DraftKings challenged by new Pennsylvania class-action lawsuit over ‘risk-free’ promotions
DraftKings has found itself facing yet another federal lawsuit in Pennsylvania, this time challenging the fairness and transparency of its so-called “risk-free” betting promotions.
Filed on April 18 in the US District Court for the Eastern District of Pennsylvania, the lawsuit claims that DraftKings has deliberately used misleading marketing tactics to attract customers, particularly those with gambling problems.
Lawyers from the Chicago-based firm Loevy & Loevy, known for major civil rights victories, are handling the case, describing DraftKings’ promotions as deceptive, unclear, and potentially harmful to vulnerable gamblers.
According to the complaint, DraftKings advertised promotions like “risk-free bets” and deposit-match bonuses but buried critical terms in fine print, requiring players to wager significant sums of their own money.
The plaintiffs argue these promotions mislead consumers who mistakenly believe they won’t lose money.
Instead, customers often find themselves forced into complicated wagering requirements, risking their initial deposits to unlock promotional benefits.
“Countless users have lost money through this confusing scheme,” the attorneys wrote in the filing. “Many have reported it to the Better Business Bureau and state gambling regulators, but despite—or because—its knowledge of how many people are being deceived and inadvertently losing money, DraftKings continues misleading customers.”
For example, the lawsuit describes DraftKings’ “bonus bets” as problematic.
Rather than refunding lost wagers in cash, customers receive bonus credits that can’t be withdrawn, have expiration dates, and return only net winnings minus a roughly 9% house cut.
As the complaint notes, a winning $100 bonus bet pays just about $91, and losing bets leave customers empty-handed.
Similarly, the suit criticizes DraftKings’ “casino deposit match,” claiming it is nearly impossible to fulfill requirements.
Players have seven days to wager both the deposit and bonus amounts multiple times.
Games like blackjack contribute only minimally towards these wagering requirements, often forcing users to gamble vast sums within a short timeframe or risk losing their deposits entirely.
The plaintiffs also claim DraftKings uses extensive data analysis to identify vulnerable individuals, including those who have requested account closures or are on self-exclusion lists, targeting them with tailored promotions to encourage continued wagering.
The lawsuit seeks class-action status, demanding restitution, monetary damages, and stricter consumer protections under federal and Pennsylvania state law.
DraftKings has recently faced similar suits in Massachusetts, Illinois, and other jurisdictions, suggesting a mounting legal challenge against its promotional practices nationwide.
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