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Jerome García December 8, 2023 2 min read
DraftKings Faces Lawsuit in Massachusetts for Misleading Bonus
DraftKings has been hit with a class-action lawsuit over its bonusing offer and the terms and conditions of one specific promotion
The Public Health Advocacy Institute, which is the plaintiff, argues that the $1,000 bonus bet offer is unfair and that it misleads players into thinking that they are receiving $1,000 for free. In fact, the terms are near-impossible to complete, the lawsuit seems to allege.
Addressing the Nature of Bonus Marketing
To obtain the amount, a customer would need to deposit $5,000 and wager $25,000 within 90 days, and the bonus cannot be redeemed or transferred, which makes the terms even harder on players.
Although this is all true on the face of it, DraftKings does not seem to be deviating at all from what is a standard bonusing practice in the United States. The complaint filed by the Public Health Advocacy Institute outlines its objection:
DraftKings knew, or should have known, that its advertisement and promotion was deceptive to their target customers, who were new to sports betting and were extremely unlikely to understand the gambling lingo in the fine print.Public Health Advocacy Institute,
The institute is generally looking to address omissions in the practices that companies that promote addictive products have in their marketing terms. For the most part, the institute has gone after cigarette companies, but as gambling is becoming more prominent, it’s likely to see more of these attempts to ensure that the industry is safe.
DraftKings Did Not Turn Players Into Addicts
Noteworthy, though, the institute is not accusing DraftKings of seeking to turn consumers into addicts, but rather that it should take a more cautious approach to its bonus wording to avoid confusion among players. DraftKings is not doing anything that it hasn’t already been doing in other states, however, the established company offering this bonus in 22 other states.
DraftKings is also a member of the American Gaming Association’s Have A Game Plan, a campaign designed to promote awareness for safe and responsible play and raise awareness among consumers about legitimate gambling products.