DraftKings in Connecticut has consented to resolve a complaint with the Department of Consumer Protection (DCP) regarding accusations that its marketing language breached state regulations concerning advertising intended to safeguard the public from misleading practices. 

In the settlement, DraftKings refutes all claims, liability, and misconduct, but has consented to refund $3,011,766.77 to 7,075 online casino players in Connecticut who registered via promotions that advertised a “50% Casino Deposit Match” or “Casino Deposit Bonus.” The DCP claimed that DraftKings Casino deceived consumers into believing their initial deposit would receive an automatic 50% match, with funds that were free of any conditions. 

The state agency stated that DraftKings mandated online casino users to “play through their deposit and bonus multiple times without properly informing the patron about the required play through.” 

The DCP clarified that the marketing language for DraftKings Casino in question was advertised from Oct. 19, 2021, until Jan. 4, 2023. The agreement amounts to roughly $425.70 for each customer, but payouts will depend on the financial effect for each individual customer.

"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.”

In addition to the $3 million settlement, DraftKings will pay the DCP $50,000. 

 

Debatable Promotions 

DraftKings operates as a licensed online casino and mobile sportsbook in Connecticut via its collaboration with Foxwoods Resort Casino. The company also operates a retail DraftKings Sportsbook at the tribal location managed by the Mashantucket Pequot Tribal Nation. 

DraftKings is not the only one facing legal examination of its fine print. Caesars Palace Online Casino has been mentioned in a lawsuit filed in Philadelphia, which alleges that its earlier promotion stating that new users can get a “100% Deposit Match Up To $2,500” is deceptive. 

City lawyers claim that for a new user at Caesars Palace Online Casino to truly obtain the $2,500 match, they must gamble 15 times their starting deposit and potential bonus on slots, or 30 times on video poker and 75 times on “all other casino games.” This implies that for a $2,500 deposit ($5,000 with the potential match), an online slots player at Caesars Palace Online Casino would have had to wager $75K on interactive slots to obtain the entire $2,500 bonus. 

Baltimore city is taking legal action against DraftKings and FanDuel for claims of exploitative business conduct. City lawyers assert that the top iGaming and online betting brands have participated in misleading and unfair business tactics, taking advantage of the most vulnerable consumers. 

 

Connecticut Enhances Industry Oversight 

The recent DraftKings Casino settlement in Connecticut represents the latest advancement in the state's effort to enhance its tribal and commercial gaming sector. 

Last month, Governor Ned Lamont (D) enacted a law prohibiting online sweepstakes casinos that employ dual-currency systems from functioning in the state. Sweeps sites provide free-to-play online slots and also enable players to earn and/or buy “sweeps coins” that can be wagered for cash rewards. 

In June, the DCP settled with High 5 Casino for $1.5 million to address claims that the website engaged in online gambling without the necessary license.