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Thursday, May 16, 2024

DraftKings faces class action over promotions to new users

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NEW YORK (Legal Newsline) - A gambler unhappy with "risk-free" bets earned for signing up to DraftKings has filed a class action lawsuit.

A class action lawsuit was filed April 17 in New York federal court against DraftKings, Inc. by Samantha Guery. The complaint alleges that DraftKings used misleading promotions to attract new users, specifically its "Risk-Free Bet" offer. 

According to the plaintiff, this promotion was not as financially advantageous to consumers as it was portrayed. If a customer lost their bet, they were not returned to their original position but were instead credited with a "Free Bet" that was worth less than its counterpart in U.S. dollars.

The plaintiff further argues that these marketing representations and omissions violate state consumer protection law. The lawsuit seeks actual damages, punitive damages, and statutory damages to compensate the class for the injury inflicted by DraftKings and to prevent them from continuing to deceive consumers.

Charles Moore of Reese LLP is among many lawyers representing the plaintiff.

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