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It might not be the easiest New York sportsbook bonus to claim, but a federal judge has concluded that the one run by DraftKings is not inherently deceptive in how it works and how it’s marketed.
Chief Judge of the U.S. District Court for the Eastern District of New York, Margo K. Brodie, ruled July 28 that any "reasonable customer” would be able to understand the terms of the DraftKings new customer promo.
The class action suit filed last September by plaintiff Nerye Aminov and others claimed that DraftKings engaged in a “fraudulent and misleading promotion”.
The basis of the action was how DraftKings promotes its “$1,000 Deposit Bonus” and how users can claim it. The judge, however, upheld DraftKings’ motion to dismiss.
The DraftKings promo is a long-standing one and has been running in New York since 2022. Aminov had previously claimed the bonus but argued that they had been misled into depositing $500 and received less than anticipated due to the way DraftKings advertised the promo.
The court held that DraftKings’ promotional material was clear that new customers would receive 20% of their initial deposit, up to a maximum bonus return of $1,000.
In practice, it means that to claim the top amount of $1,000, a new player would need to deposit $5,000. The DraftKings welcome offer does get a little more complicated too in that there’s a 25x play-through requirement. To unlock $1 in bonus funds requires a wager of $25.
The plaintiffs had argued that they had “lost thousands of dollars while developing gambling addictions as they tried to meet the terms of the requirements and chase their losses.” This was not accepted by the court.
It should also be noted that DraftKings has an alternative new customer promo running alongside its deposit match deal. That requires a wager of just $5 to activate $150 in bonus bets which is much simpler to get.
DraftKings returned to the top of the standings in June as the sportsbook with the most bets taken. It pipped rival FanDuel with a handle of $607 million compared to $563.7 million. DraftKings hasn’t been without legal headaches, despite its continued popularity with punters.
Similar lawsuits have been defended by DraftKings in other states in which it promotes its $1,000 deposit match offer. In Massachusetts, a case is ongoing without resolution after a judge set in motion a discovery process seeking further information on the terms of the promo.
DraftKings also returned $3 million to users in Connecticut in a deal with the state’s Department of Consumer Protection.
Whether DraftKings opts to ditch a welcome offer strategy that has proven to be contentious while presenting legal challenges remains to be seen.
The best bet for consumers when registering at any of New York’s legal sportsbooks is to always read the terms and conditions of the new customer promo you’re interested in so that you know just how it works, what’s required, and what you’re getting into.
