DraftKings secures dismissal of $1,000 bonus deceptive marketing claims
Court finds promotional terms clearly disclosed to consumers.
Key points:
– DraftKings successfully defended against claims that its $1,000 sign-up bonus promotion was misleading
– The court found the terms of the bonus were clearly displayed and explained to users
DraftKings has secured the dismissal of a consumer class action alleging the company engaged in deceptive marketing with its $1,000 sign-up bonus offer.
The claim, brought by Nerye Aminov, asserted that DraftKings misled users into believing they would receive the full $1,000 deposit bonus simply by signing up.
However, US District Judge Margo K. Brodie ruled that the promotion’s terms were disclosed clearly and prominently on the app. Users were informed that the “20% deposit bonus up to $1,000” would be earned through play rather than upon registration.
Aminov, who made an initial $500 deposit in January 2022, brought claims including violations of New York’s General Business Law, intentional misrepresentation, fraudulent inducement and unjust enrichment.
DraftKings argued that the full promotional terms were disclosed before any deposit was made and challenged the plaintiff’s claims on grounds including failure to allege deception, injury and proper jurisdiction.
The court dismissed Aminov’s claims, stating he failed to demonstrate distinct damages for unjust enrichment and had abandoned some claims by not responding to the company’s motion to dismiss.
Good to know: Aminov was represented by Shamis & Gentile PA. DraftKings was represented by Wilmer Cutler Pickering Hale & Dorr LLP and Coblentz Patch Duffy & Bass LLP
Brodie stated: “Close to the top of the deposit screen before selecting the deposit amount, the DraftKings page prominently stated, in bold, that users ‘will receive a 20% deposit bonus up to $1,000! Bonus funds are earned as you play.
“Moreover, a reasonable consumer would not be misled to think that merely signing up for a DraftsKings 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.”
Recently, DraftKings was fined $450,000 by Massachusetts regulators for failing to block credit card-funded wagers for nearly a year.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
