DraftKings class action alleges sports betting ads mislead consumers

DraftKings deposit bonus class action lawsuit overview:

• Who: Plaintiff Nerye Aminov filed a class action lawsuit against DraftKings Inc.
• Why: Aminov claims DraftKings misleads consumers about the terms of a deposit bonus offer for its sports betting platform.
• Where: The class action lawsuit was filed in New York state court. The claims are similar to those being investigated against BetMGM and Caesars Palace Online Casino.

A new class action lawsuit accuses DraftKings of misleading consumers about the terms of a deposit bonus offer for its sports betting platform.

Plaintiff Nerye Aminov alleges DraftKings lures consumers to its sports betting platform with a promise of a $1,000 deposit bonus that is “nearly impossible” to obtain. 

Aminov claims DraftKings’ advertisements give the misleading impression that new users will receive the $1,000 bonus automatically upon making an initial deposit.

“In reality, DraftKings’ policy requires users to meet complex conditions to receive the bonus — conditions that are not clearly disclosed in the advertisements,” the DraftKings class action says.

Aminov wants to represent a nationwide class and New York subclass of consumers who opened an account and deposited funds with DraftKings’ sports betting platform in response to the $1,000 deposit bonus promotion or similar promotion and placed monetary bets through the platform and were damaged thereby.

DraftKings deposit bonus is ‘deceptive,’ class action argues

Aminov argues DraftKings’ deposit bonus is structured in such a way that makes it “almost impossible” for new users to qualify.

To receive the full $1,000 bonus, the plaintiff claims new users must deposit at least $5,000 and wager at least $25,000 within 90 days. Even then, Aminov claims users only receive the bonus in small increments over time.

Aminov argues that, as a result of the allegedly misleading advertisements, consumers like him were fraudulently induced to open DraftKings accounts, make initial deposits and place bets. 

“DraftKings’ advertisements fail to inform new users of these requirements, making them deceptive and misleading,” the DraftKings class action says.

Aminov claims DraftKings is guilty of intentional misrepresentation, fraudulent inducement and unjust enrichment and in violation of New York General Business Law. 

The plaintiff demands a jury trial and requests declaratory and injunctive relief and an award of actual and punitive damages for himself and all class members. 

A consumer filed a similar class action lawsuit against DraftKings last year over claims the company used misleading promotions — such as a “risk free” first bet — to lure new users into opening accounts. 

Top Class Actions is also running a class action lawsuit investigation involving online casinos BetMGM and Caesars Palace Online Casino allegedly using misleading advertising to attract new customers to their platforms. 

Did you open a DraftKings account after seeing an offer for a deposit bonus? Let us know in the comments.

The plaintiff is represented by Andrew Shamis and Leanna Loginov of Shamis & Gentile, P.A.; Jeffrey Kaliel and Sophia Goren Gold of KalielGold PLLC; and Adam Schwartzbaum of Edelsberg Law, PA.

The DraftKings deposit bonus class action lawsuit is Aminov, et al. v. DraftKings Inc., Case No. 720194/2024, in the Supreme Court of the State of New York, County of Queens.

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