(Photo credit: SergeyNivens/DepositPhotos.com)
DraftKings has agreed to pay $8 million to settle a number of class action lawsuit claims, including that the company didn’t adequately represent how difficult its daily fantasy sports contests are to win.
Plaintiffs made a number of allegations, including that the DraftKings and FanDuel terms and conditions weren’t clear enough for average users, that the companies unfairly tricked consumers into participating in one-sided contest designed to allow only a few elite players to win, and that the companies were engaged in illegal gambling.
The claims were centralized in Massachusetts federal court in early 2016.
Anyone in the United States who made a first-time deposit into their DraftKings Daily Fantasy Sports account before Jan. 1, 2018, and who are not net lifetime winners on DraftKings as determined by DraftKings’ business records not later than 48 hours prior to the Agreement Execution Date is considered a Class Member, according to the settlement agreement.
(Photo credit: REDPIXEL/DepositPhotos.com)The settlement will be divided into two funds, Casino.org reported.
The first fund will go to Class Members in the form of DK Dollars — credits on the DraftKings website.
The second fund will consist of $720,000 to be paid in cash to Class Members with closed DraftKings accounts.
Class Members will be broken down into eight levels based on the amount of their first deposit into their DraftKings account.
The maximum amount available to each Class Member will equal the highest amount of that first deposit multiplied by 1.75. As an example, the settlement funds available to any Class Member at the highest level of initial deposits will be $1,050 cash or DK Dollars.
In addition to the monetary relief, under the terms of the settlement agreement, DraftKings will take several measure regarding its daily fantasy sports content, including limiting each authorized player to one active and continuously used account, enabling authorized players to exclude themselves from contests, and enabling authorized players to set limits on the amount of funds they can deposit, among other things.
DraftKings admits no wrongdoing but has agreed to the settlement in order to end the litigation, Casino.org reported.
The class action lawsuits involve over 3 million people, Casino.org reported, with the FanDuel claims still pending.
Are you a DraftKings accountholder? What do you think of the settlement? Let us know in the comment section below.
The DraftKings Multidistrict Litigation is In re: Daily Fantasy Sports Litigation, Case No. 1:16-md-02677, in the U.S. District Court for the District of Massachusetts.
Read About More Class Action Lawsuits & Class Action Settlements:
23 thoughts onDraftKings to Pay $8M to End Multiple Class Action Lawsuit Claims
I’m in Nj I’ve had multiple issues with draftkings most of it’s documented there’s too much to put here but who do I contact about taking legal action?
I haven’t heard or seen anything. My account with draftkings has been closed for 6 months. Thanks
I haven’t received anything from them yet either. Nothing in my DraftKings account, and no update from Keller Lenkner since December. I just sent them an email for an update, and I’ll post again when I get a response.
This is the response I received:
Thank you for reaching out. We are anticipating an update from DraftKings regarding your payment dispersal in the next 2-3 weeks. Please keep an eye on your email inbox, as we will be emailing you that update as soon as it is received.
Best,
I received mine, but they just removed the funds today saying they “expired”
On December 22, 2021 I reached out to DraftKings support team about the issue I had when I tried to make a withdraw from my DraftKings account and deposit the money into my banking account. DraftKings customer service told me to send them a screenshot of any errors that prompt on my screen. I sent the screenshot. Then, they sent an email telling me to confirm if I’m trying to complete a deposit or a withdrawal. After I confirmed the transactions I tried making, they put a restriction on my withdrawals and deposits, stating that I tried making too many consecutive transactions. I was told to send in a picture of me holding up my ID next to my face. I sent the photo to them with no hesitation. Then, they proceeded on telling me to send in proof of residency and a PDF form of my bank statement. I sent in everything that was asked of me. I’ve been constantly sending them emails, asking them what’s going on and why are they taking so long to verify my identity. They have everything they need and their basically withholding my funds. Now their trying to make me answer questions that doesn’t apply to me. For instance, I only been gambling with them for a few weeks and their insinuating that I have a gambling problem. They sent me a link to responsible gambling, demanding me to answers specific questions trying to make me incriminate myself. It’s been two weeks since they had a restriction on my account. I’m not able to place bets, make withdrawal, or deposits. I am a single mother that’s trying to make ends meet. Now they suspended my account and I’m unable see my account balance. I have screenshots and I’m keeping a clear record of all the emails, my placed bets, and my winnings. All I want them to do is reinstate my account, this way I can cash out and close my account out forever. Can someone please guide me in the right direction?
I did my lawsuit paper work buthave recieved nothing from them? Is anyone else getting back money?
Same , they said I was getting like $240 back in dk credit but I haven’t gotten anything yet eather.
I received an email from Keller Lenkner (Law Firm) asking me to participate in this lawsuit against Fanduel and DraftKings. They asked me to provide account information on my user name and deposit history. This was about two years ago (2019) and I received a settlement of $300 in Fanduel credit & $230 in DraftKings Credit. I refused to accept the Fanduel credit; because the settlement was confusing and I felt like I needed a lawyer to review the terms before I would feel comfortable eSigning it. It talked about legal fees and all sorts of stipulations about the credit. I called Keller Lenkner for more details and they acted like I was trying to renegotiate with them. They basically said, “take it or leave it.” So, I left it. I didn’t accept the Fanduel settlement.
Then I received my DraftKings settlement and again I refused to accept the offer. Except this time, Keller Lenkner started calling, texting and emailing me about the claim and how my time was running out. Now it feels like they want me to accept the settlement really bad. It’s like a salesperson that gets to aggressive that it starts to feel like a trap. I told them that I didn’t understand why this settlement was even an option.
I used the analogy of medical malpractice as my rationale for not accepting the offer.
For example: If I sued a doctor for medical malpractice, why would I want free medical services from the doctor I just sued?
DraftKings lied and cheated their players. So, they’re going to give $236 in credit to go back and play with DraftKings when they were found guilty for cheating their player? Does that even make any sense? I’m never going to play on DraftKings ever again. They could give me a million dollars in credit. You can’t withdraw a credit you have to play with it and every time you with with your credit the money you win can be withdrawn – btw.
Now, I get these emails everyday and I don’t understand why they want me to accept the settlement so bad.
Here’s the email I got today (10/28):
Dear Jonathan,
As you know, we secured you a settlement offer of $236.75 from DraftKings.
Your settlement is an example of our firm’s “solid track record of client wins” against companies that have implemented arbitration agreements as a part of their terms of service. Typically, arbitration agreements make it difficult for consumers like you to recover for your claims against large companies like DraftKings. But, as explained in a recent write-up on our firm:
“In just two years, Keller Lenkner has secured more than $375 million in settlements for more than 100,000 individuals in arbitration matters.”
For your convenience, we have made your DraftKings settlement agreement accessible via DocuSign – a secure eSignature service that you can use on any smart phone, computer, or tablet. Please open the link below to review and sign your DocuSign agreement.
I got an email in late December saying should have site credit by end of January or a new email. Have not received anything since
i got the credit.. they just removed it from my account claiming it “expired”
Please add me I stopped playing on this site a couple years ago
please add me have been member.