Earlier this week, DraftKings celebrated a court victory regarding a proposed class action suit that accused the gambling operator of using a deceptive $1,000 sign-up bonus offer to attract new customers. However, the celebration was cut short as the Boston-based giant now faces a new federal lawsuit, filed in Pennsylvania, that alleges the corporation employed misleading marketing tactics leading customers into excessive gambling. The lawsuit claims that DraftKings and its affiliates violated consumer protection laws through a series of ads that purportedly steered players towards habit-forming behaviors.
Central to this new complaint are the promotional strategies used by DraftKings to lure users to its online casino and sportsbook platforms. These promotions, according to plaintiffs, promised deposit matches without clearly disclosing that users would need to wager tens of thousands of dollars within a short period to unlock the matching funds.
Central to this new complaint are the promotional strategies used by DraftKings to lure users to its online casino and sportsbook platforms. These promotions, according to plaintiffs, promised deposit matches without clearly disclosing that users would need to wager tens of thousands of dollars within a short period to unlock the matching funds. The lawsuit also critiques commonly used phrases in gambling advertisements like “risk-free bet” and “no-sweat first bet,” suggesting that such terms misleadingly imply minimal risk. In reality, these offers often required real-money wagers, with the so-called bonuses being non-withdrawable casino credits.
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