DraftKings Casino Settlement – DraftKings Online Casino Agrees to $3 Million Settlement in Connecticut
The landscape of the digital gaming industry is facing increased scrutiny following news that DraftKings Casino has agreed to a $3 million settlement in Connecticut. The landscape of the digital gaming industry is facing increased scrutiny following news that DraftKings Casino has agreed to a $3 million settlement in Connecticut. This legal resolution addresses a complaint alleging that the company used misleading promotions and advertising to entice users to its online casino platform, ultimately duping consumers.
The settlement equates to about $425.70 per customer, though claims will be paid out based on each customer’s financial impact.
We are pleased with the outcome of this investigation and that affected consumers will be made whole,” said DCP Commissioner Bryan Cafferelli. “Thank you to our Gaming Division team, who work tirelessly on behalf of Connecticut consumers to ensure fairness and safety in our legal gaming marketplace.”
Controversial Advertising
DraftKings is a licensed online casino and mobile sportsbook in Connecticut through its partnership with Foxwoods Resort Casino. The company additionally runs a retail DraftKings Sportsbook at the tribal destination owned and operated by the Mashantucket Pequot Tribal Nation.
DraftKings isn’t alone in having its fine print legally scrutinized. Caesars Palace Online Casino has been named in a lawsuit filed in Philadelphia on allegations that its previously run promotion claiming that new users receive a “100% Deposit Match Up To $2,500” is dishonest.
Caesars Palace Online Casino Lawsuit
City attorneys allege that for a Caesars Palace Online Casino new user to actually receive the $2,500 match, they needed to wager 15x their initial deposit and potential bonus amount on slots or 30x times on video poker and 75x on “all other casino games.” That means on a $2,500 deposit ($5,000 with the possible match), an online slots player on Caesars Palace Online Casino would have needed to bet $75K on interactive slots to receive the full $2,500 bonus.
The City of Baltimore is suing both DraftKings and FanDuel on allegations of predatory business practices. City attorneys claim the leading iGaming and online sportsbook brands have engaged in deceptive and unfair business practices and “exploit the most vulnerable” consumers.
Connecticut Strengthens Industry Regulation
Connecticut’s DraftKings Casino settlement is the latest development in the state’s mission to strengthen its tribal and commercial gaming industry.
Last month, Gov. Ned Lamont (D) signed legislation banning online sweepstakes casinos that utilize dual-currency systems from operating within the state. Sweeps sites offer free-to-play online slots but additionally allow players to acquire and/or purchase “sweeps coins” that can be gambled for cash prizes.
The DCP reached a $1.5 million settlement with High 5 Casino, one such sweepstakes casino, in June to resolve allegations that the website conducted online gambling without an appropriate license.
Frequently Asked Questions
What is the amount of the settlement DraftKings agreed to?
DraftKings has agreed to a $3 million settlement.
What did the complaint against DraftKings involve?
The complaint alleged misleading promotions and advertising that deceived consumers.
What is the financial impact per customer from the settlement?
The settlement equates to about $425.70 per customer, depending on their impact.
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