Courtney Jorstad  |  February 18, 2015

Category: Consumer News

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DraftKings-LogoThe fantasy sports company DraftKings was hit with a class action lawsuit in a Florida federal court, alleging that it has deceived its customers through advertisements about the double bonus program it says it offers in this legal form of betting.

Plaintiff Jose Aguirre alleges in his class action lawsuit filed Jan. 28 that DraftKings manipulates customers into participating in fantasy sports through “seductive advertising,” which can be seen during commercials, which air during live televised sports games as well as on the internet.

“As part of this advertising scheme, DraftKings entices fantasy sports player with promotions intended to make individuals believe that up to $600 of their initial deposits will be immediately matched by the site,” the DraftKings class action lawsuit claims.

Aguirre cites a DraftKings video advertisement on the internet which features someone explaining why DraftKings is superior to FanDuel.com and other similar fantasy sports websites.

“You’re going to double your first deposit, up to $600! That means that if you put in $100, you get $200 to play with. Put in $300, and get $600. Put in $600, and get $1,200,” the DraftKings representative tells viewers. “No other site can offer you this.”

However, Aguirre alleges in his DraftKings class action lawsuit that this isn’t exactly how it works.

After going through the registration process, Aguirre discovered that $100 does not become $200 upon deposit,” he claims in his fantasy sports class action lawsuit.

“Indeed, customers receive no money upon depositing. They discover, instead that they must incur an additional and substantial monetary obligation in order to ‘double’ their deposit,” the DraftKings class action lawsuit alleges.

“Specifically, customers must enter fantasy contests and receive bonuses in incredibly small increments. Rather than the guaranteed, instant, 100 percent deposit match, customers receive as a bonus a mere four percent of every dollar they put into play,” according to the class action lawsuit.

Aguirre says that he put in $25, but that instead of receiving an additional $25 bonus, he only received $1. In order to receive the $25 bonus, Aguirre says he would have to put in $600 more and then bet all $625 in fantasy sports games “in order to receive the $25 ‘double deposit’ bonus.”

According to the DraftKings class action lawsuit, “a class member who has deposited $600 would actually have to deposit $14,400 more then gamble with all $15,000, in order to get the ‘guaranteed’ $600 bonus and thus have the promised $1,200 with which to wager.”

Aguirre is charging DraftKings with two counts of Florida Deceptive and Unfair Trade Practices Act violations and fraud in the inducement.

He is looking to represent a class of Florida residents “who deposited money into a DraftKings account based upon DraftKings’ advertisement of the deposit match bonus” program.

Aguirre contends in his DraftKings class action lawsuit that the class could include any where from 20,000 to 100,000 class members. He is asking that class members be reimbursed for the money spent as a result of the deceptive advertising, which will vary from $1 to $600.

The plaintiff is represented by Mason Kerns and Jerrod M. Paul of the Law Office of Mason Kerns.

The DraftKings False Advertising Class Action Lawsuit is Jose Aguirre v. DraftKings, Inc. Case No. 1:15-cv-20353-DPG, filed in the U.S. District Court in the Southern District of Florida, Miami Division.

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6 thoughts onDraftKings Deceives Customers With Double Bonus Ploy, Class Action Says

  1. Ron M. Goldstein says:

    Please add me

  2. barry says:

    where is the claim form

  3. barry maez says:

    in october of 2014,i deposited,500.00, expecting,a 500.00 bonus,it,s scam.they only release 5 dollars at a time,totally,deceptive business practices,in january of 2015,for some reason all my bonus money was taken,from my account,when i contacted draftkings,they replyed,if you don,t use the bonus,within,the year purchased,i lose it..it doesn,t say this anywhere.more deceptive practices,and out right lie,s.how can, [layers use the bonuses,if draftkings,only releaseing 5 dollars at a time,if you spend more money,you get $5,at a time,so it really isn,t a bonus,you can use.right away,false advertizing,deceptive business practices,fraud,and outright,theft of players bonuses..

    1. barry maez says:

      where does someone file a claim?

      1. barry says:

        Hello,ANYBODY…

  4. jlc740 says:

    I got duped as well by the Draft Kings Deposit Bonus! I was under the impression, due to the advertisements, I would receive $25 when I deposited $25. What a joke! Thus far, I have spent $13 and have received zero, nada, nothing. I will have to spend another $13, just to get $1. I would love to join a Class Action Lawsuit, but, I am in Ohio.

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