Skip to content

DraftKings accused of deceiving customers through marketing tactics in a fresh class-action lawsuit

Federal litigation launched in Pennsylvania alleges DraftKings resorted to misleading advertising to steer gamers towards high-risk betting, causing some individuals to lose sums exceeding $50,000 within a few short months.

DraftKings Accused of Deceptive Advertising in fresh Class Action Lawsuit
DraftKings Accused of Deceptive Advertising in fresh Class Action Lawsuit

DraftKings accused of deceiving customers through marketing tactics in a fresh class-action lawsuit

In a new federal lawsuit filed in Pennsylvania, DraftKings is accused of misleading marketing practices and promoting excessive gambling through deceptive ads, particularly targeting their promotional offers. The complaint alleges that DraftKings used ads promising deposit matches without clearly disclosing that users must wager tens of thousands of dollars within a short period to qualify.

The lawsuit argues that phrases like "risk-free bet" and "no-sweat first bet" are misleading, as the "bonus" amounts are casino credits with no cash value, requiring further wagering to cash out. Plaintiffs claim many ads omitted clear disclosures or buried key terms in fine print, which misled customers about the real risks and costs.

Two of the plaintiffs each lost more than $50,000 in a few months, and some developed gambling addictions. The lawsuit seeks class-action status with five named plaintiffs.

This lawsuit comes shortly after a judge dismissed a different class action related to a $1,000 bonus bet promotion on the basis that the plaintiff failed to read the terms, highlighting ongoing legal scrutiny but mixed outcomes in litigation against DraftKings’ marketing tactics.

Separately, while not directly connected to this lawsuit, DraftKings was fined $450,000 by the Massachusetts Gaming Commission over credit card wagering issues and ordered to implement corrective actions.

The implications of this new lawsuit include potential tighter regulatory scrutiny on how gambling operators advertise bonuses and handle consumer protections. A successful suit could lead to changes in marketing transparency and possibly affect how promotions are structured to reduce inducements toward compulsive gambling behavior. It could also spur further class actions or regulatory reforms targeting online sports betting and casino operators broadly.

DraftKings has yet to comment on the new Pennsylvania filing. The latest DraftKings campaign, the X campaign, has gathered over one million views and thousands of comments.

  1. The newest lawsuit against DraftKings suggests that the gaming company may need to adjust its advertising approach for casino-games, sports-betting, and lotteries, owing to the perception of misleading marketing practices that potentially encourage responsible-gambling trends.
  2. The ongoing federal lawsuit in Pennsylvania alleges that DraftKings' casino-and-gambling promotions, including "risk-free bet" and "no-sweat first bet," were marketed deceptively, leading to instances of excessive sportsbook betting and, in some cases, gambling addictions.
  3. As the lawsuit against DraftKings progresses, the gambling industry and regulators may take a closer look at the transparency of bonus offers and the handling of consumer protections to prevent future misleading practices in sportsbook, casino-games, and lotteries.
  4. Despite the legal challenges facing DraftKings, the gaming company's X campaign continues to gain popularity, with over one million views and numerous comments, emphasizing the ongoing appeal of sportsbooks and casino-games among consumers.

Read also: