New York judge dismisses consumer class lawsuit against DraftKings
The court dismissed plaintiff claims and ruled DraftKings’ promotion was neither ‘deceptive’ nor ‘fraudulent.’
Key Points
- The plaintiff did not show DraftKings’ promotion was intended to deceive a reasonable consumer
- The operator had filed a motion to dismiss prior to this ruling
DraftKings has won a consumer class lawsuit filed against the company that claimed it had “engaged in deceptive marketing to attract more users through a fraudulent and misleading $1,000 sign-up bonus promotion,” according to a Bloomberg Law news report.
The suit was filed by Nerye Aminov, who had signed up for DraftKings. Aminov allegedly deposited $500 in January 2022, then sued DraftKings in September 2024 “for inducing consumers to sign up and use its sports betting platform through a promotion that offered new users a $1,000 deposit bonus upon signing up,” according to the Bloomberg report.
US District Court for the Eastern District of New York Judge Margo K. Brodie explained the promotion’s verbiage and said the app’s user did not allege the promotion “could deceive a reasonable consumer.”
Brodie told reporters, “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.”
The court has dismissed this claim and other claims made by the plaintiff, following a motion to dismiss made by DraftKings.
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