DraftKings hit by three lawsuits over misleading promotions

DraftKings is facing three class-action lawsuits over its past “risk-free” bet promotions.

A lawsuit was filed on January 7 in the US District Court for New Jersey against DraftKings, which has been accused of deception against its customers through harmful promotions.

According to the plaintiff Matthew Youngs, a resident of New Jersey, such procedures cause the users to suffer great financial losses and encourage gambling addiction development. He has filed this lawsuit on behalf of all other people who have incurred similar damages. This case is in the same line with the two other lawsuits that were filed on the same date in Illinois and Kentucky, also against marketing practices of the company.

The lawsuit points out promotions like “No Sweat First Bets” and “Casino Deposit Match Promotions”, claiming they mislead users by offering false promises. These campaigns, as the plaintiff argues, make betting seem safe and rewarding but include hidden rules not shared upfront, such as the so-called “risk-free” bets only refund users with “Bonus Bets” instead of cash. These bonus bets can only be used for more gambling and often expire before users can turn them into actual winnings.