DraftKings to Refund 7,000 Connecticut Customers in Settlement
DraftKings has agreed to a settlement with the Connecticut Department of Consumer Protection (DCP) after facing allegations of breaching state gaming regulations, specifically in its marketing and advertising efforts.
LISTEN TO THIS ARTICLE:According to the DCP, DraftKings allegedly advertised multiple promotions with deposit matches or bonus bet amount offerings between October 2021 and January 2023, without clearly disclosing the terms and conditions, including the wagering requirements needed to unlock the rewards.
The settlement, which was announced on Thursday, June 10, resolves these claims and helps the Boston-based operator avoid further regulatory or legal consequences.
The settlement will see DraftKings refund $3.012 million to 7,075 customers in Connecticut. The affected patrons with active DraftKings accounts will get a direct credit within 60 business days, while those without active accounts will receive checks at their last known address.
Users will have one year to claim their payments. DraftKings must notify the DCP of any uncashed checks or unclaimed payments by players within 180 days.
When the deadline elapses, the remaining funds will be turned over to the state of Connecticut as unclaimed property.
DraftKings will pay $50,000 to the department's consumer enforcement fund to support consumer complaint resolution and education as part of the agreement.
New Requirements for DraftKings
The DCP mandates DraftKings to clearly display terms for future deposit bonuses and promotions, particularly those labeled “free” or “risk-free.”
The company is also required to list the currency type for bonuses, specifying whether payouts are in U.S. dollars or virtual currency.
DraftKings must also inform new users about its “Casino Education Hub” and train its marketing staff in Connecticut on advertising compliance annually.
For the next five years, DraftKings will submit annual compliance reports, including promotional materials and summaries of consumer complaints related to bonus offers, to the DCP.
Gaming operators must clearly communicate the terms of any promotion to their customers, including requirements to wager a certain amount or other conditions to obtain a promised award. We are happy that DraftKings has agreed to assess its promotions, provide additional training to its employees regarding Connecticut’s laws and regulations, and return funds to consumers who misunderstood and in many cases were completely unaware of the terms of the promotions they participated in.
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No Admission of Liability
Although DraftKings agreed to the settlement terms, it denied any wrongdoing and did not admit liability. As such, the agreement was formalized as an Assurance of Voluntary Compliance.
The agreement read, “Respondent denies all allegations in Case Nos: 2023-5, 2023-26 and 2023-89 and denies any and all liability or wrongdoing. Respondent is entering into this Assurance solely for the purposes of settlement. This Assurance shall not be considered an admission of liability or wrongdoing or a violation of any law for any purpose.”
This is the second major settlement DraftKings will be involved in this year, following its agreement to pay $10 million to resolve an NFT lawsuit in March 2025.
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