DraftKings “Free Bonuses” Class Action Lawsuit

This class action alleges that DraftKings, which hosts online fantasy sports contests, promises “free bonuses” that are not only not free but are virtually impossible to obtain. In addition, the complaint alleges that DraftKings’ terms and conditions provides little or no chance for refund or redress.

The class for this class action includes all persons in the US who became DraftKings’ “Authorized Account Holders” after DraftKings began offering a “deposit bonus” or other promotion advertising a doubling of deposits. The class excludes citizens of Arizona, Iowa, Montana, Lousiana, and Washington.

DraftKings hosts online fantasy sports contests. Players pay fees to enter the contests, in which they assemble “teams” of athletes and pit them against each other in the hope of winning money. According to the complaint, DraftKings bought more than $23 million worth of television ads in the first week of the NFL season. The complaint alleges that in its effort to recruit new players, DraftKings falsely promises that it will match new Players’ initial account deposits up to$600.

The complaint says that, to begin entering contests, players must set up an account and deposit funds. According to the complaint, DraftKings’ website promises that Players who sign up “today” will receive an exclusive, limited-time 100% deposit match. For example, it says, DraftKings represents that when a new Player deposits $600, an additional $600 “will already be available to you.”

However, the complaint alleges, the only way to get the “free” bonus is to pay thousands more in entry fees to play contests. Also, the complaint claims, players earn points through a process by which points are converted into dollars at rates ranging from 2-4% of the fees paid. According to the complaint, a player who deposited $600 would have to pay at least $15,000 in entry fees to obtain the promised “free” bonus. In addition, the complaint says, the player would have to spend that $15,000—25 times the initial deposit of $600—within four months, a nearly impossible hurdle. The complaint alleges that DraftKings does not make this clear up front.

Thus, the complaint claims, the promise that the bonus deposit match will “already be available to you” is not true.

In fact, according to the complaint, a small group of elite players use sophisticated statistical modeling and computer algorithms to win the bulk of the prize money in each season. A study in the Sport Business Journal found that at least 85 percent of the players lost money.

In addition, the complaint alleges, DraftKings’ terms and conditions offer little or no means of gaining a refund or any kind of redress. According to the complaint, DraftKings disclaims any liability for any wrongs it may commit. In fact, it claims that DraftKings limits its liability to for all damages to $100 and has a no-refund policy. In addition, the complaint says, DraftKings requires players to arbitrate “any and all disputes” (except those filed in small claims court) in Suffolk County, Massachusetts.

Article Type: Lawsuit
Topic: Consumer
Tags: Deceptive Advertising, Deceptive Discount Offers, Unfair Services