DraftKings to Refund $3 Million to Connecticut Customers in Marketing Settlement
DraftKings agreed to refund over $3 million to 7,075 Connecticut customers following a settlement with the Connecticut Department of Consumer Protection (DCP). The agreement resolves allegations that DraftKings’ promotional campaigns between October 19, 2021, and January 4, 2023, violated state gaming laws by misleading consumers about bonus terms.
Addressing Misleading Promotions
The DCP investigation targeted two promotions: “50% Casino Deposit Match” and “Casino Deposit Bonus”, offered during Connecticut’s online gaming launch period.
These campaigns allegedly omitted critical details, such as playthrough requirements, leaving many of the 7,075 affected users unaware of conditions needed to unlock rewards.
“Gaming operators must clearly communicate the terms of any promotion,” said DCP Gaming Division Director Kris Gilman.
The settlement, finalized as an Assurance of Voluntary Compliance, requires DraftKings to refund $3.012 million, averaging $425 per customer, within 60 days, with active account holders receiving direct deposits and others getting checks.
Enhanced Compliance Measures
Beyond refunds, DraftKings committed to several reforms. The company will pay $50,000 to support DCP’s consumer protection programs, provide annual training for Connecticut marketing staff, and submit five years of compliance reports detailing promotional materials and consumer complaints.
Additionally, DraftKings must clearly disclose terms for bonuses labeled “free” or “risk-free” and promote its Casino Education Hub to educate users. These steps address broader industry scrutiny, as seen in a Massachusetts class-action lawsuit over similar bonus issues, which alleges deceptive terms misled users into excessive wagering.
“We are pleased that affected consumers will be made whole,” said DCP Commissioner Bryan T. Cafferelli.
Recommended