TLDR
- A Massachusetts class action lawsuit against DraftKings over a “$1,000 Deposit Bonus” promotion has been allowed to proceed after a judge denied most of DraftKings’ motion for summary judgment.
- The promotion required new customers to deposit at least $5,000 and wager at least $25,000 within 90 days — terms plaintiffs say weren’t clearly disclosed.
- The lawsuit was filed in December 2023 by the Public Health Advocacy Institute (PHAI) on behalf of lead plaintiffs Melissa Scanlon and Sean Harris.
- Judge Debra Squires-Lee found sufficient factual disputes for a jury, partly because DraftKings submitted recreated visuals rather than the exact signage customers saw.
- The court did dismiss one claim around misuse of customer personal information, but misrepresentation and false advertising claims move forward.
A Massachusetts class action lawsuit targeting DraftKings over a promotional bonus offer has cleared a major legal hurdle, with a Superior Court judge allowing most claims to move forward.
The lawsuit, filed in December 2023, centers on DraftKings’ “$1,000 Deposit Bonus” promotion — one of the operator’s first offers after Massachusetts launched legal sports betting in March 2023.
The promotion promised new customers $1,000 in bonus bets. But to qualify, players had to deposit a minimum of $5,000 and wager at least $25,000 within a 90-day window. The bonus itself was non-withdrawable site credit, not cash.
The Public Health Advocacy Institute (PHAI) filed the suit on behalf of lead plaintiffs Melissa Scanlon and Sean Harris, arguing the terms and conditions of the promotion were not clearly communicated to customers.
One plaintiff deposited less than $5,000 and didn’t receive the bonus, not understanding the deposit threshold. Another met both the deposit and wagering requirements but was still ruled ineligible.
DraftKings pushed back hard, filing a motion for summary judgment to get the case thrown out before trial.
To support its case, the company submitted visual materials showing how the promotion’s terms were displayed to customers. The court, however, noted a problem with that evidence.
Court Flags Recreated Evidence
Judge Squires-Lee found that DraftKings had submitted materials generated through test accounts — not the actual signage customers saw when signing up. The visuals had also been updated over time, creating multiple versions.
The judge ruled there were enough factual disputes to warrant a jury, and denied most of DraftKings’ motion on February 17.
The court did side with DraftKings on one point, dismissing a claim that the company misused customer personal information. A request for injunctive relief was also rejected.
But the core claims — misrepresentation and false advertising — are still very much alive.
PHAI executive director Mark Gottlieb didn’t hold back: “The jig is up for DraftKings and its highly deceptive marketing play to lure new customers to wager tens of thousands of dollars chasing a bogus bonus.”
Attorney Jacob Wolk said his team plans to dig further into how the promotion was originally presented to consumers at launch.
What Comes Next
Before the case can go to trial, the class needs to be certified. That means plaintiffs must show that a large group of customers were similarly misled by the promotion.
Once certified, the case enters the discovery phase — a process that typically takes more than a year and involves both sides gathering and exchanging evidence.
DraftKings stock (DKNG) was up 1.77% on the day the ruling was reported.
