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A Massachusetts court has allowed key claims in a class action case against DraftKings to continue, keeping alive allegations tied to advertising practices used during the launch of legal sports betting in the state.
Good to Know
Legal sports betting went live in Massachusetts in March 2023, bringing aggressive promotional campaigns as operators competed for early market share. One of those offers, promoted by DraftKings, promised a $1,000 deposit bonus to new users. According to the lawsuit, details tied to that promotion were not clearly explained to customers at the time.
Public Health Advocacy Institute filed the case in December 2023 on behalf of lead plaintiffs Melissa Scanlon and Sean Harris. Complaint argues that requirements tied to the bonus demanded far more spending than marketing materials suggested.
Court records show that qualification for the advertised bonus required a minimum deposit of $5,000 and at least $25,000 in wagers. Any bonus awarded came as non withdrawable site credit rather than cash. Plaintiffs allege that disclosure around those thresholds lacked clarity for consumers evaluating the promotion.
One plaintiff deposited less than $5,000 and expected the bonus to apply, later discovering that eligibility rules prevented participation. Another plaintiff completed a deposit and placed wagers but never received the bonus after being ruled ineligible under internal criteria. Both individuals signed up shortly after statewide launch of regulated sportsbooks.
DraftKings sought to end the case through a motion for summary judgment. Superior Court Judge Debra Squires Lee rejected most of that request, allowing central advertising related claims to continue toward trial. Judge did dismiss a separate allegation tied to misuse of personal data.
Mark Gottlieb, executive director of Public Health Advocacy Institute, criticized the promotion in strong terms. He said:
“The jig is up for DraftKings and its highly deceptive marketing ploy to lure new customers to wager tens of thousands of dollars chasing a bogus bonus.”
Ruling does not decide liability. Instead, decision keeps the dispute active while the court evaluates whether the case can proceed on behalf of a broader group of customers. Class certification must show that many users encountered similar confusion tied to the same marketing language.
If certification is granted, the case will enter class wide discovery, a phase that often stretches beyond a year as both sides exchange documents, promotional records, internal communications, and customer data tied to the offer. Such phases tend to shape settlement pressure and define trial strategy across the regulated sports betting sector.
Case claims that DraftKings did not clearly explain terms tied to a $1,000 deposit bonus offered to new Massachusetts customers.
Court allowed claims of misrepresentation and false advertising to continue but dismissed a separate personal data allegation.
Customers needed to deposit at least $5,000 and wager $25,000 to qualify, with rewards issued as non withdrawable site credit.
No ruling on liability exists. Case now moves toward class certification and potential discovery.
Plaintiffs must prove that many consumers were affected in a similar way before the case can proceed as a class action.