online-gambling.com

DraftKings Wins Dismissal of Class Action Lawsuit Over $1,000 Bonus

Judges mallet in courtroomDraftKings has successfully dismissed a consumer class action lawsuit that accused the company of deceptive marketing related to its $1,000 sign-up bonus.

Judge Rules Plaintiff Failed to Present a Valid Legal Basis

On July 28, Chief Judge Margo K. Brodie of the US District Court for the Eastern District of New York ruled that plaintiff Nerye Aminov failed to present a valid legal basis for the lawsuit. Judge Brodie concluded that any ‘reasonable’ customer would have understood the terms of DraftKings’ promotion, which were clearly disclosed.

In December, Aminov filed a lawsuit against DraftKings on behalf of himself and others, accusing the online gaming company of intentional misrepresentation, fraudulent inducement, and unjust enrichment through what he described as a ‘fraudulent and misleading promotion.’

The dispute centered on a promotional offer advertising a $1,000 deposit bonus. Aminov claimed the offer was deceptive and said he was misled into depositing $500, expecting a much larger bonus than the $100 he ultimately received.

DraftKings denied the allegations and filed a motion to dismiss, arguing, among other points, that its advertising was not misleading and that Aminov failed to show any financial loss or actual or potential harm resulting from the promotion.

Terms of Promotion Found to Be Clearly Disclosed

Judge Brodie sided with DraftKings, stating in her decision that the promotion’s three requirements were clearly and prominently displayed, not hidden, buried in fine print, or presented in a misleading way.

The terms of the promotion explained that the bonus would equal 20% of the amount deposited, up to a maximum of $1,000. To receive the full $1,000 bonus, a user must deposit $5,000 and wager a total of $25,000 on daily fantasy contests, sportsbook bets with odds of -300 or longer, casino games, or any combination of these options.

“Plaintiff fails to allege that the promotion could deceive a reasonable consumer because the promotional terms fully disclosed the requirements to be eligible for the full value of the promotion in a conspicuous manner.”

-Judge Brodie

She also noted that DraftKings clearly stated near the top of the deposit screen that users “will receive a 20% deposit bonus up to $1,000! Bonus funds are earned as you play.”

“Prior to depositing funds into a DraftKings account, a reasonable consumer would have seen the promotional terms that were displayed on the deposit screen.”

-Judge Brodie

The reasonable consumer approach is commonly used in advertising and marketing disputes cases.

In addition, the judge noted that because Aminov did not respond to DraftKings’ arguments supporting its motion to dismiss, the court considered his claims to be abandoned.

Have you enjoyed this article? Then share it with your friends.
Back to top