Massachusetts Court Allows Case Against DraftKings Promotion to Proceed

The Massachusetts Superior Court has allowed a class action lawsuit against DraftKings to proceed, despite the operator’s attempt to invoke summary judgement. The lawsuit relates to a promotion, which many customers found to be misleading and unclear.

The Deposit Bonus Offer Was Misleading, Customers Say

The promotion in question was the “$1,000 Deposit Bonus” DraftKings launched upon its entry in Massachusetts. It ran a few years ago and promised that new players who had deposited at least $5,000 and wagered at least $25,000 within a 90-day period could receive $1,000 in bonus bets. The reward could not be withdrawn and could only be used for wagers on DraftKings’ platform.

As it turned out, many consumers found the terms of this promotion not entirely clear. One plaintiff wagered $25,000 within the said time frame, but had not deposited $5,000 and could not receive the prize. Another player fulfilled both the deposit and wagering conditions but was deemed ineligible.

The Public Health Advocacy Institute (PHAI)  and plaintiffs Melissa Scanlon and Sean Harris therefore launched a lawsuit on behalf of the customers who felt that the promotion’s conditions were not properly communicated.

DraftKings Wanted to Dismiss the Lawsuit

DraftKings sought to dismiss the lawsuit, demanding summary judgment. To that end, the operator submitted various visual elements related to the promotion and how its terms were displayed. However, it did not provide the exact signage the affected players saw when signing up, but rather versions generated through test accounts.

However, the court understood that there were multiple versions of these visuals, since DraftKings later updated the visuals, and that some of the submitted evidence was based on recreations. As a result, Massachusetts Superior Court Judge Squires-Lee concluded that there were sufficient factual disputes for a jury.

As a result, the judge allowed the lawsuit to proceed.

The Court Acknowledged a Few of DraftKings’ Points

At the same time, the court did acknowledge some of DraftKings’ points. As a result, it rejected a claim suggesting misuse of customer information, as well as a request for injunctive relief.

However, the lawsuit will now be able to proceed. Jacob Wolk, attorney for the PHAI, was pleased by the fact that the ruling rejected the use of reconstructed materials. His team vowed to further examine how the promotion was presented to consumers in the beginning. Mark Gottlieb, executive director of the organization, added:

The jig is up for DraftKings and its highly deceptive marketing play to lure new customers to wager tens of thousands of dollars chasing a bogus bonus.

Mark Gottlieb, exec director, PHAI

As the case proceeds, parties will now have to prepare their evidence. The discovery phase of the lawsuit is likely to be a lengthy process, potentially taking many months.