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Read Full BioDraftKings, the sports betting operator, is facing more legal action in the US. A group of Pennsylvania-based plaintiffs is challenging the transparency of its “risk-free” betting promos.
The Chicago-based legal firm Loevy & Loevy filed the case at the District Court of Pennsylvania’s Eastern District on April 18. The firm wrote that it was filed on behalf of five plaintiffs.
DraftKings Pennsylvania Lawsuit Comes After Baltimore Complaint
The lawsuit seeks class action status. This means that not only the five plaintiffs but also any other individuals who share similar grievances could claim restitution and financial damages.
The lawyers allege that DraftKings is earning “enormous amounts of revenue by misleading and addicting its users” with a business model that involves pushing the boundaries of the law.
The suit follows a complaint filed in Baltimore City earlier this month. The Baltimore lawsuit accused the operator of deceptive and abusive practices.
The latest document contains several assertions regarding DraftKings’ “risk-free betting” and deposit-match bonus promotions.
The lawyers argue that DraftKings lures new users with large-print offers. These include “risk-free” and deposit-matching deals, including an offering named No Sweat.
However, the lawyers say that the operator “contradicts the large-print offers by inserting difficult to read, legally opaque fine print terms hidden behind hyperlinks that are only available when a user is about to opt-in to the promotions and, thereafter, by enforcing complicated rules that DraftKings knows will be overlooked and misunderstood.”
The lawyers added that these allegedly false promises lure consumers into opening new DraftKings accounts and placing larger and more frequent bets.
The legal team gave the example of a DraftKings app user interface for placing a “No Sweat” bet. They noted that the terms and conditions for the offering were not displayed clearly on the app. The lawyers wrote: “A user need not […] ever see the full terms before opting in to the promotion on the basis of DraftKings’s advertising that led them to believe they could place a bet with no risk.”
The lawyers said the app developers instead included an “easy-to-miss” and “almost imperceptible” hyperlink icon.
Bonus Credit Promos Under the Spotlight
The attorneys also drew attention to DraftKings’ bonus credit offerings. They purport that users found it hard to withdraw these credits. Users also allegedly found that credits had unexpected expiration dates and were subject to deductions.
The attorneys claimed many users have complained about DraftKings to the marketplace trust watchdog Better Business Bureau. Some also made complaints to state gambling regulators.
And the document goes on to assert that DraftKings intentionally targets vulnerable young men. It argues that the DraftKings platform is designed to maximize the likelihood that customers develop gambling habits.
DraftKings has also recently been hit with lawsuits in Massachusetts and Illinois. Earlier this year, the firm posted 2024 revenues of $4.77 billion.
