{"id":165064,"date":"2025-01-29T15:02:38","date_gmt":"2025-01-29T15:02:38","guid":{"rendered":"https:\/\/esportsinsider.com\/?p=165064"},"modified":"2025-01-29T15:02:44","modified_gmt":"2025-01-29T15:02:44","slug":"draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit","status":"publish","type":"post","link":"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit","title":{"rendered":"DraftKings Accused of Misleading Promos, Predatory Practices in NY Lawsuit"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/image-679a3dc093b4c.png\" alt=\"\" class=\"wp-image-165096\" srcset=\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/image-679a3dc093b4c.png 1024w, https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/image-679a3dc093b4c-medium.png 300w, https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/image-679a3dc093b4c-medium_large.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n<div id=\"esi-paragraph-67d9bd4095595\" class=\"esi-paragraph \">\n    \n<p>DraftKings is the target of a class action lawsuit in New York that accuses the sports betting giant of misleading customers with deceitful promotions and practices that put problem gamblers at risk.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd4095bf3\" class=\"esi-paragraph \">\n    \n<p>Filed with the U.S. District Court for the Eastern District of New York, the lawsuit asserts that DraftKings has been \u201cdeceiving New Yorkers\u201d with the objective of \u201cmisleading them\u201d into wagering larger amounts of money on a more regular basis.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd40961c8\" class=\"esi-paragraph \">\n    \n<p><a href=\"https:\/\/www.loevy.com\/wp-content\/uploads\/2025\/01\/DraftKings-NY-Complaint.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Plaintiffs Clara De Leon and Eric W. Mirsberger Jr.<\/a><strong> <\/strong>are claiming that the use of language such as \u201crisk-free bet\u201d or \u201cno sweat bet\u201d in promotions offered to new and existing customers falsely promises new customers that they can receive free money, which can be used to wager without risk.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409677e\" class=\"esi-paragraph \">\n    \n<p>The plaintiffs claim that the practice is likely to increase the amounts that customers will bet by refunding such promotional wagers with bonus bets rather than real cash money.<\/p>\n\n  <\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"577\" src=\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/1x-1-1-large.jpg\" alt=\"\" class=\"wp-image-165101\" srcset=\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/1x-1-1-large.jpg 1024w, https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/1x-1-1-medium.jpg 300w, https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/1x-1-1-medium_large.jpg 768w, https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/1x-1-1.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n<div id=\"esi-paragraph-67d9bd4096e20\" class=\"esi-paragraph \">\n    \n<p>The suit asserts that DraftKings has designed the promotions in question as an incentive to \u201cgambling-naive customers\u201d, and that DraftKings does not clearly communicate the risks of losing money to new customers taking advantage of these \u201cno sweat\u201d promotions.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd40973c2\" class=\"esi-paragraph \">\n    \n<p>In addition, the plaintiffs argue that the application of these \u201crisk-free bet\u201d and \u201cno sweat bet\u201d promotions by DraftKings is designed to promote long-term gambling by new customers, whom they claim are forced to make multiple bets to comply with the terms of the promotions.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409795e\" class=\"esi-paragraph \">\n    \n<p>This is just the latest in a <a href=\"https:\/\/esportsinsider.com\/2023\/05\/risk-free-sportsbook-promotions-face-legal-battles\">long line of legal troubles<\/a> as a result of ambiguous advertising language.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-heading-67d9bd4097f48\" class=\"esi-heading \">\n  \n<h2 class=\"wp-block-heading\" id=\"h-new-york-lawsuit-accuses-draftkings-of-targeting-problem-gamblers\"><span id=\"new_york_lawsuit_accuses_draftkings_of_targeting_problem_gamblers\">New York Lawsuit Accuses DraftKings of Targeting Problem Gamblers<\/span><\/h2>\n\n<\/div>\n\n\n<div id=\"esi-paragraph-67d9bd40984f8\" class=\"esi-paragraph \">\n    \n<p>However, there is also an addition to the claims that the company\u2019s \u201crisk-free bet\u201d and \u201cno sweat bet\u201d promotions are misleading to new customers.<\/p>\n\n  <\/div>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"DraftKings being accused of preying on NJ father who gambled away $1 million of family&#039;s money\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/vwcRUJ5F-nw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n<div id=\"esi-paragraph-67d9bd4098b05\" class=\"esi-paragraph \">\n    \n<p>The lawsuit also asserts that DraftKings takes steps to limit the size and frequency of bets placed by experienced sports bettors and that the company deliberately vulnerable customers with special treatment that can deepen an existing gambling addiction.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409909a\" class=\"esi-paragraph \">\n    \n<p>DraftKings is accused of targeting customers it knows are at-risk gamblers by pairing them with so-called VIP Hosts, whose job is to oversee and cultivate relationships with DraftKings&#8217; most highly engaged customers.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd4099629\" class=\"esi-paragraph \">\n    \n<p>The plaintiffs claim that the DraftKings VIP Hosts actively \u201cmilk them for every dollar they have\u201d using predatory tactics and enticements such as promotions that require more deposits and wagers.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd4099bcd\" class=\"esi-paragraph \">\n    \n<p>\u201cAs expected, some of these targeted people developed debilitating gambling addictions as a result of DraftKings\u2019 carefully orchestrated schemes to draw them in with misrepresentations and then force them to engage in habit-forming behavior to meet the promotional terms as they chase after DraftKings\u2019 illusory promises,\u201d stated the suit.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409a161\" class=\"esi-paragraph \">\n    \n<p>These accusations assert that DraftKings has broken New York laws relating to false advertising, responsible gambling messaging, intention misrepresentation, fraudulent inducement, unjust enrichment and negligence.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409a6e1\" class=\"esi-paragraph \">\n    \n<p>The plaintiffs are seeking injunctive relief and compensatory damages.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-heading-67d9bd409ac98\" class=\"esi-heading \">\n  \n<h2 class=\"wp-block-heading\" id=\"h-draftkings-facing-more-legal-troubles\"><span id=\"draftkings_facing_more_legal_troubles\">DraftKings Facing More Legal Troubles<\/span><\/h2>\n\n<\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409b239\" class=\"esi-paragraph \">\n    \n<p>The New York lawsuit is just the latest in a series of legal troubles that have beset the Boston-based online sportsbook.<\/p>\n\n  <\/div>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Draftkings facing class action lawsuit over sign-on bonus advertising\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/xLhQfINMsRg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n<div id=\"esi-paragraph-67d9bd409b831\" class=\"esi-paragraph \">\n    \n<p>In addition to the latest claims, DraftKings is facing a class-action suit in Massachusetts regarding its promotion of \u201crisk-free\u201d bets.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409bdc5\" class=\"esi-paragraph \">\n    \n<p>This was launched last summer by two state residents, with the help of the Public Health Advocacy Institute. It claims that DraftKings is in violation of state consumer protection laws for the way it presented a $1,000 sign-up bonus.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409c336\" class=\"esi-paragraph \">\n    \n<p>The suit says that in order to maximize the bonus, customers must deposit $5,000 and wager $25,000 over the course of 90 days.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409c8af\" class=\"esi-paragraph \">\n    \n<p>While DraftKings recorded an early victory by successfully having the case relocated from the Massachusetts Superior Court of Middlesex County to the state\u2019s Business Litigation court, a subsequent bid to have the lawsuit dismissed failed in August.<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409cef4\" class=\"esi-paragraph \">\n    \n<p>Judge Debra A. Squires-Lee rejected DraftKings\u2019 arguments that the plaintiffs had not adequately described the injury or loss they experienced from the deposit by stating \u201cThese allegations plausibly suggest that (the plaintiffs) were harmed because they bought into a service worth less than they believed based on the promotion.\u201d<\/p>\n\n  <\/div>\n\n\n<div id=\"esi-paragraph-67d9bd409d471\" class=\"esi-paragraph \">\n    \n<p>DraftKings is fighting lawsuits filed in <strong>Illinois<\/strong>, <strong>Kentucky<\/strong> and <strong>New Jersey<\/strong> that accuse the company of making \u201cfalse promises and misrepresentations\u201d regarding its \u201cno-sweat\u201d promotions.<\/p>\n\n  <\/div>\n\n\n\n\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>DraftKings is the target of a class action lawsuit in New York that accuses the sports betting giant of misleading customers with deceitful promotions and practices that put problem gamblers at risk. Filed with the U.S. District Court for the Eastern District of New York, the lawsuit asserts that DraftKings has been \u201cdeceiving New Yorkers\u201d &hellip; <a href=\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit\">Continued<\/a><\/p>\n","protected":false},"author":185,"featured_media":165095,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"yes","_lmt_disable":"","esi_template":"default","excluded":false,"footnotes":""},"categories":[87],"tags":[],"class_list":["post-165064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.1 (Yoast SEO v24.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DraftKings Accused of Misleading Promos, Predatory Practices in NY Lawsuit<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Accused of Misleading Promos, Predatory Practices in NY Lawsuit\" \/>\n<meta property=\"og:url\" content=\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit\" \/>\n<meta property=\"og:site_name\" content=\"Esports Insider\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-29T15:02:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-29T15:02:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/unnamed-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Brett Curtis\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@esportsinsider\" \/>\n<meta name=\"twitter:site\" content=\"@esportsinsider\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brett Curtis\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit#article\",\"isPartOf\":{\"@id\":\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit\"},\"author\":{\"name\":\"Brett Curtis\",\"@id\":\"https:\/\/esportsinsider.com\/#\/schema\/person\/619ae10e36a20bee931e91eedc9d88f9\"},\"headline\":\"DraftKings Accused of Misleading Promos, Predatory Practices in NY Lawsuit\",\"datePublished\":\"2025-01-29T15:02:38+00:00\",\"dateModified\":\"2025-01-29T15:02:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit\"},\"wordCount\":722,\"publisher\":{\"@id\":\"https:\/\/esportsinsider.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/esportsinsider.com\/2025\/01\/draftkings-accused-of-misleading-promos-predatory-practices-in-ny-lawsuit#primaryimage\"},\"thumbnailUrl\":\"https:\/\/esportsinsider.com\/wp-content\/uploads\/2025\/01\/unnamed-1.jpg\",\"articleSection\":[\"Esports Betting &amp; 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