DraftKings is facing a class action lawsuit in a New York district court over alleged unfair and deceptive marketing practices regarding its deposit bonus promotions.
According to documents filed in the U.S. District Court for the Eastern District of New York, Nerye Aminov has filed a class action lawsuit against DraftKings alleging charges including violating New York General Business Law and intentional misrepresentation, fraudulent inducement and unjust enrichment over its marketing practices for first-time deposit bonuses.
The suit was recently removed from the New York Supreme Court of Queens County at the request of DraftKings.
The claims of unfair and deceptive marketing practices by DraftKings were allegedly in an effort to acquire new customers. The alleged practices include the promotion of deposit bonuses and the use of “flashy” TV, social media, online and print advertising of DraftKings.
In the suit, Aminov claims that DraftKings’ “Get a $1,000 Deposit Bonus” promotion was fraudulent as he never received the promised bonus immediately after opening a new DraftKings account and making an initial deposit. The suit claims the promotion was fraudulent, as its policy and practice is to pay the bonuses in small increments over time.
Aminov alleges deceptive practices despite adhering to DraftKings’ bonus requirements. The suit claims the promotion impacted New York users who were “almost certain to lose money chasing it.” Aminov alleges that DraftKings did not properly inform its new users that its deposit bonus is calculated as 20% of up to $5,000 of the new users’ first deposit. The suit claims that DraftKings didn’t disclose the immediate need of a $5,000 deposit and a wagering of at least $25,000 to be eligible for the promotion’s $1,000 deposit bonus.
Aminov alleges that DraftKings users could not have reasonably understood the promotion. The suit also claims that DraftKings’ targeting of new bettors is an unfair business practice.
In the suit, Aminov claims in January 2022 he signed up for DraftKings and made an initial $500 deposit with the expectation that he would receive a $1,000 deposit bonus. DraftKings allegedly credited Aminov with only a $100 bonus. Aminov claims that he would not have signed up for DraftKings had he known its business practices were unfair.
The plaintiff and others similarly situated are seeking the ceasing of DraftKings’ marketing practices and restitution to customers who have suffered losses because of the operator’s practices. Aminov seeks the return of his initial deposit or the full $1,000 deposit bonus.
The plaintiff is also seeking statutory damages. The class action suit includes a nationwide class of DraftKings users who opened an account and deposited with the operator in response to its $1,000 deposit bonus promotion. Its subclass includes New York customers who were impacted by the same DraftKings promotion of a deposit bonus.
Aminov’s suit adds to recent legal proceedings regarding DraftKings’ marketing practices.
DraftKings is facing a class action suit in Massachusetts for allegedly violating state consumer protection laws for the advertising of its $1,000 deposit bonus. In August, a Massachusetts judge denied DraftKings motion to dismiss the case, which was filed by two residents, Shane Harris and Melissa Scanlon.
The two plaintiffs are working with the Public Health Advocacy Institute.
DraftKings received favorable news in August when a woman who filed a class action suit against the operator decided to drop her case. The plaintiff, Samantha Guery, filed a suit in April 2024 alleging DraftKings was engaging in deceptive and fraudulent marketing practices with its now-shuttered “risk-free” promotions for a user’s first wager.
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