DraftKings Faces New Deceptive Marketing Class Action Lawsuit

Earlier in the week, we reported on DraftKings’ latest court victory in a proposed class action claiming the operator had used a deceptive $1,000 sign-up bonus offer to lure in new customers. 

Now, the Boston-based gambling giant is facing a new federal lawsuit accusing it of making use of misleading marketing to draw customers into excessive gambling.

Breach of Consumer Protection Regulations

Filed in Pennsylvania, the new complaint claims the company and its affiliates violated consumer protection laws by running a series of ads that pushed players toward “habit-forming” gambling behavior.

At the core of the lawsuit, according to the BOSTON GLOBE’s Joey Flechas, are the promotional offers that DraftKings uses to attract new users to its online casino and sportsbook platforms. 

According to the complaint, the company promised to match customers’ deposits, but failed to clearly state that users would need to first wager tens of thousands of dollars within a short time in order to get access to the matching funds.

The suit also targets common phrases used in gambling ads like “risk-free bet” and “no-sweat first bet.” 

While those terms suggest safety or minimal downside, the lawsuit argues the reality is far different. In many cases, players had to place real-money wagers, and the so-called “bonus” was casino credit, not withdrawable cash. 

The legal filing alleges that many of the operator’s offers either lacked clear disclosures or buried key terms in fine print that were hard to find and difficult to understand. 

These tactics, the plaintiffs claim, misled users about the true cost and risk of participation.

Potential Class-Action Case 

Five people are named as plaintiffs in the case, which is seeking class-action status. They say they lost thousands of dollars after getting swept up in what they believed were safe, promotional opportunities. 

According to the lawsuit, two of the individuals each lost more than $50,000 in just a few months after signing up for accounts with DraftKings or its Pennsylvania-based subsidiary, lured by flashy ads and promises of easy rewards, only to end up in repeat cycles of heavy betting and financial loss. 

Some even developed gambling addictions along the way.

DraftKings, which was also recently slapped with a $450,000 fine by the Massachusetts Gaming Commission for illegally accepting credit card funds, has yet to comment on the new Pennsylvania filing.

While these types of lawsuits are inevitable for successful operators, DraftKings has proven it has what it takes to correct its wrongdoings while staying focused on responsible growth and ruling over competitors.

Its latest X campaign, which has already gathered more than one million views along with thousands of comments without even mentioning a prize, is solid proof of DraftKings’ marketing skills.