Two Bettors Sue DraftKings Over Bait-And-Switch Bonus Ad

DraftKings, the leading U.S. gambling company, is facing a class-action lawsuit over its allegedly misleading sign-up bonus.

Two Massachusetts gamblers, backed by lawyers from the Public Health Advocacy Institute, are suing the bookmaker for duping new customers with its bonus ads. DraftKings offers new customers a $1000 free bet when they deposit $5000 within 90 days of signing up. But the catch, which the lawsuit says was buried in the fine print, is that they also have to bet another $25,000 to get the full bonus amount.

The plaintiffs say that the bonus ads make potential customers think that they only need to deposit money to get the whole bonus.

The lawsuit states, “DraftKings knew, or should have known, that its advertisement and promotion was deceptive to their target customers, who were new to sports betting and were extremely unlikely to understand the gambling lingo in the fine print”.

The lawyers also noted that, under Massachusetts state laws, gambling operators are required to take steps to protect consumers from the dangers of problem gambling. According to the director of the Public Health Advocacy Institute, thousands of state residents were tricked and would not have joined the bonus offer if they had known all the terms.

The lawsuit does not reveal what the plaintiffs are seeking from DraftKings.