Fantasy sports firm DraftKings faces another class action suit as it continues to deal with a fall out involving insider betting.
Boston law office Bailey & Glasser is handling the class action suit which claims DraftKings’ sign up bonuses and other promotional bonusing are “themselves a fantasy”.
The claimants allege that when signing up new players DraftKings’ matching deposit bonus promise is misleading and deceptive. Players expect to automatically receive the sign-up bonus but have “to pay thousands more in entry fees to play contests, to earn points that are converted to dollars very, very slowly,” the law firm said.
“A player depositing $600 would have to pay at least $15,000 in entry fees to realize the promised $600 deposit match. And DraftKings’ requires the new player to spend that additional $15,000 within four months of putting down that first $600.”
The suit alleges that, “as designed, DraftKings’ promise of a deposit match that will ‘already be available to you’ upon registration as a new Player is a blatant deception, and its undisclosed condition requiring players to spend 25 times their initial deposit within four months to realize the 100% match DraftKings’ promised makes it virtually impossible for the Player to realize upon that promise.”
The suit is pending in the US District Court of Massachusetts.