DraftKings Faces Another Deceptive Marketing Lawsuit, Odds Long for Plaintiffs
Posted on: July 30, 2025, 08:42h.
Last updated on: July 30, 2025, 08:58h.
- DraftKings is facing a lawsuit in a Pennsylvania federal court
- The plaintiffs allege the company deceived consumers with false ads
- Similar cases have been dismissed
Boston-based DraftKings has been named in yet another proposed class-action lawsuit alleging that the online sportsbook and casino company duped customers into signing up and playing with misleading promotions.
Filed in a Pennsylvania federal court, five plaintiffs allege that they are victims of DraftKings’ marketing ploys that are intended to induce consistent participation. The complaint contends that DraftKings knowingly uses “habit-forming” communications purposely calculated to lead to gambling addiction.
The plaintiffs take specific issue with DraftKings’ ads that claimed “risk-free” and “no-sweat” bets. But, as Casino.org has reported, such promotions and bonuses typically require a bettor to “play through” the bonus bets or funds, meaning they must be bet a certain number of times before they’re eligible for withdrawal.
Two of the plaintiffs claim they lost more than $50K on DraftKings only months after registering their accounts. The litigation alleges that DraftKings knowingly deceived customers in violation of federal and state consumer protection laws.
Case Has Long Odds
DraftKings and its competitors, including FanDuel, BetMGM, Caesars Sportsbook, and Fanatics, have many critics for how they market to consumers, though courts have largely sided with the books in similar cases. Federal and state judges have concluded that the sportsbook and iGaming operators, while perhaps not advertising the specific conditions of signup promotions and retention incentives, readily make available the terms of the inducements.
This week, a federal judge in New York’s Eastern District Court ruled against the plaintiffs in a similar lawsuit that named DraftKings.
A reasonable consumer would not be misled to think that merely signing up for a DraftKings account would entitle them to the full $1,000 deposit bonus when the promotional terms specified that users can receive up to $1,000 in bonus funds,” federal Judge Margo Brodie wrote in her dismissal of the proposed class-action lawsuit.
“Under New York law, a deceptive act is one that is ‘likely to mislead a reasonable consumer acting reasonably under the circumstances,'” Brodie continued. “Plaintiff fails to allege that the promotion could deceive a reasonable consumer because the promotional terms fully disclosed the requirements to be eligible for the full value of the promotion in a conspicuous manner.”
Regulatory Repercussions
Gaming regulators in several states have cracked down on how their sportsbooks and online casino platforms are allowed to advertise. In 2023, Pennsylvania ordered sportsbooks to cease using certain language, including “free bet,” “risk-free bet,” and “free play,” in their marketing materials.
Still, lawsuits continue to originate against the industry that has expanded rapidly since May 2018.
In April, the City of Baltimore brought a deceptive and unfair business practices lawsuit against DraftKings and FanDuel on allegations that the sportsbooks used a “two-pronged scheme to harm Baltimoreans.” The Baltimore complaint contends that the sportsbooks use technology to “identify, target, and exploit” their most vulnerable customers.
“The predatory practices of sports betting sites are a national problem, and the City of Baltimore is taking a lead role in efforts to curtail them. You can bet we will bring the fight,” declared Adam Levitt, an attorney representing Charm City in the matter.
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