DraftKings Faces Class-Action Lawsuit Over ‘Risk-Free’ Bets: Not So Risk-Free After All

A class-action lawsuit has been filed against the bookmaker DraftKings and is currently being heard in a U.S. District Court in New York, as reported by Bloomberg. The lawsuit revolves around the terms of the so-called “risk-free bet,” which, as it turns out, isn’t entirely devoid of risk.

According to the terms of the promotion, DraftKings insures the user’s first bet in the event of a loss.

Players, not fully aware of the promotion’s rules, were under the impression that DraftKings would refund 100% of the first bet if it lost. However, in reality, the company refunds less than half of the bet amount.

Clearly, there’s a certain risk of losing money, and ideally, the bookmaker should have highlighted this nuance not just in the fine print of the promotion’s rules but directly in the name of the promotional bet. At least, that’s what the players believe, feeling that they were misled by the terms.

The exact number of players joining the lawsuit is unknown, as is the amount of damage incurred. More information on this case may surface later. As of now, representatives of DraftKings have yet to comment on the lawsuit.