DraftKings Faces Lawsuit in New York Over Misleading ’Risk-Free’ Bet Promotions

DraftKings is under legal scrutiny again as a lawsuit filed in New York federal court on Wednesday accuses the sports betting giant of misleading advertising. The plaintiff, Samantha Guery, claims that DraftKings enticed new users with the promise of "risk-free" bets that actually posed financial risks. According to the complaint, these bets, if lost, would be compensated with a "free bet" credit, which was notably less valuable than a cash bet.

The lawsuit highlights that the so-called "risk-free" bets could result in a significantly lower return compared to using cash, making them misleading. This issue has surfaced previously in Massachusetts where the Public Health Advocacy Institute also filed a similar lawsuit accusing DraftKings of obscure requirements for a $1,000 sign-up bonus, which involved depositing $5,000 and wagering $25,000 within 90 days. The New York lawsuit seeks unspecified damages on behalf of affected DraftKings customers, alleging that the company’s promotions were designed to increase user engagement and betting volumes without clear transparency.