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DraftKings Sportsbook No Payout for Winners Class Action

DraftKings, Inc. offers users a “safe, secure online sports betting platform”—or so the complaint for this class action quotes its website as saying. But the complaint alleges DraftKings has a “systemic practice of refusing to pay winning wagers to customers who are contractually entitled to them.” The complaint alleges breach of contract.

The class is all persons in the US who placed a winning bet on DraftKings’ Sportsbook that DraftKings incorrectly declared a loss.

DraftKings began in 2012 as a fantasy sports site. In 2018, they extended their offerings with Sportsbook, a sports betting platform.

Teams that are favored to win are marked with a minus sign (-). Teams that are underdogs are marked with a plus sign (+). The complaint says, “DraftKings earns revenue through their Sportsbook by calculating the betting markets that have been resolved and subtracting the total payouts from these markets. If the user wins, DraftKings is expected to pay out the bet.”

On February 10, 2021, plaintiff Ryan Cristman placed a puck line bet on a hockey game between the Boston Bruins and the New York Rangers.

A puck line bet involves a goal spread. A a team can be given a positive or a negative number of goals. The complaint refers to the DraftKings website for an example: “[If] Detroit is playing and they are given +1.5 goals at odds of -110, Detroit bettors will win their wager if Detroit wins the game or loses by one goal. In the alternative, if Detroit was given -1.5 goals and odds of -110, Detroit bettors will only win their wager if Detroit wins by more than one goal.”

In Cristman’s bet, “the Boston Bruins were given +3 goals in regular time with odds of +510.” Christman, the complaint says, “wagered $915.89, and if the Bet was successful, stood to receive a payout of $5,586.93.” The complaint shows a smartphone screenshot of his receipt for the bet, showing “BOS Bruins +3.”

Before the game started, he asked DraftKings customer support if the odds were correct. DraftKings customer support wished him luck, saying they were “hoping to see you win.”

Unfortunately, the complaint says, while the game was still going on, Cristman noticed that his bet receipt showed the bet placed as -3 for the Boston Bruins.

The complaint says, “The Game ended regular time with a score of 2-2. Meaning, [Cristman] had won his Bet as Boston did not lose by more than three goals. Cristman went to withdraw his winnings, but found that his bet was marked as a loss.

The DraftKings response was a message that said, in part, “There was a display issue on the event interface, but the terms of the bet are displaying correctly in the bet slip prior to bet placement.” DraftKings refunded his original bet and gave him a $free bet credit, but it did not change it to a win.

Article Type: Lawsuit
Topic: Contract

Most Recent Case Event

DraftKings Sportsbook No Payout for Winners Complaint

May 12, 2021

DraftKings, Inc. offers users a “safe, secure online sports betting platform”—or so the complaint for this class action quotes its website as saying. But the complaint alleges DraftKings has a “systemic practice of refusing to pay winning wagers to customers who are contractually entitled to them.” The complaint alleges breach of contract.

DraftKings Sportsbook No Payout for Winners Complaint

Case Event History

DraftKings Sportsbook No Payout for Winners Complaint

May 12, 2021

DraftKings, Inc. offers users a “safe, secure online sports betting platform”—or so the complaint for this class action quotes its website as saying. But the complaint alleges DraftKings has a “systemic practice of refusing to pay winning wagers to customers who are contractually entitled to them.” The complaint alleges breach of contract.

DraftKings Sportsbook No Payout for Winners Complaint
Tags: Breach of Contract, Failure to Pay Winnings, Gambling or Gambling Games