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DraftKings lawsuit over deposit bonus marketing is dismissed
Federal judge dismissed lawsuit against DraftKings, ruling that the company’s $1,000 deposit bonus promotion wasn’t materially misleading under New York law.
The complaint had been filed by New York resident Nerye Aminov in state court and later dismissed to the US District Court for the Eastern District of New York. In a 23-page memorandum and order issued on July 28, US District Judge Margo K. Brodie granted DraftKings’ motion to dismiss, concluding that the promotional terms were sufficiently disclosed and that the plaintiff’s claims failed to state a plausible legal basis for relief.
The complaint alleged that DraftKings’ “$1,000 Deposit Bonus” required complex conditions which wasn’t evident in its headline messaging. Aminov claimed that he was misled into depositing $500 into a DraftKings account based on the promotion, believing he would receive a larger bonus in return, but was ultimately credited only $100.
Judge Brodie found that Aminov’s claims could not be verified. The court also stressed that the terms of the promotion, with a requirement to deposit $5,000 and bet $25,000 within 90 days to earn the full $1,000 bonus, were fully disclosed on the same screen.
The judge also rejected an argument that a customer must affirmatively agree to the promotional terms or that additional means were necessary to verify consumer understanding. The court pointed out that because the terms were integrated into the deposit process and were viewable prior to transaction completion, full disclosure had been achieved.
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