikely to fully benefit from the bonus. According to the lawsuit , DraftKings failed to clarify that the d bonus is calculated as 20% of a ’s initial deposit, requiring a $5,000 deposit and at least $25,000 in wagers to unlock the full $1,000 bonus. Aminov describes this approach as intentionally vague, leaving s unable to reasonably understand the promotion’s .

The complaint further claims that DraftKings’ promotional tactics—spanning TV, social media, print, and online ments—were designed to exploit new bettors, constituting unfair business practices.

Aminov’s Personal Experience

Aminov recounted his own experience with the deposit bonus promotion, which took place in January 2022. After depositing $500 with the expectation of receiving a $1,000 bonus, he was credited with just $100. Aminov claims he would not have signed up for DraftKings had he been aware of the operator’s alleged misrepresentation of its bonus .

The lawsuit seeks to halt DraftKings’ marketing practices and demands restitution for s who suffered financial losses. Aminov is also pursuing statutory damages and either the return of his initial deposit or the full $1,000 bonus.

The lawsuit aims to represent a nationwide class of DraftKings s who responded to the $1,000 deposit bonus promotion, along with a specific subclass of New York residents who were similarly affected.

DraftKings’ Broader Legal Challenges

This is not the first time DraftKings’ marketing practices have come under legal scrutiny. The company is also facing a class action lawsuit in Massachusetts, where plaintiffs Shane Harris and Melissa Scanlon allege that DraftKings violated state consumer protection laws through its deposit bonus advertising.

Although a Massachusetts judge recently denied DraftKings’ motion to dismiss that case, the company did experience a legal win in August when a separate class action suit brought by Samantha Guery over “risk-free” promotions was voluntarily dropped.

DraftKings now faces mounting pressure to address its advertising strategies as legal challenges from multiple states highlight growing concerns over its promotional practices.

Source:

”Another false advertising lawsuit filed against DraftKings”, sbcamericas.com, December 16, 2024.