DraftKings recently successfully dismissed a consumer class action lawsuit against its $1,000 sign-up bonus promotion. The plaintiff, Nerye Aminov, accused DraftKings of misleading users into believing that they could receive the full $1,000 deposit bonus simply by registering an account.
However, U.S. District Judge Margo K. Brodie ruled that DraftKings had clearly and prominently disclosed the bonus terms within the app, reminding users that the bonus was a "20% deposit bonus up to $1,000" and that the bonus had to be earned gradually through gameplay, not simply by registering.
Aminov made his first deposit of $500 in January 2022, and the lawsuit included violations of New York General Business Law, false representation, fraudulent inducement, and unjust enrichment. DraftKings argued that all promotional details had been clearly communicated before the user made a deposit, and questioned the plaintiff's failure to prove specific damages and deceptive conduct.
The court ultimately dismissed the plaintiff's lawsuit, finding that the promotional terms were sufficiently transparent and that a reasonable consumer would not misunderstand that they could receive the full bonus simply by registering. The judgment also noted that the plaintiff did not effectively respond to the motion to dismiss, forfeiting some claims.
It is noteworthy that in this case, the plaintiff's attorney was Shamis & Gentile PA, and DraftKings was represented by Wilmer Cutler Pickering Hale & Dorr LLP and Coblentz Patch Duffy & Bass LLP.
Previously, DraftKings was fined $450,000 by Massachusetts regulatory authorities for failing to effectively prevent credit card betting.
