Class-action lawsuit hit DraftKings Inc. It accuses the sports betting website of misleading new users into believing their first bet could be risk free.
Advertisements promised DraftKings customers a credited free bet if they lost their risk-free bet. However, according to a lawsuit filed in New York federal court, DraftKings paid winning customers less than half of what they would have made with cash.
According to the complaint, the difference renders the supposed risk-free promotion anything but risk free.
A representative for DraftKings didn’t immediately gave response to a request for comment.
Samantha Guery filed the complaint. DraftKings allegedly created the promotion to win over new or unsophisticated gamblers most likely to lose money. Guery claimed that the promise of a risk-free bet was especially appealing to newcomers who might naturally resist gambling.
According to the complaint, after DraftKings lured users into opening accounts based on the promise of risk-free bets, many new users discovered their money was indeed at risk.
The complaint also claimed that DraftKings didn’t tell customers that the risk-free bet would actually become a far less valuable free bet. This notes that several state regulators have cracked down on the use of misleading language by sportsbooks.
Guery is seeking unspecified damages on behalf of other DraftKings users who lost their risk-free bets in New York.
