DraftKings to Return $3M to Connecticut Customers over Misleading Promo Ads
DraftKings will return over $3 million to customers in Connecticut following an investigation by the state's Department of Consumer Protection (DCP) into promotional practices related to casino deposit bonuses. The settlement concerns allegations that the operator's marketing materials may have misled customers, specifically in the presentation of terms for certain deposit-match offers. The promotional campaigns in question were active from October 19, 2021, the date when online sports betting and casino gaming were launched in Connecticut, through January 4, 2023.
LISTEN TO THIS ARTICLE:The promotional campaigns in question were active from October 19, 2021, the date when online sports betting and casino gaming were launched in Connecticut, through January 4, 2023. The DCP's review, according to the agency's announcement, focused on two particular promotions: a "50% Casino Deposit Match" and a "Casino Deposit Bonus."
Related: Ohio Fines DraftKings $425K for Betting Rule ViolationsThe department determined that these campaigns potentially included unclear or misleading language, especially surrounding the playthrough requirements. The use of terms such as "free" or "risk-free" in the promotional materials likely played a central role in the investigation, raising concerns about whether customers were properly informed of the conditions attached to the offers.
According to the DCP, DraftKings was found to have potentially violated state gaming laws that require advertising to be transparent and not contain inaccurate or misleading details. Connecticut's gaming regulations stipulate that operators must not use language or design elements that could obscure material facts or cause confusion. These laws are intended to ensure that customers can make informed decisions when engaging in gambling activities promoted by licensed operators.
While DraftKings has agreed to the financial terms of the settlement, the company has not admitted to any wrongdoing or legal violations. The agreement explicitly states that the settlement should not be interpreted as an acknowledgment of liability or unlawful conduct. Nonetheless, DraftKings has committed to reimbursing affected customers and improving its promotional practices going forward.
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Over 7,000 Customers Impacted
The $3 million settlement amount will be distributed among 7,075 customers who participated in either the deposit match or deposit bonus promotions. This equates to an average refund of approximately $425 per customer. In addition to the customer reimbursements, DraftKings will pay a $50,000 administrative penalty to the DCP.
As part of the settlement terms, DraftKings has also agreed to take corrective steps in its marketing approach. These measures include additional training for marketing personnel working in Connecticut and enhanced oversight of how promotions are communicated.
DraftKings will also incorporate more consumer education materials, including references to its "Casino Education Hub," in its future advertising to ensure players are fully informed about bonus terms and conditions.
For the next five years, the company will be required to submit regular compliance reports to the DCP, detailing its adherence to state regulations concerning promotions and advertising. The agency emphasized the importance of clear communication, particularly when promotions involve conditions such as wagering requirements that may affect a player's ability to access the advertised benefits.
The DCP stated that customers who are eligible for refunds under the settlement terms will receive direct communication within 60 days. For individuals with active DraftKings accounts, refunds will be deposited directly into their online gaming accounts. Customers without active accounts may receive instructions on how to claim their reimbursement.
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