DraftKings is facing legal action for offering a misleading sign-up bonus in Massachusetts

DraftKings is one of the two most popular sportsbooks in the U.S. along with FanDuel. Recently, DraftKings has found themselves in a class action lawsuit. The industry leader is accused of offering a misleading advertising sign-up bonus of $1,000. DraftKings’ motion to dismiss the case was overruled by a Massachusetts judge. On behalf of the state, Shane Harris and Melissa Scanlon are being represented by the Public Healthy Advocacy Institute. The two individuals claim that DraftKings did not disclose the requirements for this sign-up bonus. According to the lawsuit, customers would need to make an initial deposit of $5,000 and place $25,000 in wagers within 90 days to receive the $1,000 non-withdrawable credit. Those terms were not displayed clearly and DraftKings is going to have to answer for their mistake.

How does DraftKings move forward?

Mark Gottlieb is the executive director at the Public Healthy Advocacy Institute (PHAI). A Massachusetts judge allowing the lawsuit to move forward means PHAI can press DraftKings for information about the signups. They’ll be able to speak to executives who were part of creating the sign-up bonus along with finding out how many individuals were able to get the $1,000 sign-up bonus. PHAI anticipates that being a small number. It would require the average bettor to place at least $276 in wagers for 90 days straight to meet the demands of the misleading sign-up bonus. Gottlieb anticipates that DraftKings could seek a protective order. Sports betting companies continue to fight to keep their sign-up data private. DraftKings could claim concerns over the data’s competitive sensitivity.

The next hearing for this case is on December 10, 2024. PHAI feels they’re in a good place because of their ties to successful litigation in major industries. Richard Daynard is a leader of the PHAI and a distinguished professor of law at Northeastern University. In the 1980s, Daynard helped lead a lawsuit against big tobacco for health risks. PHAi wants DraftKings to be held accountable for the misleading sign-up bonus. Mark Gottlieb and the rest of PHAI will work to make sure justice is served for their clients. Additionally. PHAi is advocating for consumer protection at the federal level through the SAFE Bet Act.