DraftKings has been hit with another federal lawsuit over its ‘risk-free’ bets promos linked to sports betting in Pennsylvania.
DraftKings has been hit with another federal lawsuit over its ‘risk-free’ bets promos in Pennsylvania.
A class action lawsuit filed 18 April in the US District Court for the Eastern District of Pennsylvania accuses DraftKings of deploying misleading online gambling promotions and actively targeting problem gamblers to drive revenue.
The attorneys argue DraftKings lured consumers with “Risk-Free” and deposit-match offers that, in practice, force users to wager, and often lose, their own funds under opaque, punitive terms.
The federal lawsuit is just the latest the company has faced for the promos, following three filed at the beginning of the year, on top of a high-profile action from a famous ‘Big Tobacco’ litigator last summer.
This particular suit is being litigated by a Chicago-based civil rights firm called Loevy & Loevy, which secured a $120m win against the city police department last month.
Attorneys wrote in the filing: “Countless users have lost money through this confusing scheme. Many have reported it to the Better Business Bureau and state gambling regulators, but despite—or because—its knowledge of how many people are being deceived and inadvertently losing money, DraftKings continues misleading customers.”
The complaint said under the risk-free bet promotion, users must deposit and stake their own money, which is argued was “deceptive and unfair”.
Complaint: DraftKings promos’ deceptive’
Lost wagers, attorneys highlighted, are not refunded as cash but credited as “bonus bets,” which expire, cannot be withdrawn, and pay out only net winnings after a roughly 9% vig.
This means, the filing said, a $100 bonus bet win returns about $91, not the original stake. Meanwhile, if the bonus bet loses or is unused, customers walk away with nothing.
Likewise, the lawyers said the “casino deposit match” promotion promises to match deposits up to $2,000 but requires users to wager both deposit and bonus amounts 10–15 times within seven days.
The complaint said different games count unevenly; for example, blackjack contributes just 20% toward play-through, meaning a user would have to bet hundreds of thousands of dollars in a single week to satisfy the requirement.
Fine-print clauses then stipulate that failing to complete play-through, or choosing to “forfeit” the bonus, results in forfeiture of both bonus and original deposit, often leaving users with zero balance despite having earned winnings, the attorneys added.
The complaint further alleges DraftKings mines extensive user data to identify high-risk and problem gamblers, including those on self-exclusion lists or who have requested account closures, and assigns them VIP hosts who deploy targeted marketing and personalised promotions to keep them wagering.
The plaintiffs are seeking class certification, restitution, injunctive relief, and damages under federal and Pennsylvania consumer protection laws.