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A Michigan man says DraftKings is engaging in a “systemic practice” of refusing to pay out winning wagers to its customers, a new nationwide class action lawsuit alleges.
Plaintiff Ryan Cristman filed the class action lawsuit against DraftKings Inc. in a Michigan federal court Wednesday, alleging the digital gaming company had breached its contract with customers all over the United States by disputing and not paying out winning bets.
Cristman says he opened a DraftKings Sportsbook account in February 2021. On Feb. 10, he says he placed a bet of $915.89 for the Boston Bruins hockey team to win or lose by less than three goals in regular time, with odds of +510 and a potential payout of $5,586.93.
Before the match, he emailed DraftKings to check the odds were correct on his bet, asking, “Is this free money?”
A customer service representative responded via email that the odds were correct, and wished him luck with his wager, according to a screenshot of the conversation included in the class action. A screenshot of the bet was also included.
Before the game ended, Cristman says he contacted support again, noticing his bet was now incorrectly showing a different bet. There was no response, and when he logged in again to collect his money, after the Bruins tied 2-2, his bet was marked as a loss, he says.
Customer support replied that evening, confirming the bet would stand as a loss. It said it had “a display issue with the interface” and apologised, refunding his bet and giving him a $50 credit.
However, when Cristman pointed out his bet was a winning bet, as the Bruins did not lose by more than three goals, he said DraftKings stopped replying and locked his account “in retaliation.” He was then unable to access his funds.
“As a result of defendant’s unilateral and unjustified breach of contract, plaintiff lost the value of his winning bet, was prevented from accessing his account and was unable to place other wagers,” the class action states.
Cristman says DraftKings prides itself on offering a “safe, secure online sports betting platform,” and that prior to its launch in Michigan, DraftKings CEO Jason Robins boasted about the “signature” DraftKings customer service experience coming to the state.
“Unfortunately, the ‘signature DraftKings experience’ offered by Defendant involves the systemic practice of refusing to pay winning wagers to customers who are contractually entitled to them,” the class action states.
Cristman says DraftKings repeatedly failed to honor the winning wagers its customers paid for by incorrectly marking the wagers as losses and, as a result, prevented its customers from receiving the payout they were entitled to.
Cristman is looking to represent anyone in the United States who placed a winning wager through DraftKings’ Sportsbook that DraftKings incorrectly declared as a loss. He’s suing for breach of contract, and seeking certification of the class action, damages, costs, fees, interest, an injunction, and a jury trial.
The class action comes after DraftKings in March 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.
What do you think of the allegations against DraftKings? Let us know your experiences with the service in the comments!
The plaintiff is represented by Henry M. Scharg of Law Office of Henry M. Scharg, and Benjamin H. Richman, Ari Scharg and Michael Ovca of Edelson PC.
The DraftKings Breach of Contract Class Action Lawsuit is Cristman et al., v. DraftKings Inc., Case No. 2:21-cv-11092-SDD-DRG, in the U.S. District Court for the Eastern District of Michigan.
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19 thoughts onDraftKings Is Denying Customers Their Winning Bets, Class Action Alleges
I also didn’t get paid and they absolutely will not call or make it right
How do I get added to this..
I won $1300 on an NFL game.
I’ve contacted them so many times. They disabled my account in January still won’t reply to me.
DraftKings Sportsbook just rob me for 650 I bet 100 that Celtic would win half/full time against the bucks on 03/30/22 and they won but my bet says lost and the pay out was 550
I’m pissed.. they took money out of my account threw a ach transfer twice while i was grocery shopping last night.. now I’m 60 in the hole on top of the system glitching while im in the middle of bonus rounds winning over 150 dollars on Crystal cash and crystal mirrors. lately they have been extremely glitchy during high traffic times and payouts take forever
THIS IS THE THIRD LIVE BET IN A WEEK THAT WAS A WIN BUT THEY MARKED AS A LOSS!! I TOOK LIVE BET CHICAGO BULLS -3.5 AND THEY WON BY 4! A FEW NIGHTS AGO I TOOK REDDISH OVER 2.5 REBOUNDS HE GOT 3 IT WAS D MARKED IT LOSS. THEN BEFORE THAT I TOOK MISSOURI OVER 80.5 POINTS THEY GOT 85. I’ve tried contacting them 7 times NO RESPONSE. Do I call my bank?? I don’t know what to do at this point.