DraftKings class action alleges company uses misleading promotions to lure players in

DraftKings promotions class action lawsuit overview: 

• Who: Samantha Guery filed a class action lawsuit against DraftKings Inc. 
• Why: Guery claims DraftKings used misleading promotions such as offering a “risk free” first bet to lure new users into opening accounts. 
• Where: The class action lawsuit was filed in New York federal court.

DraftKings Inc. used misleading promotions to “lure” new users into opening accounts with the sportsbook, a new class action lawsuit alleges. 

Plaintiff Samantha Guery’s class action lawsuit claims DraftKings misled new users into thinking the promotional offers they responded to were “financially more advantageous” than they were. 

“DraftKings knew that new users could potentially be converted to long-term customers, which would be extremely profitable for the sportsbook,” the DraftKings class action lawsuit states. 

Guery wants to represent a class of DraftKings users who wagered in the state of New York and utilized a DraftKings promotion that advertised a “risk free” bet and proceeded to lose the bet. 

Class action says DraftKings ‘risk free’ first bet promotion not as it seems 

Guery argues a DraftKings promotion offering new users a “risk free” first bet if they sign up required the user to place a bet using their own money and did not return their money if the bet was lost. 

Instead, Guery claims DraftKings credited the users’ account with a “Free Bet” that she argues is worth less than its counterpart in U.S. dollars since the credit cannot be withdrawn but instead must be wagered to be converted to cash. 

“The false promise of ‘risk-free’ bets was specifically designed to overcome many new users’ natural resistance to gambling and to grab market share in the newly legal sports betting industry,” the DraftKings class action lawsuit states. 

Guery claims DraftKings is in violation of New York General Business Law. She demands a jury trial and requests declaratory and injunctive relief along with an award of actual and/or compensatory, multiple, punitive and statutory damages for herself and all class members. 

DraftKings agreed to pay $8 million in 2021 to resolve a number of class action lawsuits that were filed against the company, including over claims it failed to adequately represent how difficult it is to win its daily fantasy sports contests. 

Have you made a “risk free” bet on DraftKings in the state of New York? Let us know in the comments.

The plaintiff is represented by Charles D. Moore and Michael R. Reese of Reese LLP, Christopher V. Le and Brian Drockton of Boies Battin, LLP and Rebecca A. Peterson, Joseph C. Bourne and Laura M. Matson of Lockridge Grindal Nauen PLLP. 

The Draftkings promotions class action lawsuit is Guery, et al. v. DraftKings, Inc., Case No. 1:24-cv-02921, in the U.S. District Court for the Southern District of New York.

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