DraftKings will pay users in Connecticut a total of $3 million following an investigation by the state’s Department of Consumer Protection (DCP) over bonus offers.
The settlement relates to an online casino bonus offer that DraftKings ran between October 2021 and January 2023. The terms of the bonus required users to play through the bonus multiple times, but this was not clearly stated.
Under Connecticut gaming rules, operators must clearly display the play-through requirements of any offers.
Around 7,000 users will be refunded within 60 business days of the finalization of the settlement. After 180 days, DraftKings must notify the DCP players who have not cashed a check or received payment.
DraftKings Denies Wrongdoing, But Vows To Cooperate
DraftKings denied any wrongdoing, but a company spokesperson said it was willing to cooperate with the DCP.
“DraftKings is committed to operating in compliance with all regulatory requirements,” the spokesperson said. “We value our relationship with the Connecticut Department of Consumer Protection and will continue to work collaboratively with them.”
As part of the settlement, DraftKings has agreed to a number of provisions set out in a document released by the DCP. In addition to clearly displaying play-through requirements, the site must also show any time limit on the bonus, the currency of the bonus, and any other relevant terms.
Also, the betting and gaming platform must not use the terms “free”, “free bet”, “risk free” or similar to describe any promotions that require the user to deposit their own money first.
DraftKings Legal Troubles Over Misleading Promotions
The company has faced similar accusations of misleading customers with its promotions and bonus offers. The city of Baltimore filed a lawsuit against DraftKings and FanDuel over misleading promotions in April.
Baltimore Mayor Brandon Scott commented, “These companies are engaging in shady practices, and the people of our city are literally paying the price,”
“DraftKings and FanDuel have specifically targeted our most vulnerable residents — including those struggling with gambling disorders — and have caused significant harm as a result. This lawsuit is a critical step to hold them accountable and protect all Baltimoreans.”
DraftKings is also facing lawsuits in New York, Pennsylvania, Massachusetts, New Jersey, Illinois, and Kentucky over similar claims that it has misused the terms “free” or “risk-free” in promotions.
California’s declaration that daily fantasy sports (DFS) are illegal has also led to the filing of a lawsuit against the long-time fantasy sports operator.
In a bid to fight back against legal challenges, as well as tax increases in states across the country, DraftKings started its own PAC last month. The company cited the new tax on every bet placed in Illinois as one of the main catalysts to be the first sportsbook to create its own PAC. DraftKings responded to the tax by placing a $0.50 surcharge on Illinois bettors.
The company also introduced a fee on winning bets in Illinois following a tax increase in the state last year, but removed the charge following a backlash from users.
Commenting on the decision to reverse the charge, a spokesperson said, “We always listen to our customers and after hearing their feedback, we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers.”
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
