DraftKings Sued in New York Over Misleading Bonus
A class-action lawsuit has been filed against DraftKings in New York, alleging that the operator’s deposit bonus promotion was misleading and “practically impossible” to fully redeem.
Key Allegations in the DraftKings Lawsuit
The lawsuit says DraftKings didn’t properly inform new customers about the requirements for the $1,000 deposit bonus. The terms were buried in fine print and said to receive the full $1,000 bonus you had to deposit $5,000 in one transaction and then bet $25,000 across all DraftKings products within 90 days.
The suit claims with those requirements the average sports bettor had no chance of getting the full bonus. Despite the complicated terms DraftKings heavily promoted the $1,000 deposit bonus and brought in new customers to the site.
DraftKings is being accused of false advertising. The plaintiff is seeking to be made whole for losses. The goal of the lawsuit is to get money back for customers who were affected by the promotion.
In addition to money, the lawsuit is seeking punitive damages and an injunction to stop DraftKings from doing the alleged false advertising.
DraftKings Layoffs
DraftKings recently laid off 101 employees in New Jersey following the closure of its live dealer studio in Atlantic City. The layoffs were a direct result of the studio’s shutdown.
The studio, which operated 24/7 out of Hard Rock Casino since 2019, offered exclusive DraftKings tables, primarily for blackjack.
The closure was part of DraftKings’ strategic shift toward outsourcing live dealer services after its integration with Golden Nugget Online Gaming (GNOG). After acquiring GNOG, DraftKings decided to outsource its live dealer services to external studios in Atlantic City.
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