Massachusetts Court Moves Forward with Class Action Against DraftKings Promotion
Background of the DraftKings Promotion Lawsuit
The Massachusetts Superior Court has decided to let a class action lawsuit against DraftKings proceed, despite the company’s efforts to have the case dismissed early. The legal action centers around a promotion offered by DraftKings that many customers viewed as confusing and misleading.
Details of the Controversial Deposit Bonus
The campaign in question was the “$1,000 Deposit Bonus” promotion that DraftKings introduced when it expanded into Massachusetts. This offer was available a few years ago and promised that new users who deposited at least $5,000 and wagered a minimum of $25,000 within 90 days would receive $1,000 in bonus bets. These bonus bets could only be used for betting on the DraftKings platform and could not be withdrawn as cash.
However, many users found the conditions of the promotion to be vague. For example, one plaintiff met the wagering requirement but did not meet the deposit threshold and was thus denied the bonus. Another user fulfilled both requirements but was still ruled ineligible to receive the reward.
As a result, the Public Health Advocacy Institute (PHAI) along with plaintiffs Melissa Scanlon and Sean Harris filed the lawsuit on behalf of consumers who believed the promotion’s terms were not adequately disclosed.
DraftKings’ Attempt to Dismiss the Lawsuit
DraftKings sought to dismiss the case by filing for summary judgment. They submitted visual materials related to the promotion, showing how the terms were displayed to customers. However, they did not present the exact promotional materials seen by the plaintiffs during signup, instead providing versions recreated through test accounts.
The court recognized that multiple versions of the promotional materials existed, as DraftKings had updated them over time, and some evidence submitted consisted of recreated images. Considering these factors, Massachusetts Superior Court Judge Squires-Lee determined that there were enough factual disputes to warrant a trial by jury and thus allowed the lawsuit to continue.
Court’s Recognition and Further Litigation Steps
While the court dismissed some claims—such as accusations of misuse of customer data and requests for injunctive relief—it acknowledged enough merit in the case to proceed.
Plaid Wilk, the attorney representing PHAI, expressed satisfaction that the court rejected the use of recreated promotional materials as definitive evidence. The legal team plans to investigate further into how the promotion was originally presented to consumers.
Mark Gottlieb, executive director of PHAI, commented:
“The jig is up for DraftKings and its highly deceptive marketing play to lure new customers to wager tens of thousands of dollars chasing a bogus bonus.”
As the case moves forward, both parties will need to prepare their evidence, and the discovery phase is expected to be extensive, potentially lasting several months.
