Lawsuit filed against DraftKings over claims of deceptive marketing tactics

Date: December 11, 2023, 06:20h. 

Last updated on: December 11, 2023, 06:20h.

DraftKings, a sportsbook based in Boston, is facing a proposed class-action lawsuit due to claims that the company uses deceptive marketing tactics. Among the allegations is that DraftKings misleads customers through its marketing offers.

DraftKings lawsuit Massachusetts sports betting
A DraftKings advertisement featuring former Boston Bruin star Zdeno Chara is seen outside Fenway Park in Boston on March 10, 2023. DraftKings is being sued in Massachusetts on allegations of deceptive marketing. (Image: AP)

The lawsuit alleges that DraftKings uses its advertising programs to deceive consumers into signing up. Particularly, the focus is on a recent signup promotion in Massachusetts, where new bettors are promised a “$1,000 Bonus” upon registering their online wagering account. However, the terms and conditions of this offer is under scrutiny, with the lawsuit claiming that the bonus is only received after the customer deposits $5,000 and wagers $25,000 within 90 days, with additional requirements on the type of bets that can be placed.

The lawsuit argues that the promotion is unfairly presented to new bettors by the company, given that gambling products carry considerable addictive and dependency risks. As such, it alleges that DraftKings’ marketing tactics must change in order to minimize the potential addiction risk to consumers.

So far, DraftKings has rejected the claims made by the lawsuit, stating that the lawsuit is without merit and plans to vigorously defend itself.

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