DraftKings Under Fire for Allegedly Misleading Promotions

Lawsuits Filed in New Jersey, Illinois, and Kentucky

On January 7, a class action lawsuit was filed in the U.S. District Court for New Jersey by Matthew Youngs, a New Jersey resident. Representing other similarly impacted individuals, Youngs alleges that DraftKings’ promotional strategies have led s to significant financial losses and even gambling addiction. The legal complaint criticizes promotional campaigns such as “No Sweat First Bets” and “Casino Deposit Match Promotions,” which are said to create a false sense of security for s.

According to the lawsuit, these “risk-free” bets offer refunds not as cash but as non-cash “Bonus Bets” that come with restrictive conditions, often expiring before they can be used effectively. Youngs claims these misleading led to his forfeiture of initial deposits and significant losses.

On the same day, similar lawsuits were filed in Illinois and Kentucky, all challenging DraftKings’ marketing strategies. These lawsuits accuse the company of misrepresenting its offers, enticing s to wager more money with the promise of risk-free betting, which the plaintiffs argue is far from the truth.

The lawsuits collectively highlight that DraftKings’ promotions, while appearing attractive, impose that are not made clear to s. For instance, deposit match offers allegedly incentivize s to spend large amounts but only provide virtual tokens instead of cash. Additionally, plaintiffs claim DraftKings targets inexperienced gamblers, particularly young men, with aggressive advertising and vague promotional .

Attorney Issac Green of Loevy + Loevy, representing several plaintiffs, remarked, “Consumers should be able to rely on one of the leading sports gambling outfits in the country to do what it promises and play by the rules.” Green further emphasized that the lawsuits allege DraftKings manipulates customers by making misleading claims about risk-free betting.

Scrutiny Expands Across the U.S.

Beyond these lawsuits, DraftKings is facing mounting criticism across the U.S. as states like Ohio and Massachusetts impose tighter regulations on gambling promotions. In Massachusetts, Shane Harris and Melissa Scanlon, ed by the Public Health Advocacy Institute, filed a lawsuit accusing DraftKings of deceptive advertising for a $1,000 deposit bonus. A Massachusetts judge denied DraftKings’ motion to dismiss the case last August, signaling that these legal challenges are gaining traction.

New York has also emerged as a key battleground. In a recent case, Nerye Aminov filed a class action suit alleging that DraftKings’ deposit bonus were misleading. Aminov claims the promotion required a $5,000 deposit and at least $25,000 in wagers to access the full $1,000 bonus— that were not transparently disclosed.

DraftKings’ legal troubles are not limited to these cases. Other lawsuits highlight similar concerns, including restrictions on betting limits for winning customers and alleged targeting of vulnerable s. Plaintiffs in these cases are seeking injunctive relief, damages, and greater transparency in promotional practices.

As these lawsuits progress, they underscore the broader scrutiny of gambling operators and their marketing practices in the U.S., with regulators and legal advocates pushing for greater ability.

Source:

”More class action lawsuits filed against DraftKings over ad practices”, SBC Americas. January 09, 2025.