Lawsuit Claims Bettors Were Swindled
The legal challenge focuses on DraftKings’ $1,000 Deposit Bonus, available to all new players. While the offer is advertised as a $1,000 deposit match, the operator only does so for 20% of the original amount. That means a bettor must deposit $5,000 to receive the entire bonus.
In addition to the wording around the deposit match, the lawsuit also states that DraftKings did not clarify that the bonus would be in the form of Bonus Bets. Those bets cannot be withdrawn for cash and must be wagered before expiring.
“The very sort of gambling this promotion requires of new customers ... is not, by any definition, responsible play,” Harry Levant, the PHAI gambling policy director Harry Levant said after the motion failed. “Instead, it’s a recipe for addiction. Yet DraftKings hypocritically extorts its customers to ‘gamble responsibly’ in every advertisement. I don’t believe that’s what DraftKings actually wants.”
MGC Has Tumultuous Relationship with Bookmakers
The Massachusetts Gaming Commission (MGC), which regulates sports betting in the state, has a long history of battles with operators. One of the most prominent issues between the two sides is how operators advertise. The regulator has penalized several online sportsbooks over the issue, including Barstool Sportsbook, which chose to exit the US market amid a dispute.
While the lawsuit does not directly involve the MGC, that does not mean they will remain on the sidelines. Depending on how the lawsuit plays out, the regulator could pursue its recourse against DraftKings and its controversial welcome offer.
DraftKings Continues to Take Losses
While DraftKings remains an industry giant, this ruling represents another public embarrassment at the worst time for the operator.
The sportsbook recently announced it would add a surcharge to betting winnings in four markets to offset rising tax rates. However, a large public uproar led to the cancellation of the plan just days later.