The lawsuit, filed in the Eastern Pennsylvania District Court, takes issue with the $1000 casino deposit bonus offered by DraftKings.
The complaint states, “DraftKings attracts new users and keeps existing users coming back by advertising an all-upside gambling experience, falsely promising users that they will get free money which they can wager without any risk.
“In reality, DraftKings has created an all-upside opportunity only for itself: the hidden terms of its promotions require users to deposit and gamble almost exclusively with their own money, which they almost always lose.”
Initially filed by five individuals, the lawsuit is seeking others to join to make a stronger case against the betting company.
One of the individuals said he requested that DraftKings close his account in 2020, but this did not happen until 2024. In the time between, he racked up $350,000 in gambling losses. He still had $45,000 in his account when it was closed, but claims this money has not been returned to him.
Another of the plaintiffs reports losses of tens of thousands of dollars. He had placed himself on the self-exclusion list, but was still able to sign up to DraftKings through their app.
Casino deposit bonus misleading
The suit alleges that the playthrough terms of the bonus make it virtually impossible to match. The suit highlights a 2023 promotion that offered a $2000 casino deposit bonus. There was a requirement that players must play through the bonus in seven days, but this constraint was too demanding.
In games such as blackjack, stakes only count for 20% of the requirement. The players calculated, “This means that, assuming a hand of blackjack takes ~1 minute, a user betting $50 every hand would have to spend more than 66 hours in a seven-day period playing blackjack to satisfy the playthrough requirement. That amounts to almost ten hours of blackjack a day, without stopping to eat or go to the bathroom.”
The plaintiffs also claim that opting out of the bonus can often lead to the player’s initial deposit being lost. It shows the need for players to carefully check the terms of bonuses and promotions before making deposits.
The suit was filed by Chicago-based civil rights firm, Loevy & Loevy, which secured a $120m win against the city police department last month.
Other cases against DraftKings
Several others have also filed lawsuits against DraftKings across the US. The company faces similar lawsuits in Kentucky, Illinois, New Jersey, New York, and Massachusetts.
DraftKings motioned to dismiss the case in Massachusetts, but this was denied. The state prohibits the terms risk-free bets, and recently investigated an ESPN host over comments claiming a wager was a “risk-free investment.”
Additionally, the city of Baltimore filed a lawsuit against the popular sportsbook earlier this month. All of the cases are ongoing.
Other companies have faced similar backlash to casino deposit bonus requirements and other promotions. BetMGM offered one customer $12,000 compensation when he complained that their free bet offer violated Virginia state laws. The customer was a lawyer, however, and refused the compensation, which came with a confidentiality condition.
DraftKings previously had to pay $500,000 in fines for promoting risk-free bets in violation of Ohio state law. Part of the fine also related to sending promotional material to underage individuals.
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