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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 had two different bets on the Super Bowl and I was watching them go down and live action on TV and Bam I was excited I won this bet and I won the other bet but DraftKings says I lost and it was a couple hundred dollars of payout. Now I’m trying to figure out how to sue them
Earlier this week. I took them for 30k of a 100 dollar live over wager on the all star game I got for over 335. They kept offering me cash outs until I started to try and throw (10k) bets (that would of won) but they sent my bets back, took my 13k already made prior, and then deactivating my account. My lawyer is very excited about the case
I would like to included as well my bets wasn’t as big as the others but that just show you how much they are trying to hold on to sad.
I have won bet today for FIFA World Cup for the bet was who will win fifa World Cup 2022 I bet on Argentina 🇦🇷 and won $9K+ they are sending copy paste excuses. And telling me you have lost the bet 😡 I have screen short of my bet.
I won 450 on the superbowl and they acknowledged that I won but then make it impossible to withdraw I been trying all day
I’m having the same issue I’ve tried 4 times and they cancel my request
Screwed me out of 57k. I didn’t violate any terms or anything. Just won a big bet.
Add me! On January 30, 2022 I won a contest with 1st Place winning $25,000. I have contacted support several times.
I have had my account restricted and them disabled my ability to withdraw and disabled my ability to enter additional contests.
DraftKings is awful and they will not return my calls, they only have automated responses to my emails and support tickets.
DraftKings needs to be exposed!
Ben
I too have been screwed out of my winnings, I want to be included.
FanDuel has put restrictions on my account two or three times saying there was a problem with the email. I’ve paid into FanDuel more than I’ve ever won and as soon as I win something they decide to put a hold on my account. DraftKings just did this to me after the AFC and NFC championship games January 29th 2023. I won close to $300 and ask for a $200 withdrawal and all of a sudden there is a problem with my email again. DraftKings and FanDuel are both con artist and trying to steal as much money as they can from people. M.L.Lewis
please add me
Add me please. Never paid me the 39k I won
I want an investigation into my bets. Who would expect this to happen. I didnt mean to make some bets. I questioned whether something was wrong with the cpu.
DraftKings screws everything up for LEGITIMATE and HONEST companies! How? By screwing customers so that now, courts have to get involved. What happens next? States get involved and regulations on top of regulations start ! All it takes is one IDIOTIC company to make it hard for legitimate companies and customers alike.