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DraftKings Seek to Move Class Action to Business Litigation Court

DraftKings has been granted a request by the Massachusetts Superior Court of Middlesex County to move to the Business Litigation Court (BLS). This comes as the sportsbook operator looks to defend a class action lawsuit against the gambling company in Massachusetts.

The venue change comes after the sportsbook operator successfully lobbied the court in Massachusetts to move the case to a specialist business branch of the court system in the state.

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The lawsuit is being led by the Public Health Advocacy Institute (PHAI), the anti-gambling organization, and is made up of customers of DraftKings who believe the terms of a $1,000 sign-up bonus were misleading to customers.

Sportsbook Gives Arguments for Venue Change

During the hearing, the DraftKings Sportsbook gave the court several arguments. The main argument is that the BLS is a court that specializes in business disputes and is heard by two judges to oversee the case. The two judges chosen to oversee the case are Judge Debra Squires-Lee and Judge Kenneth Salinger.

DraftKings let it be known that when the case arrives at the BLS, the sportsbook operator will try to get the case dismissed immediately.

There were objections to the request by two of the plaintiffs, and this included that the original court had the expertise to hear the case. Additionally, the Middlesex Superior Court has the resources to hear the case.

More Regulation News

DraftKings Offer Terms Not Displayed

In a breakdown of the litigation against DraftKings brought by the group, it concerned an offer on its sportsbook.

The offer stated that new customers would receive a $1,000 sign-up bonus, however, the DraftKings Sportsbook did not mention the various range of terms and conditions that need to be fulfilled before players can enjoy any winnings from the welcome offer.

The signup bonus was 20% of the original stake so players would need to make an initial deposit of $5,000 to receive the full 1,000 welcome bonus. Players were then expected to wager the equivalent of $25,000 before they could access these funds. Some customers believe these terms were not clearly shown from the outset.

RELATED TOPICS: Regulation

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