Caesars Faces Legal Action Over Alleged Predatory Promotion

The Public Health Advocacy Institute (PHAI), a well-known nonprofit that aims to safeguard public health through the use of legal mechanisms, has filed a lawsuit against Caesars Entertainment and Harrah’s Philadelphia Casino, alleging that they employ a misleading  “$2,500 deposit match” promotion that could push customers toward financially dangerous behavior.

Users Reportedly Have No Reasonable Way to Receive the Bonus

This newest legal action, filed in Philadelphia court, alleges that Caesars’ online casino promotion lures in new players by deceptively advertising a generous deposit match bonus that’s effectively impossible to obtain without engaging in extreme, high-stakes gambling. The complaint notes that players who accept the offer must wager $375,000 in just one week to receive the bonus amount.

No money or winnings can be withdrawn unless a total of $375,000 is gambled and risked. All money lost during the first 7-day period is kept by Caesars and Harrah’s Casino.

PHAI statement

PHAI contends that the promotion’s stipulations are buried in fine print and effectively trap players into unsustainable gambling behavior. The lawsuit argues that the promotion violates Pennsylvania’s consumer protection laws, pushing legal and ethical boundaries. It also accuses Caesars of exploiting the murky regulatory landscape in Pennsylvania’s nascent online gaming sector.

Nothing in Pennsylvania’s gambling rules permits a casino to refuse payment unless customers begin gambling to excess. This is dangerous to customers, immoral, and just plain wrong.

Dr. Harry Levant, PHAI director of gambling policy 

PHAI also notes that Caesars’ land-based partner, Harrah’s Philadelphia, is complicit. According to the lawsuit, the casino acts as a licensed anchor to Caesars’ online operation and profits financially from the same customer base. In response to the suit, Caesars has yet to issue a public comment. Harrah’s Philadelphia has also declined to comment.

PHAI Remains Dedicated to Consumer Well-Being

At the heart of the lawsuit is PHAI’s broader mission of holding the gambling industry accountable, as it has done in pursuing legal action against tobacco and junk food giants. According to the group, the suit against Caesars could redefine how online casinos structure promotional offers and invite increased regulatory scrutiny.

This lawsuit is not the first instance where PHAI has targeted gambling operators. In late 2023, the group filed a class action against DraftKings in Massachusetts over similar concerns. That case remains active after a judge allowed it to proceed despite the operator’s attempts at dismissal. 

PHAI continues to utilize the courts to protect clients and the public from unreasonable risks of harm caused by the negligent, careless, and reckless conduct of the gambling industry.

Andrew Rainer, Esq., PHAI director of litigation 

PHAI is also involved in an ongoing legal effort to compel the Massachusetts Gaming Commission to fulfill its legal obligation to collect and share anonymized player behavior data, a requirement the agency has failed to enforce for over 10 years. PHAI argues this newest lawsuit is likewise about more than a single misleading ad and is a symptom of industry-spanning issues.