DraftKings class action survives dismissal motion

DraftKings class action lawsuit overview:

• Who: A New Jersey judge ruled a DraftKings class action lawsuit can continue.
• Why: The judge ruled the plaintiffs adequately pled unlawful conduct in their risk-free betting claims.
• Where: The DraftKings class action lawsuit was filed in New Jersey federal court.

A DraftKings class action lawsuit alleging the company misled consumers with its “risk-free” ads can continue, a New Jersey federal judge has ruled.

U.S. District Judge Stanley R. Chesler ruled the plaintiffs adequately pled unlawful conduct in their DraftKings class action lawsuit, Law360 reports.

The judge rejected DraftKings’ argument that the full terms of its risk-free and no-risk betting promotions were available somewhere, meaning the ads were not deceptive.

“Concealing the terms of a promotion under a bold heading and having fine print terms, which are unascertainable or too small to realistically read, may constitute illegal and deceptive conduct, even if the terms were at some point fully provided and clearly spelled out,” Judge Chesler said.

DraftKings class action lawsuit alleges deceptive advertising

Plaintiffs Matthew Youngs and Charles Thompson filed the DraftKings class action lawsuit in January, alleging the company violated New Jersey’s Consumer Fraud Act by advertising risk-free and no-risk betting promotions without adequately disclosing the terms of the promotions.

DraftKings unsuccessfully argued the claims are preempted by the state’s casino industry regulations.

The judge also denied DraftKings’ motion to dismiss the class action lawsuit on the grounds that Youngs and Thompson are New Jersey residents and suffered harm only in the state, making a national class designation inappropriate.

DraftKings was granted dismissal of the bettors’ request for injunctive relief related to the allegedly deceptive promotions as well as their claims targeting the company’s “no-sweat” promotion and its “new customer” bonus offer. Youngs and Thompson acknowledged they never participated in either promotion.

The judge also dismissed a state consumer fraud claim tied to the casino deposit promotion but allowed the equitable fraud claim to proceed, ruling that the casino deposit offer constituted “circumstantial evidence of intent.”

DraftKings is currently facing multiple lawsuits, including accusations that it “preys” on gambling addicts with misleading marketing.

What do you think about the DraftKings class action lawsuit allegations? Join the discussion in the comments.

The plaintiffs are represented by Michael Kanovitz and Isaac Green of Loevy & Loevy and Elvin Esteves of the Law Office of Elvin Esteves LLC.

The DraftKings class action lawsuit is Youngs v. DraftKings, et al., Case No. 2:25-cv-00179, in the U.S. District Court for the District of New Jersey.

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