DraftKings faces a class action lawsuit filed in Massachusetts. Customers claimed the sportsbook deceived them with marketing schemes. Thus, the Public Health Advocacy Institute filed a lawsuit focused on the recent DraftKings signup promo in the state that claimed to give new players a $1,000 signup bonus.
According to the complaint, customers who deposit $5,000 and gamble $25,000 within 90 days only receive $1,000 in bonus bets. Additionally, according to the small print, the bettor must wager the entire $25,000 on odds of -300 or higher.
Pay per head service reports indicated that the three brick-and-mortar casinos in Massachusetts started accepting legal sports bets on January 31. Also, online sportsbooks were launched on March 10.
Famous lawyer and law professor at Northeastern University Richard Daynard was a co-plaintiff in the DraftKings class action complaint. Daynard contributed to the discovery of proof that Big Tobacco was aware of the high cancer risks associated with their products in the 1980s.
DraftKings Faces a Class Action Lawsuit
Per Daynard, DraftKings knows full well that it runs a product that can lead to dependency and addiction. For that reason, he thinks the purportedly misleading advertising practices should stop.
Claims of “unfair or deceptive practices” and “untrue and misleading advertising” are the basis of the two-count case. In addition to the $1,000 incentive that was promised, the lawsuit is seeking a verdict that would pay actual damages, reasonable costs, lawyers’ fees, and even double or triple damages.
DraftKings claims it sought an alternative dispute resolution process with the PHAI outside of court. The advertising practices of the sports betting business have come under intense criticism. Sportsbooks and bookie software providers in Massachusetts cannot promote signup bonuses or any other kind of promotion as “risk-free” or “free,” according to the state’s gambling authorities.
There are affordable sportsbook marketing strategies bookies can use without deceiving consumers. That way, they would not get into trouble with the law.
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