DraftKings Class Action Lawsuit Over ‘Misleading’ Risk-Free Betting Dropped by Plaintiff
Date: 2024-08-15 Author: Leon Pierce Categories: EVENTS
DraftKings has found itself in a tough spot. It recently accidentally sent emails to its users notifying them of problems with their golf bets, many of whom had never placed such bets. This caused panic and temporarily overloaded the company’s websites.
DraftKings Wins New York Lawsuit
Additionally, DraftKings’ main competitor, FanDuel, publicly announced that it would not implement a surcharge that was proposed to help bolster its finances in the face of high taxes. DraftKings has since backed away from its plans to implement the surcharge, sending the company into a public relations crisis.
But that’s the end to DraftKings’ run of bad luck. Samantha Guery, who filed a lawsuit alleging that the company misled her and other customers with its offers of “risk-free” bets, has decided to withdraw her claim.
Guery claimed that the amount DraftKings offered as a “risk-free bet” did not match the deposit amount, misleading customers. Guery’s reasons for dropping the lawsuit remain unclear. Her legal team told the court and DraftKings that they had tried to contact her multiple times, but to no avail.
There was some speculation that Guery’s health issues may have played a role in her decision. Guery eventually reached out to her legal team and agreed to voluntarily drop the case. Meanwhile, DraftKings said it needed more time to prepare a response to the original complaint, though it may no longer need to.
New Risk-Free Betting Complications
This isn’t the only class action lawsuit DraftKings is facing, however. A similar case is already moving forward in Massachusetts, where the company is accused of similarly using the term “risk-free bet.”
The lawsuit was filed by the Public Health Defense Institute, which criticized the use of the term “risk-free” in marketing materials because it created the false impression that players could not lose their money (which is not true).
Meanwhile, a broader debate on the issue has begun in the United States, with lawmakers beginning to support the idea of banning the use of such terms in gambling advertising entirely.
