Legal Action Claiming Deceptive Practices by DraftKings Moves Forward
In a recent development, online sports betting platform DraftKings is facing a class action lawsuit led by plaintiffs Shane Harris and Melissa Scanlon. The lawsuit, backed by the Public Health Advocacy Institute (PHAI), stems from claims that DraftKings offered misleading sign-up bonuses.
The lawsuit alleges that DraftKings' promotion contained conditions not clearly communicated to customers. To be eligible for the $1,000 sign-up bonus, players were required to deposit $5,000 and gamble at least $25,000 over 90 days. If players failed to meet these conditions, they could only claim the bonus as a non-refundable credit.
The ongoing lawsuit adds to DraftKings' existing legal woes. The company had previously attempted to dismiss the case, citing three principal arguments. However, Massachusetts Superior Court Judge Debra Squires-Lee did not find DraftKings' arguments against the case sufficiently convincing.
Notably, Northeastern University law professor Richard Daynard supports the class action lawsuit against DraftKings. Daynard, known for his criticism of the online gambling industry, accuses DraftKings of engaging in deceptive promotions to hook customers, comparing this practice to what cigarette companies do to attract clients. He describes online gaming as a "public health disaster."
Daynard's criticism is significant, given his previous involvement in a litigation against the tobacco industry that resulted in a $206 billion settlement in 1998. However, the lawyer who joined the lawsuit against DraftKings and was previously involved in this tobacco industry lawsuit is not explicitly named in the available search results.
The PHAI's class action lawsuit against DraftKings is not being dismissed. This lawsuit is one of several legal challenges facing DraftKings, with one recent lawsuit being dropped by the plaintiff. Nevertheless, the company continues to face ongoing legal scrutiny.
As the case progresses, it will be interesting to see how DraftKings responds and whether this lawsuit will lead to changes in the way online gambling platforms offer sign-up bonuses and communicate their terms to customers.
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